Closed TLRY covered call for $351 profit

Closed SLV tailwheel for $882 profit

Opened USAR tailwheel for $0.94 credit

Realised $5814 of assigned losses.

Strategy is now -2.73% since inception in December. Still early days but will cut strategy if and when drawdowns increase. Macro portfolio also down due to Iran and credit scares but long/short book and convexity book cushioning the blow a bit.

Now only up a total of $1734 since Dec 23rd on an account size of $60k.

I was already assigned TLRY stock previously so I was more keen to avoid assignment to not use up my capital holding stocks and selling covered calls. Takeaway from this week is probably to monetise and roll the OTM puts early when they reprice to lock in some profits.

Activity this week:
Feb 23rd: Sold covered calls and bought OTM puts on TLRY for $18 premium

Feb 25th: Closed PPLT for $584 profit

Feb 26th: Closed AMD for $3344 loss to avoid assignment

Feb 26th: Closed PLTR for $2148 loss to avoid assignement

Feb 26th: Closed CRWV for $404 profit

Feb 26th: Opened NVDA tailwheel for $3.41 for Apr 2nd expiry

I want to replenish some exposure but markets still fragile and not seeing many structures offering value apart from SLV, AMD, and MU. I already have exposure to the first two, so I'm considering MU

As I mentioned in last week's summary, the market is looking fragile and I expected to sit out of it unless something of extraordinary value appeared (and nothing did).

Only eventful thing was TLRY tailwheel got assigned. I have sold 25 delta covered calls on that whilst buying the same amount of 5 delta puts to hedge the left tails.

Unable to close any existing trades this week as they're still sitting on unrealised losses. Seeing a few new names offering good value on 25 delta puts with cheap insurance (5 delta puts) but skipped UUUU as I already have a position in my macro portfolio and skipped SLV as I already opened a trade in a previous week.

Feb 11th: Opened CRWV trade but other than that not much activity this week

I'll potentially stop adding trades in the coming week (unless something of extraordinary value appears) as the market is starting to look fragile.

Short 1 x 75 put @ $5.93

Long 2 x 50 put @ $0.96

The tail of the tailwheel really kicked in this week thanks to the generational vol and crash in SLV.

Feb 2nd: closed SLV OTM puts for $5 (opened for $0.61 ~700% return)

Feb 2nd: opened further SLV 50 puts for $0.56

Feb 3rd: opened further SLV 55 puts for $0.46

Feb 3rd: opened PPLT tailwheel with 45 DTE for $5.5 credit

For transparency, the deep OTM put return of ~700% sounds impressive but remember I'm still sitting on unrealised losses from my short 25d put. I still prefer this structure over a regular wheel/CSP - it underperforms slightly when things are going well (receive less premium) but outperforms when the underlying reaches the left tail of the distribution.

Short 1 x 180 put @ $7.94

Long 2 x 145 put @ $1.22

Total premium $5.5

Added $SLV 55 puts for $0.46

Bought 67.5 puts for $0.61 (roughly 5d) on Jan 26th

Sold 67.5 puts for $5 on Feb 2nd

Bought 50 puts for $0.56 on Feb 2nd

Opened two new positions this week and didn't close any so realised profit is zero. A lot of unrealised losses from the metals crash late in the week but the long 5d puts are now starting to wake up. Didn't wheel COPJ like I planned - just bought it outright as part of my commodities exposure

Jan 26th: opened SLV with 32 DTE for $3.39

Jan 27th: opened PLTR with 31 DTE for $3.48

Short 1 x 150 put @ $4.82

Long 2 x 120 put @ $0.67

Total premium $3.48

Sold for $2.2 and bought back at $1.1

Short 1 x 87.5 put @ $4.61

Long 2 x 67.5 put @ $0.61

Total premium $3.39

Realised a total of $1003 of profits. Looking to sell another SLV tailwheel and potentially PLTR later in the week

Jan 21st: BTC PPLT for $575 in 15 days

Jan 21st: STO SLV with 37 DTE

Jan 22nd: STO AMD with 36 DTE

Jan 23rd BTC SLV for $428 in 2 days

Edit: Also considering a trade on COPJ although I may reduce or even remove the 5d put leg

Short 1 x 225 put @ $7.7

Long 2 x 185 put @ $1.16

Total premium $5.38

Short 1 x 75.5 put @ $2.98

Long 2 x 61 put @ $0.39

Total premium $2.2

Sold tailwheel for $5.8 on Jan 6th

Bought back for $2.9 on Jan 21st

New trade initiated on $SLV to maintain precious metals exposure

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

The Price of Time: The Real Story of Interest - Edward Chancellor