RE: LeoThread 2025-11-20 14-01
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Okay @khaleelkazi... You completely changed my game... Thank you sir...
DId my deep dive and credit spreads are what I have needed to help balance out this wild swinging wheel strategy I have going on with the family hedge fund...
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Love the wheel strategy, but it is not for the short-term minded nor faint of heart for sure.
No, especially if you are trading the high IV names I am trading, lol... It's been a bit brutal the last couple of weeks looking at the stock value, but I have to re-engineer my brain to only worry about the premium flows in that account. If I am in the stock, well, I have stuff to sell covered calls on. It's like if you own a rental house and the home value goes up and down, you still get the rent, so that's really what matters. If you get assigned, well, just keep...
I do my wheel non-traditionally with lower dividend, less volatile stocks. Premiums are less of course, but I usually find a way to get some small but consistent premiums plus usually get the dividends if I am careful.
I call it the wimpy wheel. I usually do it on MO. Nice dividend with small premium gravy.
If it works for you, then it works! I am about to start shifting to more of a credit spread strategy with SPY and GLD I believe, at least start making a transition to a hybrid strategy to protect some capital. The last couple of weeks have been super painful.
I feel ya. I think there is more pain to come. Especially next year. Normally I would buy some hedge positions, but I am just shifting to more cash/yield plays since hedges to the downside get wrecked with every irrational rise.
Yeah, I am about to start moving into defensive mode myself starting next week. Just all depends on how the wheel rolls, but I am going to start moving more into GLD and SPY credit spreads. GLD more so for protection. From the math I am doing, I am going to be able to increase my premium income by a fewX and secure the account value. Hopefully my math properly maths when it comes time to execute, lol.
Smart approach! Small steady premiums add up over time.
Yeah. I try to collect the dividend as often as possible too.