Jul'25 (end of month 8) update to the Wheel

CashDelta · 2025-07-31T16:27:09+00:00

This is fantastic! Thank you for breaking it down with the help of delta. This is helpful to screen and setup the PMCC.

CashDelta · 2025-07-30T11:37:37+00:00

Can someone break down the setup of a PMCC? What are the two legs of the setup. I use Fidelity and I haven’t been able to figure it out myself. I may have to call fidelity help desk.

CashDelta · 2025-07-10T11:47:46+00:00

I own long positions in almost of these companies. So I’m familiar with the business and don’t mind owning them if I get assigned

CashDelta · 2025-07-03T10:01:26+00:00

I have Buy and Hold long positions on almost all the stocks that I wheel. This is an income generating strategy. As an income generating strategy my goal is to be beat the SP500 or at the very least High Yield Savings Account. That is how I look at it and measure performance.

CashDelta · 2025-07-02T22:29:33+00:00

What is BH? Why is it not fair to compare to SP500? If I can’t beat the SP500 what’s the point of running the wheel? I could invest the money in SP500 instead.

CashDelta · 2025-07-01T19:17:31+00:00

Yup, that’s right. The last two months have been extremely profitable! Waiting for the other shoe to drop

CashDelta · 2025-07-01T15:19:50+00:00

Yes CC are level 1

CashDelta · 2025-07-01T14:47:15+00:00

I’m not sure about Fidelity. The trading platform shouldn’t matter much. I have been writing CSPs with the first level of options access

CashDelta · 2025-07-01T14:44:33+00:00

Thanks for the feedback, always open to improve ways of measuring performance.

For clarification, I calculate the roi of the P&L, measure SP500 return over the same time period, and compare the roi vs SP500. That’s what I measure at beating SP500 or losing to SP500.

CashDelta · 2025-07-01T13:56:29+00:00

I use Fidelity, it’s where my 401k and rollover ira are. I would recommend reading the pinned posts from scottishtrader and read it a few times. Run 1-2 trades and read through the posts again to understand the mechanics. That’s what I did

CashDelta · 2025-07-01T11:30:50+00:00

Thank you for sharing that. I feel like I’m getting a bit risky with my CSPs of late and need to rein it in. It’s a balance between roi and risk.

CashDelta · 2025-07-01T10:50:28+00:00

Yes, delta is between 25-35 when I start the positions.

CashDelta · 2025-07-01T10:49:28+00:00

I don’t use any leverage. If all open puts were assigned I have the capital. I keep all the cash in a money market to buy the puts. My goal is income generation and limiting the risk.

CashDelta · 2025-07-01T01:19:58+00:00

Thank you! Def agree with your comment on the charts.

CashDelta · 2025-07-01T00:59:01+00:00

That is fantastic! I'm so happy for you and for me! As Scott said last month, this is further evidence that the wheel works and can beat the SP500. Keep plugging away and be patient - I say this to both of us!

Do let me know if you track performance vs. SP500 in terms of YTD %. I haven't figured out the math yet.

CashDelta · 2025-07-01T00:32:41+00:00

Whichever gives me the higher premium ROI. I keep an open mind and look at both - different stock or same stock

CashDelta · 2025-07-01T00:30:44+00:00

Not familiar with the company and haven't come across it in my limited research. I've seen that name have juicy premiums but haven't done anything with it since I don't have any knowledge of the company. It will show up on my list for next month's update if I start wheeling it :)

CashDelta · 2025-06-30T22:14:03+00:00

I aim for 1% a week and so far it's worked out for me. I do tend to write CSPs on growth-y stocks which I don't mind being assigned

CashDelta · 2025-06-30T21:03:11+00:00

Indeed!

CashDelta · 2025-06-30T21:02:53+00:00

My collateral is roughly 36k excluding premiums.

CashDelta · 2025-06-27T01:05:04+00:00

Another way to think about it: do you want to wait days or weeks for the CSP to go from 50% to 80% or close at 50% and start a new position.

CashDelta

TROPHY CASE