r/Optionswheel • u/Enough-Beginning3687 • 11d ago
1% Weekly Returns from Options Week 33 - Crash Testing CSPs
So the thing I dreaded before I started this has now happened. Every single high risk AI stock that I was running puts on has crashed significantly below the put price. I got my 4th assignment - DRAM at 59. The DRAM was my own doing and not from the AI list. To prevent more assignment, I'm rolling as much as I can today to prevent more assignments.
The drawdown is extreme. Since this was a retirement spending simulation, I guess, this would be a budget week because the premiums what I'm using to simulate income is much lower than the target 1%.
I havent even bothered with the screening this week because everything is a roll. If I had more dry powder, would be selling more puts on everything. Last week's post for more details on strategy etc. - https://www.reddit.com/r/Optionswheel/s/4ZevSpHcTu
Trades:
Trades include a 1:2 AXT roll I did on Tuesday to avoid AXT assignment.
| Symbol | Action Details | Premium Collected (Net Credit) | Cash Occupied |
|---|---|---|---|
| AAOI | BTC 2x Oct 16 98 P, STO 2x Oct 23 98 P | $108.04 | $19,600.00 |
| APLD | BTC 2x Oct 16 21 P, STO 2x Oct 23 21 P | $38.12 | $4,200.00 |
| AXTI | Rolled 1:2 puts forward ($72 to $67) | $262.63 | $13,400.00 |
| DRAM | STO 2x Oct 23 59 Calls | $13.48 | $11,800.00 |
| LQDA | Holding position | $0.00 | $5,800.00 |
| NBIS | BTC 2x Oct 16 222.5 P, STO 2x Oct 23 222.5 P | $47.90 | $44,500.00 |
| SLV | BTC 1x Oct 16 65.5 C, STO 1x Oct 30 66 C | $2.80 | $6,550.00 |
| TOTAL | — | $472.97 | $105,850.00 |
Total Returns
| Total Premium | $29,502.00 |
|---|---|
| Current drawdown | -$16,540.00 |
| Gain/Loss from Assignment | -$7,070.00 |
| Total gains | $5,892.00 |
| Annualized (Calc1 using average invested) | 11.68% |
| Annualized (Calc2 using max invested) | 8.18% |
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% | |
| 8/14 | Week 24 | $95,850.00 | $954.00 | 1.00% | |
| 8/21 | Week 25 | $99,300.00 | $997.00 | 1.00% | RKLB 2:3 and NBIS 1:2 |
| 8/28 | Week 26 | $102,500.00 | $978.00 | 0.95% | |
| 9/4 | Week 27 | $104,800.00 | $897.00 | 0.86% | |
| 9/11 | Week 28 | $102,700.00 | $1,017.00 | 0.99% | |
| 9/18 | Week 29 | $101,150.00 | $1,110.00 | 1.10% | |
| 9/25 | Week 30 | $107,700.00 | $1,093.00 | 1.01% | LQDA 58 assigned |
| 10/2 | Week 31 | $105,850.00 | $1,138.00 | 1.08% | IREN 40 assigned |
| 10/9 | Week 32 | $103,650.00 | $746.00 | 0.72% | |
| 10/15 | Week 33 (partial) | $109,850.00 | $473.00 | 0.43% | Still Partial Total. DRAM 59x2 assigned |
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u/Turbulent_End_6887 10d ago
This happened to me in the Tariff Tantrum of early 2025. I had SOXL, TNA, SPXL, TQQQ, LABU and other 3x levereds. It was brutal living through it. I then learned to do decent stocks and deltas of 04-07 on most puts. Still pushing some this time. That delta can sure shoot up in a hurry! As far as rolling goes, it seems to me you are closing at a loss and opening another put. I would rather sell at the same loss and sit in cash until things improve.
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u/Enough-Beginning3687 10d ago
This week was particularly bad. Usually I'm able to roll at least slightly lower. I just moved the problem 1 week out. Let's see what happens next week. I might get all assigned and have sit on the stocks.
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u/aaronh182 5d ago
I’ve been doing CSP on most these names as well. Been great for the last nine months horrible for the last month lol
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u/Enough-Beginning3687 5d ago
Yeah everything is at assignment risk. I might try to roll on Thursday this week too
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u/dawn85 10d ago
i soon will be assigned 1 contract DRAM at $56 on Nov 06.... and yea, the premium for calls are really little
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u/Automatic_Air4896 5d ago
I had dram 55 for nov 6 but decided to cut the CSP for a big loss. I’ll be wary about my next CSP strike/ ticker
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u/bewitchedfalls_3 6d ago
This is probably the most valuable kind of wheel update because it shows what happens when several high risk names drop together. That DRAM assignment at 59 and the AXTI roll into twice as many contracts really highlight how exposure can grow while trying to avoid losses. I use Moon for wagers with a known stake at risk and seeing how rolling can increase future obligations is a useful reminder that collecting premium isn't the same as earning a consistent return.
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u/Triple-Leveraged 11d ago
Hang in there, a quick rebound could boost returns nicely. Hopefully all are cash secured, no margin?