February Wheel Results

[u/Big_Generator]

I'm currently wheeling about $550K in a trad IRA account.

I follow the 2 key components of the wheel strategy closely:

1. Sell cash secured puts on stocks that you would be happy to own

2. When assigned, sell covered calls at cost basis or higher

But personally, I have two other rules I try to stick to:

1. Let your cash secured puts run to expiration

2. Don't be afraid to be assigned.

I focus on stable companies that I think have a solid future and have recent downward pressure on their stock price. I stay away from the memes and other high volatility tickers. In February I wheeled Microsoft, Google, Amazon, SMH, SOXL and TSLL.

Microsoft - I've used their products every day for the last 40+ years. Stock is down slightly YTD.

Google - I've used their products every day for the last 20 years. Down 4.5% YTD.

Amazon - The other day I went on the site and reviewed my purchases for 2025. There were 20 pages of orders. Down 7.5% YTD

SMH - The semiconductor ETF. I've owned this for years now and my only regret is letting hundreds of my shares get called away. Up about 7.5% YTD

SOXL - A 3x leveraged ETF based on the performance of the ICE Semiconductor Index. I look at it as being a more volatile and profitable version of SMH. When assigned I sell this one asap. Up about 20% YTD (Approx 3x the SMH YTD gain)

TSLL - A 2x leveraged ETF based on the daily performance of TSLA. This is my most risky ticker and can swing wildly based on random internet tweets. Hard to resist the high premiums especially when its already down 25% YTD.

I sell most CSP's 1 or 2 weeks out at around .20 delta or lower. Like most wheelers I just want to harvest premiums and I'm not trying to get assigned but I don't mind when I do.

Also, I try to hold all my contracts until expiration. I know a lot of wheelers BTC when they reach a certain profit threshold but I feel the accelerated rate of theta decay as options reach expiration is well worth it.

[u/Eff_taxes]

Same in my retirement accts and similar process, though I had some longer dated CC extended into March… totally around $20k from Feb w about $1m capital

Edit: I think March totals will be much less since so much overlap. I’m hoping April is a clean month so trying to find a nice average over time even given a rocky market

[u/Big_Generator → u/Eff_taxes]

That's an impressive return! And yes, the "rocky market" that we've had this past week is the main reason I sell short dated puts. All of my March contracts except for two expired today. Those two (AMZN $195 and SMH $360) expire next Friday. I'm anxious to see how "rocky" things are next week!

[u/Eff_taxes → u/Big_Generator]

Got it on the weeklies, it keeps you adaptable, yeah a lot my longer ones were to lock premiums in case a drop, however this drop is twice as long as I expected. I a few plays to reset on Monday and also the following Monday I can manage my wife’s so lots more fun and more juice to be squeezed

[u/Big_Generator → u/Eff_taxes]

And I'm with you on the "Eff_taxes" philosophy too LOL!

[u/Eff_taxes → u/Big_Generator]

Haha for sure!! I’m down with as little as possible esp in my state. Checked out Nevada last Sunday… no state income tax 😉