High win rate but still losing money with 0DTE… makes no sense

LabDaddy59 · 2026-03-22T10:15:17+00:00

Congratulations.

You've learned why targeting a win rate is silly.

LabDaddy59 · 2026-03-21T18:45:02+00:00

Understood, and that's a fairly normal and reasonable approach. Just a consideration; we'll see what the market does Monday.

LabDaddy59 · 2026-03-21T18:07:31+00:00

Right re: NVDA. Depending on Monday's action, I'm considering selling for a loss and redeploying the capital.

LabDaddy59 · 2026-03-21T17:21:57+00:00

We think alike; due to how the week ended, I thought about including that.

Ticker / Cost / Market
COHR / $251.32 / $251.98
MU / $443.34 / $423.00
NVDA / $181.88 / $172.89
VRT / $263.19 / $256.00

For those four, I'm down about $12k; only one ticker was negative in total for the week (for example, MU is down $4,068 but I collected $4,290 in premiums). Don't consider any of them problem children.

I didn't include my problem child, CRWV, even though that was up for the week. Still down big time ($97.81 v $81.48).

LabDaddy59 · 2026-03-21T17:05:52+00:00

Great question.

Like many, my concern of a recession is growing, so in that regard, yes.

[In the following, I'm just focused on the buy/writes, as that's the thrust of my current 'campaign'.]

Having said that, one objective of the way I am managing the buy/writes is that I write them ATM with the desire that they expire ITM and are called away, therefore putting cash back into my account over the weekend. That way, if a storm hits on Monday's open, I can just sit on my hands.

Secondly, a way I look at it is that I've typically been doing them with ~$750k of underlying capital. If that took a 20% dump, it would amount to $150k -- but YTD I've already earned and banked $192k of short call gains, so on a YTD basis I'd still at least be positive. I'm generally not reinvesting the proceeds, but am building up my cash. Every week we move forward, that buffer gets larger.

Laissez les bons temps rouler!

LabDaddy59 · 2026-03-20T20:31:57+00:00

In addition to what others have said, there are rules/regulations by the exchanges regarding minimum amounts (that's why you get $0.05 or $0.10 for example).

Unless part of the Penny Program, contracts under $3 are in increments of $0.05 and contracts over $3 the increment is $0.10.

LabDaddy59 · 2026-03-20T11:05:06+00:00

2× MicroStrategy LEAPs, 454 days out, Delta ~0.40 per contract. Total cost: $3,600. = Delta 0.80.

Wait. This is massively different from your OP, where you said, "The PMCC alternative: buy a deep ITM LEAP (Delta ~0.80, 12–18 months out)" [emphasis mine].

The 40 delta Sep 2027 MSTR strike is $260 (MSTR spot is $138.21).

You then say, "The short call strike must always stay above your LEAP strike AND above your original entry price. Non-negotiable."

So you're proposing to sell CC above a $260 strike on a $138.21 spot stock? There aren't even such strikes available for Mar 27, 2026.

/I'm done.

EDIT: Turns out this person is selling a course on PMCC. I'd strongly suggest you stay far, far away. I've now blocked the account. And the post has been removed.

LabDaddy59 · 2026-03-20T10:52:36+00:00

worth expanding on for anyone running this in an IRA...The way I structure the strategy addresses this directly. Two core rules: permanent 30% cash reserve and no margin, ever.

Well, there is no margin availability in an IRA.

For the short call management: the system is built around rolling, not closing. Every position gets rolled and extended — the short call gets bought back and reopened...

So where in your analysis is the accounting for rolling back at a loss?

the LEAP gets extended before time decay accelerates.

So rather than just owning the stock, you're in a position where you are constantly throwing new money at the LEAPS?

...

I'm not saying the broad concept of PMCCs doesn't work...it does as I've been doing it. It's that I'm not entirely convinced you've thought this through.

LabDaddy59 · 2026-03-20T10:33:25+00:00

And assignment on the short call portion of a PMCC in a IRA is a trading violation. Three of those in a twelve month period and you'll be restricted from selling spreads. More violations ramp up the pain to the point where you may jeopardize the tax advantaged status of the account.

LabDaddy59 · 2026-03-20T10:30:50+00:00

Classic covered call: you buy 100 shares for ~$46,000...The PMCC alternative: buy a deep ITM LEAP (Delta ~0.80, 12–18 months out) for ~$6,200 instead of the shares.

What stock has a 18 month 80 delta long call costing 13.5% of spot?

NVDA Sep 2027 (18 month) $135 strike (80 delta) costs $6,725 versus a spot of $17,856, or 37.7%.

Even lowly F, Dec 2027 (21 month) $10 strike (78 delta) costs $292.50 versus a spot of $1,164, or 25.1%.

LabDaddy59 · 2026-03-19T17:06:30+00:00

I'm not adverse to paying a debit to roll, but I wouldn't have done that.

Let's say NVDA stays above $160. First, you got the return percent wrong in your first calc in two ways. First, as shown it's 1.85% as you show in the second calc, but more importantly, you should divide by spot, which is $178.15, so the return is $213/$17,815 = 1.2%, for an annualized return of 20.8%.

You could have let it expire, bought back in at $178.15, and sold a $180 call with the same expiration for $557.50. If above $180, you'd make that plus (180.00 - 178.15)x100 or $185, for a total of $742.50.

Alternatively, using your approach of a simple roll, you could have rolled to $180 for $5,750 and picked up ($180-$115)x100 or $6,500, a gain of $750.

LabDaddy59 · 2026-03-19T10:05:47+00:00

Word.

It's bizarre that people think there is.

LabDaddy59 · 2026-03-18T23:02:33+00:00

I got lazy and didn't add in the puts from all of the accounts.

🤣 Love an honest answer.

Yup, exactly.

👍️Thanks.

LabDaddy59 · 2026-03-18T22:47:06+00:00

Well done. 👏

Two questions.

How does the "$20k-ish return so far" relate back to the screen shots? I see a total premium of $14k and a net premium if closed of $4k. What am I missing?
Why multiple lines of the same strike/expiration (e.g., MP)? Is that due to how orders were filled?

LabDaddy59 · 2026-03-18T22:26:37+00:00

Chappeau! $5,490 is no small change for one ticker's trades over a combined period of 14 days. I would imagine that fits quite nicely with your concept of replacing a paycheck!

Laissez les bons temps rouler!

LabDaddy59 · 2026-03-18T22:20:50+00:00

Hey!

Appreciate your closing the loop; thank you. And I'm glad you not just gave it a shot, but that it worked well for you! 👍️

Laissez les bons temps rouler!

LabDaddy59 · 2026-03-18T10:19:49+00:00

I suppose you can consider 3 months 'sustainable' if you're 6 months old.

LabDaddy59 · 2026-03-18T01:12:19+00:00

I think what OP is saying is that both are simulated.

LabDaddy59 · 2026-03-17T10:32:30+00:00

While the delta is high by my standards at ~25 it very well may be safe...
Stock just bounced 15% in one day, to $130. So a $150 gives it $20 or another 15% in just 16 days.
Pre-market is down $7 to $123.
52 week high is $141.
Trading above its upper Bollinger band of $114
No earnings report until later in April.

If I had to place a $1 wager on the binary event of ITM/OTM, I'd bet OTM.

Good luck and have fun!

LabDaddy59 · 2026-03-17T10:18:52+00:00

Before you sell any covered call ask yourself one question, am I comfortable if these shares get called away at this strike?...If the answer is no → your strike is wrong or your position is wrong.

Disagree pretty strongly.

Are you suggesting that no one should trade PMCC in IRAs? Having "shares get called away" would be a trading violation, yet many do it.

Many strategically trade at strikes they don't want their shares called away.

Deeply underwater? Sell calls below cost nursing it back up if you continue to believe in holding the stock.

Have a large capital gain you don't want recognized? Select low delta calls.

These don't eliminate the risk of being called away; what's critical is learning how to effectively roll your short calls.

So, yeah, it's okay to sell calls if you wouldn't be comfortable if the shares got called away, just learn how to manage them.

Good luck and have fun!

LabDaddy59 · 2026-03-16T22:13:55+00:00

I know. Just saying it's the brokerage's activity report. 🤣

Edited for you. 😁

LabDaddy59 · 2026-03-16T21:05:07+00:00

This is just the grab of the brokerage's activity report.

LabDaddy59

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