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loads of winners like this one are behind that buzz:

This seems to be Reddit's favourite option play, closely followed by credit spreads. How profitable is the CSP/wheeling strategy? People seem to allocate money across the board without looking at the underlying. Are option traders actually taking a view on liquidation risk?

What kind of IV are you selling and how far OTM (%from underlying price at time when you open the position) typically are you?

That's fine but @newwurldmn has shit loads of experience in this space and would (correctly) argue that 1.5 to 2% unlevered normalised monthly return is more like it. Question is what risks you are taking to outperform.

3.1% on CSP or margin? What kind of underlying?

What is behind that 3.1% performance?

I am considering selling covered calls on shares that are about to get redeemed. The underlying SPV will collapse and be liquidated when shareholders are paid out all the cash available. What would happen to said puts if they were long dated and expire after the liquidation date?

I am squarely interested in the delta neutrality side of it, profits and losses matter less. Can you share how you hedge prior to entering a trade? I am guessing conditional or box trades only? When you say execution risk, I am guessing legs of your box getting filled and not others?

That's fair enough. Here is my MTD risk profile by way of comparison: Return 1.04% Ending Vami 1,010.35 Max Drawdown 2.02% Peak to Valley 08/02/21 - 08/11/21 Sharpe Ratio 1.36 Recovery Ongoing Sortino Ratio 2.07 Standard Deviation 0.85% Downside Deviation 0.56% Correlation - Beta - Alpha - Mean...

"The ring of truth"

Some constructive questions for a change: What would happen to your current portfolio (CSPs, underlying equity and covered calls) if a black swan rocks the market and all indices drop 25% within a week? You have room to lose money with your gains to date, but how much will you lose?

And who appointed you to critique him? I am amazed how many people allow themselves to go out of their way to insult and dismiss others as inferior beings on anonymous online forums, while entertaining normal and respectful behaviour in real life. Leave the guy alone and only offer him advice...

Very well done. Keep it up!

Ain't your hard earned money so let him be

I agree that the "called away" part got me confused as well but would rather congratulate the dude and praise his performance rather than shoot him down.

This sounds interesting but you may want to focus on the downfalls of the borrow leg for now and not the arbitrage trade. Under which circumstances can the cost of borrow go up?

OP, well done and keep going. I have a very similar approach and am up 31 percent YTD. Guess who has been shooting down my performance since May? You will find all of the dream team here; https://www.elitetrader.com/et/threads/my-approach-to-selling-puts.358769/

That makes more sense

"Market makers compete for our order flow." Only market makers? Does that that orders hit the exchange as-is and are visible to all?

Some of us have received warning letters regarding a new IBKR margining policy for the highest exposure in one's PM account. I have just seen the margin shoot up about 8% this morning - this is a friendly reminder to the community not to be caught off guard.