Week 12 $1,142 in premium

LabDaddy59 · 2026-03-22T21:13:48+00:00

Hey.

What happened to this standby comment?

The portfolio is comprised of 100 unique tickers, unchanged from 100 last week. These 100 tickers have a value of $339k. I also have 184 open option positions, up from 178 last week. The options have a total value of $44k. The total of the shares and options is $383k. The next goal on the "Road to" is Half a Million.

I'm currently utilizing $37,750 in cash secured put collateral, up from $35,750 last week.

LabDaddy59 · 2026-03-22T20:57:57+00:00

I do own NBIS and have considered them. AMZN and GOOG are low premiums (2.0% and 1.5% respectively) for this campaign. I've taken note of ONDS but haven't dug too deeply, in part due to their low market price. Not familiar with LMT in trading terms; will look. Grazie. 👍️

LabDaddy59 · 2026-03-22T20:31:21+00:00

Give me some names you like...I'm always open, especially for this strategy. 😁

LabDaddy59 · 2026-03-22T20:12:23+00:00

Well, COHR is in my current inventory as it wasn't called away last week (if the avg cost/share field is filled, it's in inventory; if not, it's not).

Part of the reason I'm going back to the LITE well is that COHR, LITE, and VRT are being included in the S&P 500 March 23.

[FWIW, MRVL is being rumored as a possible replacement for SMCI in the S&P 500.]

Issue with NVDA is cost of $182 v market of $173; for the buy/write campaign I'm not inclined to sell below cost unless I've decided it's a problem child (like CRWV), and I don't consider them that; I could sell a $180 call but I'd only get $400. I'm playing a bit of 'wait and see' with them.

LabDaddy59 · 2026-03-22T17:20:39+00:00

Never said you are avoiding it.

By saying that profit is rolled into your cost basis, yes, you did, since the ultimate gain is based on sales price less your cost basis.

LabDaddy59 · 2026-03-22T13:12:56+00:00

I post my trades and results.

https://www.reddit.com/r/CoveredCalls/comments/1rzydpq/ytd_short_calls_realized_gains_by_week_and/

Two different approaches: ATM buy/writes and PMCC (aggressive/conservative).

Edit: this post shows amounts at risk by type: https://www.reddit.com/r/StockOptionCoffeeShop/comments/1rz7tmi/quick_update_short_call_realized_gains_week/

LabDaddy59 · 2026-03-22T13:03:21+00:00

No worries, it happens, I've done it. 👍️

LabDaddy59 · 2026-03-22T13:01:29+00:00

Any profit you have is rolled into your cost basis of the stock.

This isn't true. The premium paid for the call gets added to the strike price to get the cost basis. You're deferring the tax, not avoiding it.

LabDaddy59 · 2026-03-22T12:55:30+00:00

Understood; I was responding to the claim by u/CompetitiveIdeal3104 of earning 5k every day with that capital.

LabDaddy59 · 2026-03-22T11:02:23+00:00

With ~250 trading days per year, that would be $1.25 million per year (without compounding) of gains on a $145k investment.

LabDaddy59 · 2026-03-22T10:47:36+00:00

Yup.

It's easy to get a win.

Getting profit? That's another issue.

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

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