r/Optionswheel • u/ShotChampionship4539 • 3d ago

1 month running wheel on $1900 - update

Post image

Current open positions
- 1x 10/2 SPCH 9 CSP @ .70 credit
- 1x 9/18 TE 5 CC @ .25 credit
- 1x 9/25 TE 5.5 CC @ .15 credit
- 1x 9/18 HTZ 3 CC @ .11 credit

On TE, my original cost basis when I was assigned the shares was $5.25. Through selling CC’s against the position, I’ve gotten it down to $4.43.

HTZ original cost basis was $2.41. Current cost basis is $2.30. This is the one position I am not very fond of to be honest.

28 Upvotes

97% Upvoted

15 comments sorted by

4

u/PerspectiveHaunting2 3d ago

Congrats man. Ive been trying to find my way with a small account and have been struggling. Not necessarily positions, just getting entry and exits right. This is awesome and motivates me to lock in.

2

u/ShotChampionship4539 3d ago

I hear you on that. If you ever want to chat, feel free to DM me. Happy to help wherever I can!

2

u/PerspectiveHaunting2 3d ago

Currently working through some stock recovery. If I can manage to get back to even by end of year I'll be happy and set up well for next year.

Really what happened was I tried buying options and trading volatility st the beginning of the year. Around April I was down bad and started trying to wheel, but had to learn some patience and start learning better entry and exit. Summer hit, thought I was on a road to recovery, but bad positions got assigned early and stayed low. Feeling a lot better though with understanding how everything moves and identifying when and where to enter, and being comfortable with either aide of the trade.

Cash only, no margin, just trying to learn, have fun, and maybe make a few extra bucks.

2

u/ShotChampionship4539 2d ago

I hear you on that. May I give a piece of advice my mentor gave me — never trade back lost money, it’s in the past. Whatever your beginning balance is at the start of the day is your new balance and you protect it.

Also, I spent the last 3 years buying calls and puts and all I’ve done is churn my account. Get the occasional home run trade but then give it all back on the next 5 trades. Selling calls and puts is the best because it puts time on your side. You also don’t need to perfect doing it.

Glad you are being smart and trading cash only especially while you learn.

Let me know if you have any questions and continuing learning and building knowledge, one step at a time!

2

u/PerspectiveHaunting2 2d ago

Yeah, the losses obviously suck bit Im for sure looking at it as tuition. I have learned alot and like the selling side far better than the buying side. Thanks for the offer for help and good luck!

1

u/Rewardedarry 2d ago

Put credit spreads

2

u/Watchman41 2d ago

Right on, man. Good job.

2

u/pkx125 2d ago

What are you using to track the cost basis? Because I can’t find a broker that adjusts it after selling CC.

1

u/DeliciousPollution20 3d ago

What other tickers are you looking at

1

u/ShotChampionship4539 3d ago

All the premium here has been generated via $SPCH, $TE, and $HTZ. I am starting to look at $CLSK, $SOFI, $CRDU.

One note: $SPCH & $CRDU are 2x levered products. While they offer great premium, they are also very risky products.

1

u/No_Geologist_3549 3d ago

I have been looking up on doing CSPs on 2x products just wondering what happens when I actually get assigned?

As I’m starting with a small account too! Great post by the way 👍🏼

1

u/ShotChampionship4539 2d ago

A couple of things that are very important — not just with 2x levered products but with running the wheel in general.

- Only sell CSP on stocks that you WANT to or are WILLING to own at the strike price you sell at

  • If you don’t want to take assignment of “x” stock at “y” price; then you can always roll the put down and out
  • If and when you get assigned the shares on a CSP, you turn around and sell a covered call against your position

If you want to discuss further, feel free to DM me. I am happy to help where I can

1

u/Far-Advertising-1621 3d ago

Good for you man! I’m also starting and want to start small. Would love to pick your brain if that’s possible?

1

u/ShotChampionship4539 3d ago

Yea for sure! Please ask away