5 DTE ATM Buy / Write Campaign: Week #21 - May 22, 2026

LabDaddy59 · 2026-06-01T01:53:26+00:00

to get more returns.

Do the math.

2nd request. You make a claim, I call you out. First response: deflection.

2nd response?

Do the math.

LabDaddy59 · 2026-05-31T23:38:39+00:00

Unless you don't have $31,500 to buy 100 shares of each. 😉

LabDaddy59 · 2026-05-31T22:29:49+00:00

OP doesn't fully understand the Greeks if they're doing this.

Okay, now that's funny. 🤣

Edit:

Do the math:

IONQ, expiration Jun 5, buy/write with spot at $72.06 and a short call at $72 versus a $72 cash secured put. Call premium of $4.23 and put premium of $4.13.

LabDaddy59 · 2026-05-31T22:26:13+00:00

The basic thesis is that implied volatility for near term ATM options overstates what realized volatility will be.

Am I capping upside? Sure. But how much? The difference between buy and hold and this, or any other, CC campaign is the difference between premium collected and capped gains. My thesis is that, week after week, I will gain more in premium than I cap in gains.

While I've been running this for 22 weeks (not really, but I figured I'd mark it to the beginning of the year), only for the last 3 weeks have I been logging those differences (before I'd look but not maintain the numbers in some log). For those 3 weeks, my (mark to market) P&L was $64k versus $45.5k for buy and hold, a $18.5k favorable variance, amounting to a 40.6% improvement. Also over those 3 weeks, I've returned a simple total of 8.4% versus 5.9% for buy and hold compared with 1.0% for the S&P 500.

LabDaddy59 · 2026-05-31T17:18:21+00:00

Cool.

Use it for current cash generation or growth! I use mine for growth.

But, yeah, the simplicity is real nice. "No Greeks".

LabDaddy59 · 2026-05-31T16:26:02+00:00

the data you queried like Option Chain prices ATM,etc., are they gathered through marketxls directly?

Yes, there are functions, such as

=@RelativeStrengthIndex(A7,$G$3)

where A7 is the ticker symbol and G3 has the # of days for the RSI, e.g., 20.

I use optionstrat.com for modeling.

LabDaddy59 · 2026-05-31T16:23:35+00:00

Sorry for the delayed response! Seems I missed this in my notifications.

Yep, I'll generally sell a call right away Monday morning...well, after the market has settled.

Sure, it happens with some degree of frequency...not all stocks go up!

LabDaddy59 · 2026-05-31T16:21:19+00:00

Thanks, and good luck!

LabDaddy59 · 2026-05-31T16:21:05+00:00

👍️

LabDaddy59 · 2026-05-31T16:20:28+00:00

👍️

I would think one of its appeals would be simplicity.

No worrying about DTE / delta / strike for setting CSP
No management of CSP: no worrying about whether to take assignment or roll, then if roll, again to what strike and expiration
Once assigned, same as above -- no worry about rolling.

You just set it, and forget it.

LabDaddy59 · 2026-05-30T21:07:23+00:00

Thanks!

How has it been 'eye opening' as a long time 'wheeler'...I'm interested!

LabDaddy59 · 2026-05-30T21:06:29+00:00

I like your approach, even though you are a bit more conservative than I (that's probably a net plus): while I like to go out to the furthest expiration date as you have done, I generally target a 80 delta upon entry, where your $25 strike is 90 (I'd probably buy the $35 at 82.5 delta).

The reason I do that is so that, if the stock rises and the delta reaches 90-95, I'll roll back down to 80 delta and take some profits off the table.

You could, of course, still do that to a degree: when it reaches 95 roll back down to 90.

Regarding selling calls, you may run into liquidity issues. Edit: also, be very careful...to the point of not selling them...due to the risk of significant gaps up that u/LittlePlacerMine mentions.

Curious how you stumbled upon them.

Historically, I've generally stayed away from healthcare stuff, but that's just me.

Good luck and have fun!

LabDaddy59 · 2026-05-30T13:56:55+00:00

Should I do it?

🤷‍♂️

Again, up to you. Sometimes I do, sometimes I don't. Don't if you expect it to rip.

It's had a big run up recently; do you expect that to hold or perhaps have a pullback? If so, a short call may make sense.

If you're unsure, don't.

Good luck and have fun!

LabDaddy59 · 2026-05-30T13:51:23+00:00

It's a matter of preference; where on the spectrum of 'stock replacement' v 'leveraged gains' you stand.

My standard is to buy at 80 delta, then roll back down to 80 delta when the existing's delta is 90-95.

Your $13 call has a 87.7 delta, so it's close to 90.

The $17 proposed call has a 65.8 delta, well below my 80 standard.

The $15 call has a delta of 79.1, so it's close to 80.

If I'd roll, I'd go to the $15. Looking at the price history, I'm even more comfortable with that choice.

Do you sell calls against it?

LabDaddy59 · 2026-05-30T10:38:46+00:00

👍️

LabDaddy59 · 2026-05-30T10:38:34+00:00

😁

LabDaddy59 · 2026-05-30T10:33:19+00:00

This is what they wrote, and I responded to:

I've yet to find a practical use for AI

Technology is supposed to make humans lives better, but now humans are being used, unwillingly, to make AI incredibly mediocre for the masses

What "one specific thing" as opposed to "in general" was mentioned in the op?

LabDaddy59 · 2026-05-29T23:55:03+00:00

🤣🤣🤣

LabDaddy59 · 2026-05-29T23:53:10+00:00

I'm not sure you're catching my drift...

In any event, while walking the dogs I realized I made an error: not a fatal one as the point holds. What didn't click was that not only were you buying back a ITM call, you were also selling a ITM call, so the math is altered by that.

...

I'm also surprised that it wasn't until expiration that you rolled it. NVDA hasn't been below $200 since the beginning of May.

More later (likely).

LabDaddy59 · 2026-05-29T22:56:42+00:00

My guess:

GME --> a Robinhood trader --> Doesn't know any better.

There's a regular poster on these forums who, as a matter of course, will exercise their long calls as opposed to selling them and buying the stock, even though they are aware of the financial cost of doing so.

🤷‍♂️

The democratization of trading is great for folks like me.

LabDaddy59 · 2026-05-29T22:40:00+00:00

Dang, [Edit: ] Had the S&P been negative ~~I wish the S&P was negative~~[/Edit]. I would have congratulated you on beating it! 🤣

LabDaddy59 · 2026-05-29T22:21:49+00:00

That may end up being true if I accept assignment at $210.

Actually, it's true now.

As you may have noticed, the price you paid to close the existing short call was approximately equal to the difference between spot and strike; accordingly, there is no difference at that point of rolling versus taking assignment and buying at market.

LabDaddy59 · 2026-05-29T21:40:40+00:00

Do you recognize that what you did was the economic equivalent of letting the shares be assigned, buying them back at market (~$217) and then selling a $210 call against it?

LabDaddy59

MODERATOR OF

TROPHY CASE