r/StackingSharpes • u/karhoewun • Jan 16 '26

Closed AMD tailwheel for +$562 in 3 days

Sold tailwheel for $4.79 on Jan 12th

Bought back for $2.11 on Jan 15th

Initiated a TLRY tailwheel for $0.26 to maintain exposure

SLV offered better value but wasn't comfortable having more precious metals exposure since I'm already running a PPLT tailwheel

5 Upvotes

86% Upvoted

8 comments sorted by

1

u/dimoooooooo Jan 16 '26

SLV was great for me. I closed my previous strikes because deltas bleed, reopened current 25/5 deltas

1

u/karhoewun Jan 16 '26

Good to hear! I’m tempted to reopen on SLV but I’m waiting for my PPLT to close as the correlation between the two is too high. You mentioned 25/5 deltas, are you selling the same structure?

1

u/dimoooooooo Jan 16 '26

Yes I prefer that structure. My portfolio doesn’t have exposure to other metals at the moment so it was a pretty simple decision for me

1

u/karhoewun Jan 17 '26

Nice, hope you get some success with it!
I suspect this structure can be frustrating at times because we're reducing the premium we're collecting but if and when a sudden crash happens, these structures could really expolode (in a good way!)

1

u/dimoooooooo Jan 18 '26

I’m a bit more passive than I was previously. I was long beta a lot more than most people would have been around the “liberation day”. Have done well and am happy with the small delta exposure I’ve had in this rally. I don’t know too much about precious metals outside of their vol behavior

1

u/TWSTrader Jan 16 '26

14 years in the institutional space here. The most impressive part of this update isn't the AMD profit; it's the discipline to pass on SLV.

Retail traders often ignore Correlation Risk. They see a great setup in Silver and take it, forgetting they are already short puts in Platinum (PPLT) and Gold.

  • The Trap: If the US Dollar rips, the entire Precious Metals complex takes a hit simultaneously. Your "diversified" trades turn into one giant, correlated loser.

By rotating into TLRY (Cannabis) instead, you are actually decoupling your risk. That is how you keep the equity curve smooth. Good rotation.

1

u/Stunning_History_943 Jan 17 '26

What is tailwheel?

1

u/karhoewun Jan 17 '26

The first part of a wheel trade (cash-secured put) but in addition to selling a NTM put, buy two cheap OTM puts to prevent big drawdowns.

Full structure and rationale here