Wheel update:
Finally got a fill for the NEGG $4 Covered Call on a random volume spike.
Bit frustrating seeing both BBBY and NEGG pop up after already collecting the premium. The BBBY CC is currently worth about 3 times more than the premium I collected. Bad timing. Oh well, if they get called away I am still green.
Not going to be trading any more this week and likely still pretty inactive next week, so that’s why I made my journal entry so early.
Wheel update:
All three of my current Covered Call holdings became worthless today, so instead of waiting for expiration, I bought them back for .01 or .02 each and attempted to roll out to next week to lock in some better premiums.
SFIX and BBBY - Took some good premiums on the $6 and $5.5 strikes respectively.
NEGG seems to have bad premiums for next week, so I might have to wait for some green movement before trying to sell another Covered Call.
All in all I’m happy with how the wheel is progressing. Cost basis is getting lower and lower week after week, and I’m slowly building up cash to begin selling another put. Potentially two weeks of collecting premiums away from that.
Wheel update:
Opened a new CSP for this Friday - another BBBY position with a $5 strike. It’s currently hovering just above that strike and my bet is it maintains above $5 through the end of the week.
But what’s really cool to note is that this marks my fifth active position, meaning the premiums I’ve collected on the other four over time has allowed me to open this one.
BBBY is a bit of a gamble however the strike will lower my cost basis even further, and I think if I get assigned, even the $5 strike covered calls will return an overall profit.
Really enjoying this strategy!
Thotbot/2% account is still in recovery mode. I’ve made a couple payroll contributions towards the account to get back to a renewed starting position. I only played CPI numbers last week and have really been restraining myself from trading SPY more.
Oh forgot to add, opened a covered call on NEGG too take advantage of the somewhat green day today. Cost basis for that pick is almost down to $3.50 now.
Just riding a good wave rn knowing this account has self-funded enough to open a fifth potential position. So far proving the wheel is a pretty sweet strategy.
Wheel update:
Damn all my covered calls were ITM at some point yesterday. Today, they were all OTM. My shares stay with me for another week!
BBBY especially - I had a $5.5 CC and a $5 CSP. Looks like BBBY closed in between there, so I get to keep all the premium. I was really worried about it since it closed yesterday at $5.81. I was getting ready to kiss those shares goodbye.
SFIX closed yesterday at $6.65, and I was selling covered calls for $6.50.
NEGG also had a really red day and closed almost ITM at $3.92 yesterday, but turns out my covered call expires NEXT week, not this one. I must have made a mistake trading that one. It’s now closer to $3.50 so I may try to write some puts there next week. I think I only have enough cash built up for one contract, though.
Looking forward to next week. Cost basis for everything is super healthy, and as I said earlier I have enough cash built up from collecting premiums to open another CSP position.
This is why I always tell people don’t worry about rolling until the very last few days on options with lots of volume. You never know what is going to happen so you can always afford to keep waiting while theta is chipping away at the value.
With BBBY I was especially worried because yesterday some Freeman Capital announced a 6% stake in the company. Huge rally that put the covered call ITM. I think I got lucky there was a 12% pullback today.
But when you’re wheeling based on weeklies, the “last few days” might as well be every day of the week lol
Today’s update:
Wheel:
2% account:
Took a single scalp in power hour. A 07/27 $388p. Made a crisp $5 off that after commissions. Account still in recovery, so not really going into it very aggressively.
Today’s update:
Tried to scalp a SPY put today around 2pm. Unfortunately ended up getting stopped out on that random green spike, which plunged violently right after that, which ended up hitting where my limit sell order was at. 
So I wiped out yesterday’s scalp gain and then some, but I felt like if I had revenge traded I would have lost more. The stop loss didn’t save me this time, though if I had used it more in the past maybe my 2% account wouldn’t be in rehab lol.
Today’s update:
After yesterday, I decided to adjust my SPY scalp profit taker a bit lower. I notice my entires are generally not the best, so this should enable me to lock in more successful trades.
Did a SPY scalp for $3 today. I think I’m going to sit out until tomorrow at this point.
For the wheel, everything is looking good this week. NEGG, BBBY, and SFIX covered calls are all very likely to expire out of the money (I keep 100% of the profits), and the risky RIOT CSP is currently pretty green. It seems extremely volatile though so I hope it stays above $6 for the rest of the week.
Wheel update:
Will be 100% safe on all wheel positions this week. CCs on SFIX, BBBY and NEGG all stayed out of the money, and the CSP on RIOT stayed out of the money as well.
I’m a bit concerned that premiums next week won’t be so great on the CC side, so I will be looking to maybe take a more risky CSP next week with my available wheel funds (~$700)
Wheel update:
Sold BBBY covered call for $6 strike at $0.15, but by the end of the day it looks like I could have collected much more. BBBY is under threat of being called away right out of the gates this week.
I did not get to sell a CC on NEGG today. I couldn’t even get $.05 for a $4 strike for this week, so I’ll have to judge tomorrow if I take one another week out or not. It’s struggling around the $3.40 area.
Also sold 2x SFIX covered calls, bringing that cost basis down more and more.
I have about $700 cash for the account sitting around now and couldn’t decide what CSP positions to open today with it. I ended up trying to get 2x NEGG $3 CSP’s, but even at $0.05 each that didn’t fill. Tomorrow I will have to look at a few other options. I might run my wheel script just for myself tomorrow 
Wheel update:
Got a $0.05 fill for the $4 CC on NEGG this morning. Just my luck, NEGG had a ten cent jump and now the premiums are $0.15. Ugh.
I also took a $5.5 SOFI CSP for this Friday. There’s earnings after hours today, and earnings whisper is not expecting it to be very good, however since expectations are also not good and the fact that IV is about 200% right now, I took advantage of the higher premiums. SOFI will need to drop about a dollar by Friday for this to go in the money.
Fully positioned out for the rest of the week. Just gonna be watching now.
Wheel update:
Bye bye BBBY. There’s 0% chance I don’t get called away when the underlying is $2.50+ above the strike. Given that it’ll be sold at the $6 CC strike, let’s break down the BBBY trade.
I originally picked up BBBY with a CSP at $5.50. Over time, I have collected $88 in premiums. So $88 + $50 = $138 profit, or +25% on the initial $550 investment. That’s really solid!
I’ll have significantly more cash now for next week’s CSPs. We’ll see what the CSP thread spits out on Monday!
NEGG and SFIX both expired OTM for me, so those will continue to be wheeled.
Wanted to do a bit more of a debrief on BBBY, mostly for myself but also to maybe keep selling the wheel strategy to others lol.
So I chose to sell a CSP on BBBY because I saw they had earnings that week, and forecasts were in saying it would likely be a bad one. I figured BBBY had already taken a hit, maybe the bad ER was priced in, and the premiums were quite good as a result. I took a CSP a bit on the lower side, which was 2 or 3 strikes OTM at the time. Felt pretty safe with it.
What ended up happening was the worst case scenario for BBBY. The ER was worse than expected, and the CEO was ousted the same day. BBBY crashes accordingly, and my CSP got assigned.
I only held BBBY for about a month, and for that month, it was more or less very flat and didn’t see much action. As a result, I collected premiums each week for a month. My cost basis after this month was approaching $4.50 per share, having started at $5.50, even though the underlying barely moved.
I couldn’t have seen this week coming, but I collected a decent premium at the start of the week and saw BBBY gain about 70 cents in a day, and almost immediately my $6 strike was at risk of going ITM.
What I definitely did not see was a lot of retail sentiment growing on Thursday after hours, and a 30 fucking percent run on the Friday. BBBY went from about $6 to over $8/share. This again was a worst case scenario for me, since my covered call was at $6, my upper profit limit was capped there. Basically $200 left on the table, which is more profit in one day than what the wheel gathered for me over a month.
But who could’ve seen that 30%+ day coming, with 0dte on the covered call?
So worst case scenario at the beginning of this pick, followed by leaving a lot of money on the table on the final day.
But taking that all in, I’m still thrilled with how this played out. I came out plenty green, I didn’t have to worry about bagholding for a month, I got out at the strike that I wanted to regardless of the extra upside, and now I’ve got cash to start the wheel all over again.
I shouldn’t expect to see 30%+ days on all of my picks. If I wasn’t wheeling BBBY, I doubt I would’ve played options and gotten a $7+ strike call on it yesterday and made 1000% on it.
The wheel was the safer, much more consistent play and if BBBY didn’t blast off from retard strength today and instead stayed flat, I’d be continuing to collect premiums on it and earning consistent passive income.
Thank you for coming to my TED Talk.
Love the breakdown on BBBY. Solid play and it’s hard to argue with 25% in a month selling CCs!
Wheel update:
I tried to capitalize off the morning run that a lot of stocks had. SFIX was way up, so I was able to sell 2 CCs on them with a strike of $7.50, which was the strike I originally got assigned at. The premium was excellent, too! Cost basis is now beneath $6.
I tried to do the same with NEGG, but unfortunately did not get a fill today at the price I wanted.
I looked at BBBY again to potentially start up a CSP. Turns out, I got a $8 CSP, which is currently over $3 out of the money, and collected better premiums than I was when BBBY was flat. I feel I’ve got some breathing room and now just have to hope the meme momentum lasts further into the week.
I still have plenty of cash to open CSPs but will have to try again tomorrow for some decent fills. I’m considering some more NEGGs. I might have to run my algo again to find new picks tomorrow though.
Wheel update:
All priced out for the week now that NEGG covered call finally filled. My cost basis is now just a bit over $3 for that, which means a 33% gain if my $4 strike gets called away.
My positions for the week:
2%/challenge update:
Took a $15 CPI gamble near end of day yesterday on SPY. $421C 08/10. This was sold right at the opening bell for $76. Really nice that worked out for me. I am still saving up cash to get back into more regular trading, so the bulk of my account is just sitting in cash still.
Wheel update:
The good news is that my CSPs on BBBY and NEGG all expired worthless! Woohoo!
The bad news is that it looks like SFIX is going to be called away. Had a $6.50 strike.
I don’t have an exact breakdown of how much I collected from SFIX unfortunately. It was one of the first CSPs I grabbed and I hadn’t set up my tracking spreadsheet at that point. I do know that I got it at $8.00 and I had to sell CCs at a loss to collect any sort of premium. I estimate my cost basis was around $6.00 or so, so I really didn’t make much with this one. $50 ish, probably less.
This is a case of the wheel gone bad I think. The price was way down below my cost basis for a very long time, so I had to be aggressive with the CCs. Now SFIX had a great rally this week so by the time I brought my cost basis down, I have to say good bye to them lol.
This frees up a significant amount of cash for CSPs next week.
The only holding I have going in to next week is NEGG.
Wheel update:
Got a $3.5 NEGG CSP today for a simple $10 premium, and also took a $4 CC earlier this morning for another $15. However, NEGG then had a +10% day so I put myself at risk of getting called away again and left some premium on the table. We’ll see how the rest of this week goes. In terms of cost basis, I am now below $3/share, so getting called away at $4 is really no worry for me.
I tried to use the rest of my cash on PACB $8 and $7.5 CSPs. Unfortunately, neither filled. By the end of today, the PACB was down 5% and the $8’s are much more riskier to get, but the premiums really didn’t change much. Volume just wasn’t there today and the spreads weren’t very good. I was aiming for 5% earnings on either one of them but they didn’t fill. I’ll have to try again tomorrow, and maybe calculate again for new opportunities.