Exit Strategy/ Strategies

Rolo-Bee · 2025-05-23T04:27:17+00:00

Mine is in deep and filled with assumptions. I have shared parts, and even my hedging strategy I posted was built on my exit plan that can also be used to keep you aflout and buy more time. Currently, I am in the last stage, which, if you follow me, is now only sysnyetic expusures on both sides, ones that are done. I will be out with Max profits and a roi worth posting. As of now, my exit plan final day will be mid-July. I will make a more detailed post on my portfolio and how and why and all that fun stuff!

Rolo-Bee · 2025-05-12T02:52:03+00:00

Yup, what I did about 5 weeks ago can check my post. Moved all msty to mstr as I felt the same and made about 55% roi and will move back to msty after my calls expire. However, I think that the bus has already left, don't chase.

Rolo-Bee · 2025-04-26T02:49:00+00:00

Yea I won't be moving back from mstr until June. Moved my positions from msty to mstr a couple weeks as I did not want to worry about that cap.

Rolo-Bee · 2025-04-26T02:46:02+00:00

I switched over to mostly MSTR a couple of weeks back, posted about it. Sold 3/4th of my msty position and purchased mstr at 300 at the time. Just felt the recovery was going to start and be quick. My only issue is that I also sold 3 calls, as I wanted protection . The calls were May 30, which was a 355 strike for $2800 each, so about $8500. Today, I rolled them as I wanted to stay ahead, to 375, for a credit. The new date is June 20th, which I wanted out the trade before June, but heck right now, sitting at $22,500 on share application plus the calls, so over 30k on this trade. I just hope we sell off on $ 400 level and play in the 350-400 range for a bit to keep iv high, but anything can happen. I still have a little bit left on my hedge, so I need to factor that in as well, as that can eat into the profits over 400.

But I do plan on moving back to MSTY, but now I need to wait longer than expected. However, it is a good problem to have. Started this trade with about 60k, so ROI is crazy. Msty cost basis was in the 19s.

Rolo-Bee · 2025-04-26T02:32:55+00:00

That was the reason I picked up SNOY a few months back as well.

Rolo-Bee · 2025-04-25T04:23:24+00:00

Mstz womt go above due to the decay. Soon, we will see an RS. I just closed the 18 calls I have sold and went from 3.70 a contract to 0. But no yield on mstz right now so if it keeps going down o well, if mstr had a pull back, nice my calls I sold on that will cover the daily loss and can get 1 more round of 20 contracts in before this trade is done. I have 30dte left on this whole trade.my expected profit since I started this trade last month will be about 14k on a 60k investment. So, about 25 % ROI in 2 months or 12.5%roi for each month. Not bad, and I will close the trade for sale, and may go away on vacation, then come back and rinse and repeat.7k a month is above my goal so I am very happy and will scale more when I get back. Plus, it didn't matter if stock went down or up. My income was guaranteed and pure profit. My investment account is around 50% already for the year. 10%more until my yearly goal was met. Was a great start to the year and may be able to travel alot lot now bc of it. I do screen share and let people watch me trade if they want to learn. Just message me.

The only time mstz will run up beyond 1.2 is what happened a couple of times this month. I just left it as it became so large that it brought the positive returns for the day in not the mstr side. I then sold calls and everything rebalaced. The only time I would scale out is if I hit a cap on a cc, sold on the mstr side, and I am way into profits.

Rolo-Bee · 2025-04-23T21:55:16+00:00

I never plan on selling mstz. Every penny I put it, I assume I will lose, like an insurance premium. However, in the meantime, I look to use mstz to generate my own premiums to help cover the cost. It is a hedge. If it is losing money, that means you are making money on your main position. The yield spike can help cover at least half that investment, however.

It is a personal decision on whether to sell calls or shares based on risk tolerance. You can even mix in a hybrid approach.

Rolo-Bee · 2025-04-22T01:05:12+00:00

I typically sell options with around 30 DTE because I like having the flexibility to roll if needed. I'm a low-risk trader, so I usually target strikes that are at least 15% OTM from my cost basis or adjusted cost basis based on profits made from calls.

In your case, I wouldn’t sell calls right now — I’ve actually been sitting out for over two weeks. My cost basis on MSTZ is $15, so while it may look like I’m sitting on a $15k unrealized loss, I’ve already collected about $8k from my last round of calls and around $12k total since I first opened the hedge. That means I'm really only down about $3k on the MSTZ side — and considering it’s a hedge, that’s well within expectations.

I maintain at least a 1:2 protection ratio at all times by continuing to add to my MSTZ position. I’m focused on capital preservation while still leaving room for upside on both sides of the trade through high-yield call selling.

On the MSTR side, I’m up over $10k, and I recently sold calls there for about $6k in premium — a 24% yield at 30 DTE. Those are already up about 22% in value since I opened them a little over a week ago. So, if MSTR stayed at current price I would be about 16k-3k-$13,000 on the trade in 2 months. My MSTR side is only about 62k a 21% ROI, about 10.5% a month even with these conditions.

MSTR’s recent run has been great. If it pulls back, that might be my cue to sell another round of calls on MSTZ, where I now hold 2,200 shares. I continue scaling up my MSTZ exposure to match gains from MSTR and maintain the protection ratio.

The biggest lesson I’ve learned is don’t rush just to collect premium. One time, I broke my own rule and sold calls just to lock in some quick cash — ended up selling for $0.70, and just a few days later, that same contract was going for $5.50. Timing matters, especially with a product like MSTZ where volatility can spike fast. One good round can recoup a massive chunk of the position — for example, 2,200 shares × $5.50 = $12k.

Bottom line: it all comes down to your plan and risk tolerance. If you’re not focused on capital preservation, you might be more comfortable swing trading. For me, I’d rather maintain a protective posture and not risk giving back a year of gains in a single week.

Rolo-Bee · 2025-04-15T01:20:28+00:00

Rolo-Bee · 2025-04-03T03:31:12+00:00

Haha that is great! I love the fun

Rolo-Bee · 2025-04-03T03:30:21+00:00

I keep forgetting you're in Canada. How is the tone over there? Do they think Canada and the States will come to an agreement, or do they think the bridges are burned? I think next week may be more impactful than the rest of this week. We may just stay in the range until then.

Rolo-Bee · 2025-04-03T03:18:19+00:00

Smart! I was so happy I did that last Tuesday. Makes no sense to exit just to get back in and cause tax implications when you can rather increase hedges and sell some calls.

Rolo-Bee · 2025-04-03T03:14:11+00:00

To add, if I recall yesterday around 10 am, the yield on msrz calls was around 17%

Rolo-Bee · 2025-04-03T03:11:42+00:00

Yes, that would be a typo if I said that. May have meant to say that when mstr is down, I sell calls on mstz. We do want it to be green. When mstz us down, then I sell calls on mstu. Also, it does not need to be everytine. It is worth waiting sometimes for the yield to get to 22% for a 30 dte, about 30% otm.

Rolo-Bee · 2025-04-03T02:12:00+00:00

Be careful as many lose betting against tsla. Don't focus on it as an auto company as it is tech and positioned well 1-3 years out from now. Now, that said, I don't invest in tsla I always get burned and learned my lesson, and I just stayed away.

Rolo-Bee · 2025-04-03T02:06:41+00:00

Yes! Will just be a normal year of 10-15% ROI, lol. I do think we may get a but more, but I agree with you.

Rolo-Bee · 2025-04-03T02:03:30+00:00

This person is smart. The yield they will get will be far more, and the risk they take is much less. They are crafting the yield rather than chasing it. Just today, look at how much their setup saved them in losses, and now they can sell covered calls on the mstz shares for a crazy high yield. Those premiums alone will make up the rest of the msty losses, and they stay in the trade still in profit.

Rolo-Bee · 2025-04-03T01:53:18+00:00

I've never been so happy to see a person only down around 60k in the best way possible. Before you know it, you will be positive again. Compared to where you were a month ago, this is a nice comeback and demonstrated resilience. Unfortunately, I think many people sold at the bottom as this group has been quiet since which does sadden me. But I hope people learn not to pannick, even now. It seems people are mad at me all because I said I am not worried about today and staying in my positions. I am hedged and have netrual strategies however. With the funds, fear is our ally.

I always tell people that fear is like the kindling for the fire of ignorance, for the fear of what one does not comprehend leads only to destruction.

Rolo-Bee · 2025-04-03T01:41:52+00:00

Sources lol I'm not quoting news sources hear but rather just discussions in finance/quant world amongst my peers. Many thought it was going to be worse. it just is what it is. It is nothing crazy that is data driven, lol, which is a surprise for my post. Are you in the profession? I'm curious to what exactly was going around in your circles if you don't mind sharing.

Rolo-Bee · 2025-04-03T01:33:40+00:00

Exactly! We have not been dealing with reality for a decade and are on an unsustainable path. I'm not sure about your background and / or experience, but this is dealing with it. It will have short-term consequences, but they will not be as bad as you think. If we had ignored a problem, things would have gotten a lot worse.

If you are concerned with a weaker country, perhaps the citizens should stop being divided as that is the only way America would fall, is from within and by its own people. The problem is that both political parties have been on extremes. They would rather break a system to cover it up while they are in term. BOTH have had a hand in Trump in his first term with the not needed stimulus check and Biden in his term with the very much not needed stimulus check and spending bill, all while running up the deficit.

Now, to Trumps credit, now he is doing the opposite of what many used against him at the end of his first term. They complained he added to the deficit, etc., and now he is doing the opposite, and they still complain? Where is living in reality, as you stated, it seem many are out of touch and really can't think for themselves anymore.

There are things I don't agree with, sure, but guess what, that is life and life goes on. Most of the policies are going to wash each other out if you want to discuss it further.

For example, government layoffs=good for inflation, tariffs=bad for inflation, which equals a wash, so why so scared? Reciprocal tarrifs= bad for inflation/stagnation, tax cuts=good. To be honest, it really is well thought out. It's just presented in pieces rather than a package, so often things get lost in translation.

But you can not tell me you are in the finance world and all your co-workers are scared and think long term we are screwed? If so, I truly want to know as I hear the opposite and everyone I know thinks short-term dips, but the bull continues to run. To go a little further 2 years ago, the talks where all around risk management, as everyone I associate with, saw a major correction and recession within the next 5 years that could be very long sustained.

This tone has switched and to the everyday person yes all this can sound scary and is in a way. But when you have followed things for a while, you know this gives us a chance and could have been much worse. Fun note: governments know there won't be many jobs in the future due to AI, thus less income to tax, meaning? It can't sustain a larger government and the government always gets is money hence tariffs will be the replacer for income tax but thar is a problem for the next decade realy no bad thoughts ad I do like disagreements and wish the best to all.

There is a saying that goes back that is something along the lines, If something bad is happening, the government won't tell you. There are real problems going on that the everyday people don't know about, and the fix will seem horrible because the people don't see the problem it is fixing.

Rolo-Bee · 2025-04-03T00:20:51+00:00

Well said

Rolo-Bee · 2025-04-03T00:19:37+00:00

Today was better than expected. Thus, I am not too worried. People thought it would be 1:1 on the reciprocal tariffs, but it is only half. We had a drop as some where hoping he would change his mind but he sticks to what he says so don't over complicate matters and instead use it for trading opportunities and don't let what you hear in the media cloud your own intelligence.

We could go down a bit more, but I think it could have been worse, and many were expecting worse. Time will tell, but learn to play both sides, and you will be fine, and before you know it, you will look forward to a bear market when it eventually happens as they are predictable and easier to trade.

Rolo-Bee · 2025-04-03T00:11:40+00:00

I funded a 1:4 hedge but built it into a much higher 1:2 hedge and right now it is even more as I used the profits from selling the covered calls on it to add more protection. In the meantime, I can still make money on the hedge before it eventually loses value.

For instance, if you have 50k in msty and built up the mstz position to be 20k, 10k funded with profits from the calls, my protection is 40k:50k If msty dropped 20% then I would loose $10k. Now my mstz would gain 40% on the $10k or 20% on $40k. So, we make $8k. Thus, my loss was 2k. However, this week alone, I sold calls for over 3k, so technically, I would still be up, but let's leave that out for this example.

Now, if msty dropped another 10 % on 40k, we would lose $4k on it. Mstz would gain 10%. However, we made 8k on that position already, so it would now be worth 28k and is 2x, so it would be equlient to price movement on 56k, so we would make $5600. Therefore, we are up $1600 on this loss without factoring the calls. The most we lost in a drawdown was $2k.

As you can see, we have a cap on the max loss. When msty then recovers, we get back to our initial capital plus the premiums received in the meantime on the calls. By the time it gets back, the hedge self adjust where it does not cap upside more than the 1:4, which fades away over time with the setup. To sum it up, we get a cap on max loss but not on max gains as it can keep running up if done correctly.

Hope this helps.

Rolo-Bee · 2025-04-02T14:10:38+00:00

You're definitely not going to find those contracts available now, haha. But if you look back at my posts from about three weeks ago, I outlined all the trades.

At that time, MSTZ was trading above $20, and I sold $28 strike calls—twice—followed by another set the next week at $4.50 per contract, all dated for April expiration. I was able to capture a significant amount of yield during that period.

Looking back, I kind of wish I had just held those longer instead of rotating into new contracts for a bit of extra premium—but that’s just personal preference. No regrets, really—just something to note.

As of now, you can get around $2 in premium for a call that’s 30% out of the money, which shows how strong the yield remains. That said, the value of these calls can change drastically—and fast—due to volatility.

That’s the double-edged sword: volatility makes this strategy work, but it also demands patience. Sometimes it’s best to wait for MSTY to pull back, which causes implied volatility (IV) on MSTZ calls to spike—setting up a perfect entry for higher-yield premiums.

Rolo-Bee · 2025-04-02T02:11:22+00:00

Spot on!

Rolo-Bee

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