Thursday, December 23, 2021

Learnings from Wheel


 Today is Christmas eve, and my wheel should only bring in around $353 this month

if I do this the long term, how do I get more consistent earnings monthly?

One thing I can improve on is to ensure I do not wheel stocks that have prices that are too high

for example, I got assigned TDOC at $140

each portion of my short puts is around $10k

TDOC crashed to around $100

but I am unable to Fly Rescue Mission

because one portion of FRM is around $3.3k, which is one third

in other words, I cannot make money selling puts at 70% drop in price

and also lower my cost basis

so for a $10k trade, the max price of a stock should be around $50

so that when it crashes 30%, the price will be at $35, which I am able to sell puts at.

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