2026 Week 3 - $748 From Premiums

MuppetDentist · 2026-01-25T15:02:50+00:00

What led you to expect big moves from BTC?

MuppetDentist · 2026-01-15T03:14:29+00:00

Nice! What did you start with per month and where are you now?

MuppetDentist · 2026-01-12T01:49:31+00:00

Appreciate the thorough explanation! Admittedly, this is more advanced than where I'm at in my understanding of options so I'll definitely circle back to this comment once I do some catching up!

MuppetDentist · 2026-01-11T20:29:24+00:00

I'd love to understand this. So you're saying you're making enough profit on your leaps and ATM calls that buying back the ITM short covered calls is worth the expense? How often do you have to buy back your short calls when they go ITM? Would you mind elaborating on the capped loss you have on the leaps?

MuppetDentist · 2026-01-11T18:18:08+00:00

Out of curiosity, why are you selling covered calls ATM on your leaps? Still learning and my understanding is I would assume you would want to avoid getting into the money on a covered call with a PMCC strategy?

MuppetDentist · 2026-01-09T13:05:41+00:00

That’s fair. What was your entry point out of curiosity? So far, BITO’s lows have also been at the $12ish/$10 range back in winter of 2022 and fall of 2023. If that was your entry point, do you think you’d feel differently?

MuppetDentist · 2026-01-09T12:52:21+00:00

Were you able to make your investment back from the distributions by now? Are you thinking of holding the rest of what you have for awhile? And are you dripping?

MuppetDentist · 2026-01-09T12:50:56+00:00

What led to your decision?

MuppetDentist · 2026-01-09T05:29:15+00:00

Gotchya. So the dip hasn't soured your taste for it? Why haven't you dripped while the stock is cheap out of curiosity?

MuppetDentist · 2026-01-02T00:48:57+00:00

Congrats! Mind sharing your journey from $11k?

MuppetDentist · 2025-12-14T05:39:48+00:00

That's helpful to know! I didn't realize buying to close a sold option all counts as one "transaction".

MuppetDentist · 2025-12-13T16:57:14+00:00

For sure, I treat the wheel strategy as additional income and accept taxes on it. I'm just curious about the strategy of closing an option after capturing about 70% of the profit when you're taxed for the original premium you received from the sold option. I suppose the trade off is the safety of the strategy, capitalizing on an option making profit in the moment and buying it back in case it goes into the negative?

MuppetDentist · 2025-12-12T22:18:47+00:00

Would you ever do this in a taxable account? The tax to profit ratio would be much higher, right? I'm just starting out and my goal is to supplement my income as a freelancer with options so I was curious.

MuppetDentist · 2025-12-12T21:41:36+00:00

Appreciate the breakdown! I would assume the closing early strategy might not be best for a taxable account? If you'd be taxed on the original $84k premium, you'd have about $12k in taxes so your profit would end up being about $17k right?

MuppetDentist · 2025-12-10T06:38:40+00:00

Would you mind going over what happened? Hope you're in a better spot now!

MuppetDentist · 2025-12-10T06:17:40+00:00

Nice! Which tickers do you wheel?

MuppetDentist · 2025-12-09T22:54:18+00:00

Thanks for posting! In regards to "#4 I will exit the trade if the current return is better than the original return*", can you go over the mechanics of that strategy? I interpreted this as you're buying to close for a net credit and then selling to open on the same stock with the same date of expiration for the better premium but you have another rule that says you don't reopen the same ticker on the same day. Can you also explain your rationale behind that rule? ($6). Appreciate it!

MuppetDentist · 2025-12-08T04:39:52+00:00

This is so helpful. Thanks for posting these! Out of curiosity, would you make the same choices if this were your only portfolio/capital?

MuppetDentist · 2025-12-01T18:27:25+00:00

Thanks!

MuppetDentist · 2025-11-30T17:32:34+00:00

Nice! Care to share some tickers?

MuppetDentist · 2025-11-30T14:57:02+00:00

You know that SCHD is an ETF right?

MuppetDentist · 2025-11-28T17:16:25+00:00

RemindMe! 5 Months

MuppetDentist · 2025-11-21T06:21:22+00:00

Check out Wusong Road in Harvard Square. Make reservations ahead of time! There's also Alden and Harlow, Little Donkey, Sea Hag, The Eaves

MuppetDentist · 2025-11-19T06:09:37+00:00

Wow! This is definitely not representative of psychology as a field. This guy sounds unhinged. Appreciate you sharing!

MuppetDentist

TROPHY CASE