bill gates selling 1 call on apple is pretty cash secured!
2024 - Modified Wheel Strategy using AI Signals
- Thread starter frostengine
- Start date
bill gates selling 1 call on apple is pretty cash secured!
lie!
Do I have this right?? You have back tested for about 10 years. You have forward tested (paper trades) for six months. And, you have live tested for two days!!
In none of this did you take into account; MMs, dark pools, bid/ask discrepancies, black swan events (market dropping 20% on expiration date).
Go for it...Let's see what happens.
In none of this did you take into account; MMs, dark pools, bid/ask discrepancies, black swan events (market dropping 20% on expiration date).
Go for it...Let's see what happens.
Sold another $1,653 in premium today. Closed out a few contracts to lock in $220 in premium from last week. Currently, the most at risk position is 2 short puts on AAPL that has gone ITM.
This position was entered last Thursday, so nothing to do yet. If the position is still ITM Thursday afternoon, I will only roll or take assignment if the system generates a long signal on AAPL Thursday.
This position was entered last Thursday, so nothing to do yet. If the position is still ITM Thursday afternoon, I will only roll or take assignment if the system generates a long signal on AAPL Thursday.
Sold $1,575 worth of premium and closed some positions to capture $481. 2/3rds of the premium sold today were calls.
I have 2 main positions that are in the money. Both of which reach the 7 day mark tomorrow. AAPL and LOW. If I don't get a signal on them tomorrow, I will have to close them for a loss.
I have 2 main positions that are in the money. Both of which reach the 7 day mark tomorrow. AAPL and LOW. If I don't get a signal on them tomorrow, I will have to close them for a loss.
This thread seems a bit dead. If there is no interest, I can discontinue.
Today's update. I rolled positions in AMZN, GOOG, and LOW. This resulted in a "loss" of -$1,229. However, due to the premium sold as part of the roll, today's premium sold was much higher. I sold $3,320 in premium.
In addition to the premium sold, I took assignment on AAPL. However, until this position is closed out, I won't track it here as part of these numbers.
Today's update. I rolled positions in AMZN, GOOG, and LOW. This resulted in a "loss" of -$1,229. However, due to the premium sold as part of the roll, today's premium sold was much higher. I sold $3,320 in premium.
In addition to the premium sold, I took assignment on AAPL. However, until this position is closed out, I won't track it here as part of these numbers.
Hi, @frostengine I use the wheel strategy and benefited a lot from it. I am glad to come across your post.
One presumption for the wheel strategy is that you have a "bullish" view on the security. You would not mind owning the security.
I think your intuition makes good sense. Mechanically always allow the option to be assigned and sell call and put right after when a previously put or call were assigned, certainly would not be the best practice when the underlying security is on a long term trend, and more so when it is held under a taxable account.
The unlockingalpha seems to generate very short term signal, which may not work well with the wheel strategy's overall long term holding premise. A mid-term signal based on 4h chart may work better, just a thought.
I am very curious if you have followed up with your study and what is the your finding....?
One presumption for the wheel strategy is that you have a "bullish" view on the security. You would not mind owning the security.
I think your intuition makes good sense. Mechanically always allow the option to be assigned and sell call and put right after when a previously put or call were assigned, certainly would not be the best practice when the underlying security is on a long term trend, and more so when it is held under a taxable account.
The unlockingalpha seems to generate very short term signal, which may not work well with the wheel strategy's overall long term holding premise. A mid-term signal based on 4h chart may work better, just a thought.
I am very curious if you have followed up with your study and what is the your finding....?
What happens if after getting assigned after first time you holding the underlying and then overnight underlying tanks in a very very bad way ?
What happens if you had just purchased the stock instead? The same thing...except at least when you sold the put you got paid for it.
Basically selling puts is a way to get paid for being wrong.