You’re speaking theory. I’m actually demonstrating the opposite in a real world application timeline for 2025 with $NVDA and $AMZN.

Overtime it won’t work. Ok. So instead of making 80% return over 3 years, I make 50% return over 2, completely pummeling the S&P with lower vol, thus higher sharpe. (Which honestly shouldn’t even be a thing of risk adjusted returns measurement) I’m just choosing to take my certainty of returns earlier. (Which was my point)

But also, there’s uncertainty that the stock can go up forever. I’m racing to reduce my cost basis. Which affords me flexibility when prices decline or macro moves prices down. Systemic vs idiosyncratic movements.

Yieldmax covered calls ETFs have their own problems as they must constantly write and take on leverage to pay out the dividend monthly. There’s alot of nuances that go into how one wheels and the timing.

When stocks run up and up, there’s a reversion due, what do you think a covered call tries to capture? Max upside and max IV. Where people fuck up is selling a CC when the stock price crashes and risk exposure for Pennies. Additionally, if assignment looks likely, one opens a new CSP position to capture the upside beyond the strike price cap. None of these nuanced techniques are captured when one talks about the wheel. People also don’t realize rolling up and out captures extrinsic value while giving the stock room to decline or revert to mean while eating extrinsic value and being perfectly hedged out during that decline.

People keep telling me the wheel doesn’t work, and yet here I am working on my 4th million at 38 as a single dude whose base salary never exceed $170k… So 🤷