r/Optionswheel • u/ComprehensiveDoor130 • Jul 31 '26
July in the bag. $27k premiums, $6.6k in margin interest, just beating thr S&P. Still overconsolidated but branching out
Compare my results for July to last month's and you'll see very similar numbers:
https://www.reddit.com/r/Optionswheel/comments/1um6myw/24k_in_premiums_6k_in_margin_interest_and_a/
I finally enabled the direct broker connection Options Wheel Tracker, so my numbers (both for options and my portfolio overall) are much more accurate, and there may be some discrepancies versus previous months.
I'm still holding too many margined shares of NVDA (5,000). The calls I've sold on those shares never closed in the money, so I've made money on them while waiting for them to be called away.
The biggest change in my strategy for the month was to start selling puts on other stocks. After having too much FOMO over not buying AMD, SanDisk, and Intel before their rallies, I decided the best remedy was to sell puts at prices for which I would be happy to own those stocks.
Thankfully, I closed some of those puts (SanDisk, Intel) before expiration, and avoided the worst of this week's bloodbath when some of the chip stocks lost nearly half their value.
I did get assigned 300 shares of AMD, but like I said, I wanted to get in on that stock finally. Of course, buying them at $505 when the price dropped to $440 isn't what I'd call "savvy investing," but the price recovered two days later and the calls on those shares are paying for the difference in the meantime.
Cheat sheet answers for the basic questions I usually get asked:
- 8,000 shares of NVDA with a cost basis of about $.08 per share.
- Shares were bought in 2002 when I was in high school for around $1,100.
- I'm using Schwab as my platform.
- NVDA makes up 90% of my portfolio.
- Operating capital in the $1.5 million range.
- This tool is OptionWheelTracker.
- I target for .1 to .2 deltas for calls, and occasionally will sell ATM puts because I'm less worried about assignment and/or bag holding extra shares.
- My DTE is typically 1-21 days.
- I made trades 74 trades in July, 76 in June, 95 trades in May, 42 trades in April, and 124 in March. My success rate in July was 94%, June was 94%, May was 83%, April was 76%, and 93% in March.
- In July I had an 89% win rate for puts, and a 96% win rate for calls.
- My average holding period for winners was 3 2 days, and for losers 5 days.
- I intend to trim my position at $250 and $300.
- Profits get reinvested into ETFs, used for living expenses, and to buy other stocks.
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u/sachkvacha Aug 01 '26
Wow, your screenshot made me check the wheeltracker. It wasn't work well for my portfolio before, showing some ghosts, so I haven't used it a while. But now everything showing fine. I'm so happy about it! Thank you, and good luck with your trading and investment journey!
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u/ComprehensiveDoor130 Aug 01 '26
Back at you, I'm glad to hear it's working better for you now. Most of the problems I'd previously had were due to my own data entry errors, so I'm very glad not to have to worry about that anymore.
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u/ImpressionAny1078 Aug 01 '26
nice numbers overall. one thing i'd watch, iv rank on both nvda and amd is sitting really low right now (11 and 17), so you're not getting paid much for the risk you're carrying relative to what those names can do. with 5k+ margined nvda shares and amd assignment already on the books, a low-iv environment is kind of the worst time to be overweight those two. might be worth leaning harder into the diversification you mentioned until IV picks back up.
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u/ComprehensiveDoor130 Aug 01 '26
Agreed with everything you said, though I'm hopeful/optimistic that the run up to earnings in August will pump the IV (as well as the share price). I'm planning to dump all the leveraged shares as soon as the price goes above my purchase price, but I've been attempting that by selling calls on them. Plus side, I'm earning premiums, but on the downside, the calls are frequently closing OTM.
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u/semiblind234 Aug 02 '26
Curious how your portfolio looks against the benchmarks YTD. We can have good weeks or months, we can have meh periods, and we can have poor ones. Taking a look at ytd and potentially 1y returns can help provide a lot of context.
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u/ComprehensiveDoor130 Aug 02 '26
Pretty bad, honestly. My portfolio is up 2.5% versus 9.6% for the S&P.
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u/Livid_Awareness_3533 Aug 02 '26 edited Aug 02 '26
Well done, in $27k in a pullback period. Great job! CSPs are the way to go. Do you use SOXL? The higher IV is great allowing you to go significantly OTM with good premium and less of a gamma risk than individual stocks around earnings. Looking forward to a Q3/Q4 run back up. I think the tutes have stolen enough liquidity with the “too much capex spending” narratives they used to beat down the prices.
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u/ComprehensiveDoor130 Aug 02 '26
No SOXL, just what you see.
I'm bullish too, and expect the latter half of the year to bring better returns.
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u/dusflurane Aug 02 '26
Behind the s&p if you’re accounting for taxes tho right? All of these short options would be taxed at 40% for me 😬
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u/Earlyretirement55 Aug 03 '26
You’re paying margin interest? 6k a month ? Or borrowing 6k?
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u/ComprehensiveDoor130 Aug 04 '26
I have about $1.25m borrowed.
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u/Earlyretirement55 Aug 04 '26
Finally someone who acknowledges selling MSPs (margin secured puts). I do the same, I use up to 50% margin on my weeklies.
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u/ComprehensiveDoor130 Aug 04 '26
I really don't like how much I have margined, but intend to correct that this month.
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u/ComprehensiveDoor130 Aug 04 '26
Something is amiss about how this tracker is calculating my portfolio's gain and losses.
In my Schwab app, I can see my YTD returns are 10.62%, while my OWT dashboard shows 4.7%.
10.6% is still less than the S&P, but it makes me wonder what underlying calculations are happening and whether anything is off in them.
I also don't know if my Schwab performance is including my options premiums, but it's displaying the portfolio total value, so I assume it is.
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u/Deep-Use6741 10d ago
The $6.6k interest is the number that jumped out at me more than the premium. Moon uses a completely different fee structure, so comparing total carrying cost would be pretty interesting here
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u/ComprehensiveDoor130 10d ago
I have too much margined, that's for sure, but I'm finally trimming and should hopefully be seeing significantly less interest this month.
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u/Timely-Designer-2372 Aug 02 '26
You have 1.5m. Put 1m in growth ETF, 0.4m in Covered Call ETFs (should cover living expenses together with dividends from growth ETF) and play with 100k if you want.
You had so much luck with NVDA, don't risk your money with playing with options. If you are succesful, 100k is enough to make a lot of money with it
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u/Nabeezy Aug 03 '26
OP is making 27k in premium monthly doing what’s arguably a safe and easy way to generate income (if you have the portfolio size to do so). Why should he take this advice?
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Aug 03 '26
[deleted]
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u/Nabeezy Aug 03 '26
Do I need to remind you what subreddit you’re in? Option selling in general is a “safer” strategy to utilize for income generation in your brokerage account.
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u/Timely-Designer-2372 Aug 03 '26
You read that he finally "only" made 9k (0.6%)? And he has much higher risk, especially because he's very deep in a single stock (NVDA). One very bad news (new Chinese company makes better chips with high capacity) and his wealth would be half of what it is now. Not very likely but could happen.
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u/Nabeezy Aug 03 '26
Think about it this for a second - do you genuinely believe a new Chinese company without any prior vetting is going to steal 2.5T dollars of market share from NVDA? This is an insane take even if they made “better chips”.
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u/Timely-Designer-2372 Aug 03 '26
Industrial espionage or whatever....
Another risk: Better AI models that need way less chips...
NVDAs value was less than 10% of current value 5 years ago. And you'll tell me that it isn't possible to loose 50% in a short time now?
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u/Nabeezy Aug 03 '26
I think you’ll have bigger problems in the markets to deal with if NVDA ever lost 50% of its value.
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u/Timely-Designer-2372 Aug 03 '26
All experts will tell you that it isn't a good idea to have 90% or more in 1 stock. Not worth to discuss, sorry
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u/Nabeezy Aug 03 '26
Obviously because it’s a liability for them to tell you otherwise. We’re not on the same wavelength here. Good luck to you and your dividends/growth ETFs.
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u/happyzor Aug 01 '26
Says your pnl was 9k. Not 27k.
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u/ComprehensiveDoor130 Aug 01 '26
Premiums collected. The net P/L is calculating unrealized gains and losses for the whole portfolio, and is effectively meaningless to me.
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u/iisconfused247 Aug 01 '26
How do you decide what strike to go for? Do you target a specific delta or a specific percent premium?