1% Weekly Returns from Options Week 23

This week was great. Almost everything recovered and drawdown dropped. I didn't expect to have time today so I made a few trades yesterday and some today. Last Week's post: https://www.reddit.com/r/thetagang/comments/1vbttj9/1\_weekly\_returns\_from\_options\_week\_22/ **First, the strategy:** \- Use a screener to give me a list of top 20 low delta options for next week \- I either \- a. Roll my current options - I do this if I can still get 1% for rolling or if the option is ATM/ITM and I have to roll. I always roll for credit. \- b. Close a current option and pick something else from the list that I like \- I try to do this every Friday. However, if I'm busy on Fridays, I'll sometimes do this on Thursdays. **Screener Output:** |Underlying|Strike ($)|Stock Price ($)|Bid ($)|Delta|Distance OTM (%)|Return (%)| |:-|:-|:-|:-|:-|:-|:-| |**NBIS**|$136.00|$184.33|$1.40|\-0.073|26.22%|1.03%| |**COHR**|$285.00|$372.77|$2.90|\-0.090|23.55%|1.02%| |**SMCI**|$24.00|$30.15|$0.25|\-0.092|20.40%|1.04%| |**LITE**|$710.00|$890.12|$7.20|\-0.098|20.24%|1.01%| |**HIMS**|$24.50|$30.65|$0.26|\-0.098|20.07%|1.06%| |**AXTI**|$65.00|$85.74|$0.85|\-0.100|24.19%|1.31%| |**CRWV**|$69.00|$86.30|$0.79|\-0.101|20.05%|1.14%| |**AAOI**|$113.00|$141.53|$1.15|\-0.103|20.16%|1.02%| |**RKLB**|$65.00|$79.42|$0.67|\-0.104|18.16%|1.03%| |**ASTS**|$56.00|$68.81|$0.66|\-0.110|18.62%|1.18%| |**SNDK**|$1,025.00|$1,223.46|$10.70|\-0.115|16.22%|1.04%| |**BE**|$180.00|$216.52|$2.00|\-0.118|16.87%|1.11%| |**ALAB**|$280.00|$334.78|$2.88|\-0.119|16.36%|1.03%| |**IREN**|$32.00|$38.01|$0.36|\-0.123|15.81%|1.13%| |**SKHY**|$117.00|$135.96|$1.25|\-0.130|13.95%|1.07%| |**SPCX**|$107.00|$122.36|$1.09|\-0.132|12.55%|1.02%| |**LUNR**|$12.50|$15.63|$0.15|\-0.136|20.03%|1.20%| |**WOLF**|$25.00|$30.07|$0.31|\-0.140|16.86%|1.24%| |**APLD**|$24.50|$28.29|$0.25|\-0.140|13.40%|1.02%| |**USAR**|$15.50|$18.52|$0.17|\-0.143|16.31%|1.10%| **Trades this week:** |Symbol|Action|Premium Collected (Net Credit)|Cash Occupied| |:-|:-|:-|:-| |**SKHY**|Roll Short Put (BTC Aug 7 116 P / STO Aug 14 118 P)|$119.52|$11,800.00| |**NBIS**|Roll Short Put (BTC Aug 7 136 P / STO Aug 14 146 P)|$299.03|$29,200.00| |**IREN**|Roll Short Put (BTC Aug 7 30.5 P / STO Aug 14 31.5 P)|$31.52|$3,150.00| |**DRAM**|Roll Short Put (BTC Aug 7 43 P / STO Aug 14 44.5 P)|$89.05|$8,900.00| |**ASTS**|Buy to Close (BTC Aug 7 63 P)|\-$3.01|$0.00| |**AAOI**|Roll Short Put (BTC Aug 7 62 P / STO Aug 14 113 P)|$113.52|$11,300.00| |**RKLB**|Roll Short Put (BTC Aug 7 73 P / STO Aug 14 65 P)|$202.55|$19,500.00| |**APLD**|Roll Short Put (BTC Aug 7 28.5 P / STO Aug 14 26.5 P)|$102.00|$7,950.00| |**AXTI**|Sell to Open (STO Aug 14 65 P)|$98.53|$6,500.00| |**SLV**|Short Put Position|N/A ($0.00)|$6,550.00| |**TOTAL**|—|**$1,052.71**|**$104,850.00**| **Total Returns** |Total Premium|$20,207.00| |:-|:-| |Current drawdown|\-$1,554.00| |Gain/Loss from Assignment|\-$799.00| |Total gains|$18,653.00| |Annualized (Calc1 using average invested)|56.73%| |Annualized (Calc2 using max invested)|37.68%| **History** ||Week|Capital Invested|Premium Made|Return %|Notes| |:-|:-|:-|:-|:-|:-| |3/6|Week 1|$0.00|$0.00|0.00%|| |3/13|Week 2|$13,100.00|$131.00|1.00%|| |3/20|Week 3|$19,850.00|$203.00|1.02%|| |3/27|Week 4|$41,500.00|$596.00|1.44%|| |4/3|Week 5|$34,150.00|$353.00|1.03%|| |4/10|Week 6|$43,350.00|$462.00|1.07%|| |4/17|Week 7|$53,800.00|$573.00|1.07%|| |4/24|Week 8|$70,400.00|$811.00|1.15%|| |5/1|Week 9|$103,450.00|$1,093.00|1.06%|| |5/8|Week 10|$97,400.00|$1,040.00|1.07%|| |5/15|Week 11|$102,800.00|$1,077.00|1.05%|| |5/22|Week 12|$98,600.00|$1,170.00|1.19%|| ||Week 12.5|$106,100.00|$475.00|0.45%|Bonus round| |5/29|Week 13|$106,100.00|$1,133.00|1.07%|| ||Week 13.5|$115,900.00|$336.00|0.29%|Bonus round| |6/5|Week 14|$105,750.00|$1,053.00|1.00%|| |6/12|Week 15|$110,700.00|$1,146.00|1.04%|| |6/19|Week 16|$111,850.00|$1,105.00|0.99%|| |6/26|Week 17|$108,350.00|$1,045.00|0.96%|Got SLV 65.5 assigned| |7/3|Week 18|$111,550.00|$1,126.00|1.01%|| |7/10|Week 19|$102,850.00|$1,111.00|1.08%|| ||Week 19 Bonus|$108,550.00|$98.00|0.09%|APLD 1:3 to avoid assignment| |7/17|Week 20|$104,350.00|$842.00|0.81%|| |7/24|Week 21|$111,500.00|$1,148.00|1.03%|RKLB 2:3 to reduce strike| |7/31|Week 22|$105,660.00|$1,021.00|0.97%|| ||Week 22 bonus|$99,960.00|$7.00|0.01%|ASTS 2:1 to reduce exposure| |8/7|Week 23|$104,850.00|$1,052.00|1.00%||

45 comments held Reddit says 0 on reddit ↗

u/GokuIt 2 5 days ago

Niceee
u/Enough-Beginning3687 OP 1 5 days ago

Thanks!
u/GokuIt 1 5 days ago

Trying to analyze your trades. Let’s say DRAM, How many contracts are you taking? I don’t see a way to get $89 premium for your strikes
u/Enough-Beginning3687 OP 1 5 days ago

1. I post all my trades as I make them here - https://www.reddit.com/r/TheRaceTo10Million/comments/1vh6kld/1\_weekly\_returns\_from\_options\_week\_23/ I post to r/TheRaceTo10Million before trading and here after
u/I_like_code 6 5 days ago

I feel this would be a lot to manage and freak out about lol. If it works it works though. I stress out about keeping up with 4 different stocks. lol.
u/Enough-Beginning3687 OP 4 5 days ago

I don't do much. I'm trying to get the time I spend on it down to 15 minutes a week. It probably is that much already but I spend a lot of time composing these reddit posts
u/Educational-Region98 1 5 days ago

Are you not worried about it blowing up? Kind of curious what kind of testing you have done.
u/Enough-Beginning3687 OP 3 5 days ago

That's why no margin. Blowing up would an event that caused everything to be assigned.
u/Educational-Region98 1 5 days ago

Ah makes sense.
u/I_like_code 1 5 days ago

Don’t get me wrong I’m not hating. I just have trouble keeping up with the companies and other things that happen in the financial event calendar for my current positions. I normally stick to just Nvda, Xsp, and SO (this one is mainly because I’m opening a long position not just an options play). I just have to keep up with things affecting Nvda and for Xsp I just keep my eye on financial events like FOMC and financial reports. I have opened other positions on other companies but I normally limit how many different companies at a given time. Normally I get around .6 percent per week.
u/Enough-Beginning3687 OP 1 5 days ago

Yeah on the other 90% of my portfolio which I have covered calls on, I get 0.25-0.75% for the most part. I do due diligence on a company once and then periodically but I dont follow everything all the time. That's just noise.
u/masala_chaii 1 5 days ago

What kind of screener do you use?
u/Enough-Beginning3687 OP 4 5 days ago

I use an AI - brokerbotics.com \- I feed it this prompt every week: find me 20 unique lowest risk puts to sell on stocks expiry: next week strike at least 8% from stock price return at least 1% sort by delta furthest away from stock price minimum strike price 10
u/on9roger 1 5 days ago

Why are you using puts that expire in a week instead of the recommended 30-45 days out?
u/Tephros83 1 5 days ago

Weeklies give more profit per time and if it goes bad you can just roll assuming sufficient liquidity, or accept assignment, and the risk window is lower. 30-45 days is lower maintenance, and allows for generally safer far OOM positions, though the second is largely offset by having more time at risk anyway, depending on the stock.
u/Enough-Beginning3687 OP 1 4 days ago

1. In the current market I don't want to hold that long. Like this week I swapped out ASTS for AXTI. I can do that with any of them at whim. 2. weeklies are more profitable. 3. The perceived risk is lower. Look at what would get you 4% in a month vs 1% in a week and ask yourself the question - how likely is it that it can get there in that much time. While the actual risk might be similar, the perception of risk just feels higher to me.
u/on9roger 1 4 days ago

You got me thinking with 2. I’ll try it out.
u/piper33245 1 4 days ago

What makes you think 30-45 days is the recommended?
u/on9roger 1 4 days ago

Thats what I keep reading about theta decay. It goes faster in the initial stretch of that \~45 day period. I’ve seen posts like this: https://www.reddit.com/r/thetagang/s/crrV… Please correct me if I’m wrong so I can adapt my strategy.
u/piper33245 1 4 days ago

I’d read thru the top comments on that thread you posted. There’s some good info both for and against. 45dte isn’t bad, but it also isn’t the only thing out there. There’s pros and cons to everything. Namely that the smaller the dte, the more theta but also the more gamma, meaning if you’re short, you make money off theta decay more quickly but when trades go bad they also go bad more quickly. Longer dte reduces both of those, a reason 45dte is popular, it feels safer. Higher dte can be used as a stock replacement strategy or also as a volatility play, Vega exposure is generally higher with longer dte. Then there’s combos of everything: calendars, diagonals, other spreads, etc. Tastytrade popularized opening 45 dte and selling at 50% profit or 21 dte, whichever comes first. Because they’re so vocal about it, a lot of people think that’s the best. But a lot of data shows it’s just a fairly safe way to have a series of slow wins and losses, that simply keeps you trading so tasty can keep making commissions off of you. Moral of the story, learn as many different strategies as you can and try to implement a system that works for you both financially and psychologically. Don’t get stuck in one thing because the internet told you it was the “right way.”
u/Enough-Beginning3687 OP 1 4 days ago

I also generally see the whole 45 dte is safer thing. For buying options, I find that ok, selling options where the other party has assignment rights feels uncomfortable to me at 45dte. Tasty commissions are also too high. 1$ to open. I'm paying 42c max at fidelity per contract and closing below 65c is free. So even if I have to pay on both sides, it is 84c max per contract. Sometimes I wonder if I should move to Robinhood for the number of trades I place because it is after all free or public where they pay you to trade. But the effort is too big.
u/on9roger 1 4 days ago

Thanks for those inputs. I guess I’ll be experimenting with some 7dte and 21dte puts in the next few weeks.
u/Cool_Fly_2030 1 4 days ago

Is this a smooth shill rn lol
u/Enough-Beginning3687 OP 1 4 days ago

😂 - ha full disclosure, I'm getting to use it for free until the end of the year. The founder found my first post on reddit where I mentioned it and was complaining about it and gave it to me for free for the honest feedback and they've since worked really hard to fix any issues I've faced.
u/Cool_Fly_2030 1 4 days ago

Haha nice
u/Enough-Beginning3687 OP 1 4 days ago

Yeah It's been nice. When I first started the response to that prompt worked about 50% of the time and it took 3-4 minutes. Now it works 100% of the time and takes 25-30 seconds. Previously prices used to move by the time the prompt executed and I started placing trades. Now I've gotten it down to a science with their chrome extension open with the fidelity tab in the browser. I'm essentially just racing to complete all the trades that I know I'm going to do as fast as possible.
u/Cool_Fly_2030 1 4 days ago

Do you do any filtering on business fundamentals or pure rich premium screening and you don’t care about the names? What about macro event calendar, earnings calendar? Etc
u/Enough-Beginning3687 OP 1 4 days ago

I do it one time before I initially add a stock to my trade list. Not continuously or anything.
u/Cool_Fly_2030 1 4 days ago

Gotcha. How many stocks do you track in your list?
u/Enough-Beginning3687 OP 1 4 days ago

7-8 for this. 20ish overall. I think.
u/dominikabra 1 5 days ago

I see your posts and I'm in awe. Congrats for the results and consistency. Hats off. I'm really wondering if this performance is sustainable in the long run. I have a similar capital invested that could be freed for this wheeling, but I'm afraid this may be only possible due to the current market conditions and last year's of rally.
u/Enough-Beginning3687 OP 1 5 days ago

I'm trying it out for a year at least. I feel there is aways something that is in these conditions?
u/Tephros83 1 5 days ago

This is interesting. The premiums seem really high for such small deltas. The names are generally quite volatile though. I would be worried about one bad burn wiping out months of profits. And when the name is speculative, it may never recover for a wheel or something like that. But so far, so good it seems. I do something a little different, more focused on stocks that rarely go down but still have decent premiums, and yes weeklies are better. Why not use put ratios, though? Maybe it wouldn't work here because, it is truly outliers that are being identified to trade so the next strike may be priced more appropriately.
u/Enough-Beginning3687 OP 1 4 days ago

This is why I'm doing it on straight cash. No margin. The worst case is everything gets assigned. I don't like ratios or spreads. spreads have wiped put weeks of gains in a day. ratios are too complex. This is straight up premium on cash with the worst case being all assignment.
u/Tephros83 1 4 days ago

The worst case isn't just assignment; it's assignment on a stock that falls hard and never recovers. That's possible with almost anything, but much more likely with volatile speculative names. Your screen is specifically selecting stocks where far-OTM downside insurance is unusually expensive. That premium may be rich enough to give the strategy positive expectancy, but it's rich for a reason: the market is pricing substantial crash/tail risk. A single permanent 50–80% repricing could erase a lot of 1%-premium weeks. So given this, the simplest suggestion would be to limit position size, maybe 10%. More complex would be to have some kind of quality/correlation filter system.
u/Enough-Beginning3687 OP 1 4 days ago

Before I add a stock to my actual trades from the AI list, I do some level of due diligence on it. Growing revenues, growing profits if profitable and some basic fundamental research. There are some exceptions like ASTS (which I got out of this week where I didn't do much). I will also not pick anything related to crypto (MSTR shows up in the list often), leveraged (SOXL/S have shown up on the screener) or substanceless hype (quantum) Yes a lot of the stuff is AI related and IMHO, we're only getting started here. Living in the world of AI, a somewhat less technical product guy like me can build anything he wants, my engineers are producing at lightning speeds, teams are getting smaller and making more. We're getting started. Hyperscalers cant spend fast enough to build capacity fast enough. Everything is sold out for a year. There will come a time when this all will plateau, but that's not here yet. And once the AI race is over 2-3 years from now, the robotics race or quantum race will begin.
u/Mxshaal 1 4 days ago

I have been a follower and a cheerleader for you for sometime! Quick question how is the liquidity on those? I have a screener on the lowest delta weeklies and what’s showing me are options with literally zero open int.
u/Enough-Beginning3687 OP 1 4 days ago

yeah liquidity is sometimes horrible. Like the AXTI put I sold today was super annoying with wide bid ask spreads and I had to keep adjusting until it executed. But that is generally a good sign. If you can get execution with poor liquidity, the stock is unlikely to go there. If it does go there, liquidity improves instantly making defensive rolls easier.
u/takashi-kovak 1 4 days ago

Great work! How are you calculating your "Total Gains". Is this just premium collected or actual PnL (i.e. your closed your open positions i.e. STO --> BTC). I think it is the latter but want to confirm. If it is the former, than that is a wrong calculation, as premium collected is liability and can be only realized as profit/loss once closed.
u/Enough-Beginning3687 OP 1 4 days ago

Total gains = premium collected - current value of open positions - losses related to assignment.
u/TastyTrading 1 4 days ago

Do you track all your wheel progress on ThetaPal? or something else?
u/Enough-Beginning3687 OP 1 4 days ago

No, details just on Reddit. I'm tracking week by week totals on a spreadsheet.
u/TastyTrading 1 4 days ago

oh wow, sounds like a lot of manual work. props to you. i just sync mine automatically nowadays
u/Enough-Beginning3687 OP 1 4 days ago

Yeah brokerages should just offer this by default. My spreadsheet is just 23 rows that I copy posted into the post.
u/Different-Sample4898 1 4 days ago

Did you consider the earning calls that most of these companies have over the following week?