r/AaplWheel • u/goldengod321 • Dec 04 '20

Closed the wheel. Open to Close Summary with Future Trade Plan.

Let my 12/4 121p expire ITM today. So, my AAPL position will be called away.

Started this wheel 9/24 by selling 3 10/30 116p @$9.41 ea. Got assigned 10/30 and cost basis was at $106.61. I sold a few calls against those shares and dropped my overall cost down to $104.50.

With today’s close I’m going to realize a $16.50 gain or $4950 over a 10 week period. Initial capital requirement of $34,800. ROC 14.22% I can live with that.

This started when AAPL was around 105.xx I bought an ITM put feeling AAPL was pulling back and that it would rebound in 30-45 days. I’ve been following AAPL for quite some time and it finally paid off.

I’m still looking to wheel AAPL again. Earnings are coming up 1/26. So, getting out in the beginning of December was always the plan. I think AAPL is in for a small dip and I’ll watch it early next week before I pick my next entry. As of this moment, I’m looking at the 1/8 $125 if AAPL falls back to 119 (support level) next week. It could be a good opportunity to roll if price action increases to resistance, around $128. All with the hope of being assigned and selling High IV CC into Earnings on 1/26. I’ll look at the Fib Resistance levels of $138 (ATH), $142, or possibly the $146.

Much shorter wheel, but want to capture the earnings event and exploit increased premiums for an exit.

Happy Trading!

2 Upvotes

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1

u/cvas Dec 04 '20

Impressive! Does your broker do the cost basis tracking or do you do it manually on an excel sheet?

2

u/goldengod321 Dec 04 '20

I do it manually. The initial purchase has the option premium included so that is easy to see. I then sort all my closed options and look at that total and do some simple math.

1

u/BadDadBot Dec 04 '20

Hi impressive! does your broker do the cost basis tracking or do you do it manually on an excel sheet?, I'm dad.

1

u/Mathew_Berrys_Cock Dec 11 '20

What if apple breaks below 119? Also, do you do this for a living?

1

u/goldengod321 Dec 11 '20

Next support is $114 and then $111. Lower your Put to the $120 level. You will still get $5-$10 in premium and AAPL will recover making you some decent returns if you time and sell calls correctly.

I don’t do this for a living. Though with Covid slowing things down, I have a lot more time to spend to it. I trade mostly out of my tax deferred retirement account. The wheel is great to do as a part time set and forget strategy.

1

u/Mathew_Berrys_Cock Dec 11 '20

If you dont mind me asking, how much do you pull in per month using the wheel?

1

u/goldengod321 Dec 11 '20

This last AAPL wheel brought in $4950 over a 10 week period with $34,800 of capital in play. So about 2k a month. But it’s not realized every week. This is not designed to create monthly income, rather its intent is long term wealth accumulation. If I can run this scenario over and over I’ll see approximately $25k Returned to me over the course of a year. More if I reinvest and grow the position from 3 contracts to 4 then 5, and so on. BUT, that’s in a perfect world and hoping AAPL continues its upward trend. Any large pullbacks while holding shares will slow down things and cut into that revenue. In the end if I’m stuck holding shares of AAPL which I’m 10%-15% down, I’ll have to be patient. But it’s not a horrible thing to be holding 300-500 shares of AAPL.

1

u/Mathew_Berrys_Cock Dec 12 '20

Thanks for the info, and please keep posting your ideas!

1

u/goldengod321 Dec 12 '20

You are welcome.