I’m planning to switch over to selling options/collecting premiums. I’ve had my fun with LEAPs over the last couple of years and have built up enough money ($75k) to where I think I can start taking a more conservative approach of CCs and CSPs. I’ve got a day job and a young family, so I don’t have the time and/or mental capacity to really track this stuff on an hourly or even daily basis. I also don’t nerd out with overly complex strategies and in depth analysis of the various metrics/indicators. My thought was finding a few large cap / blue chip stocks and implementing the wheel strategy with week long contracts. I would set up an excel sheet to track each of my contracts making note of when the options are exercised/called away to ensure that I have a proper ledger of missed gains to determine if my overall strategy is actually profitable (compared to if I just owned and didn’t sell the underlying stock).
All that said – for those attempting a similar approach as me with week long contracts, what stocks do you typically go with, what’s your usual theta decay range, chance of profit and have you found success with the wheel strategy?
Posted by DateKey4966
2 Comments
Walk over to r/thetagang
Wheel feels conservative, but it’s not risk-free, you trade upside for small premiums and still eat downside during drawdowns. In strong runs, CCs cap big gains.