The process of recovering from a market downturn when trading the options wheel can have a feeling of relief when things start going back up. There certainly are emotions involved when your account value is going down because of share prices declining on your positions. There are also emotions with seeing the value of your account go back up.

You may notice that not all of your positions will recover as quickly as others. That’s one of the reasons to have some diversification in your positions as if the recovery process is longer for some positions you still have money and positions to work with that recover more quickly.

You might notice out of our positions from this week that our TSLL and SPCE calls were able to assign because the share prices of these tickers had risen above our strike prices. Where it is going to take a little more time for the share prices of HIVE and QUBT to recover.

Week 32 Results

We started the week off with the following positions:

• 100 shares each of HIVE, QUBT, SPCE and TSLL
• HIVE $3 puts expiring 12/5 – 2 contracts
• SPCE $4 call expiring 12/5
• TSLL $20 call expiring 12/5
• QUBT $16 call expiring 12/19

On Monday my hope was that the market would continue on it’s upward trend from the week before. I started by opening a new position by selling a put on MARA with a strike price of $11 and expiration of 12/12 (11 DTE). I collected a premium of $58 for this put. I decided to wait to do anything else because if I needed to roll either my TSLL or SPCE calls I would collect additional premium for those at the end of the week.

By Friday morning it was evident I would be able to let both my TSLL and SPCE calls get assigned. I was also able to let my HIVE puts expire. I’ll probably open new puts on HIVE on Monday with the same strategy of trying to lower my average cost basis on my HIVE shares.

I also opened another new position on Friday by selling a put on RIOT with a strike price of $14 and expiration of 12/12 (7 DTE). The premium collected on this position was $25. The percent of premium on this put was lower than I typically target. There are a couple of reasons for this. One was that it was a shorter duration position of only being 7 DTE rather than my typical 11 DTE. I also went with a lower delta to reduce the risk on this position.

Here is a list of my trades since the beginning of October:

Summary

For week 32 I collected a total of $82.92 in net premiums and my target for week 32 is $86.90. Total premiums collected for the first 32 weeks is $2,747.28 and my target premiums for the first 32 weeks is $2,500.95. So overall I’ve been able to stay mostly on track still only using less than 50% of my available collateral in most weeks.

Here is a screenshot of my ending account positions as well as the weekly summary:

How to Generate Consistent Returns Through Options Trading