Yes we just wanted to bring to @winstonwee's attention things that we see in the wheel and caution him that the wheel is not as profitable as he thinks.
I have refuted your lengthy explanations twice and you still don't get it. You don't even attempt to address any of my points. It's not so hard to understand. If you are looking only at what will happen in, say, a month from now, then, whenever you set a limit order to buy a stock at X, you'd be better off selling a 1-month put at strike X instead. Do you agree with this statement, yes or no? Things are different if you look at the value of your account in-between, but if you ignore the risk of a margin call, then selling the put is strictly superior to buying the stock directly. If you don't get something this basic I don't know what else to say, you just refuse to reason or are incapable of basic mathematical thought. For the last time, claiming that the wheel forces you to buy high does not make sense because the opposite occurs: when you are assigned the put, you are getting it at a lower price than was possible when you decided the underlying was a good buy.
Oh hi snowflake. Can't take criticism can you? Got put down too much in your life for being a failure? This is your 3rd post ever: https://www.elitetrader.com/et/posts/5329090/report Every single post after has been in this thread. Do you really expect us on ET to believe all you were browsing the internet and all of a sudden you found ET and got so triggered you posted multiple times in a day on this particular thread? LOL only you believe you are not a retard. We can smell your bullshit a mile away. Google Dunning Kruger. That's you.
Jsop is a moron but you have the dumbest post in this thread. Selling a put is not always superior to buying stock. If you don't get something this basic I don't know what else to say, you just refuse to reason or are incapable of basic mathematical thought.
yes I agree with you instead of setting a buy limit you can sell a CSP put at 40 the disadvantage is before expiration the stock dip below 40 and rebound then I wont get the shares but hey when I am doing wheel my main objective is not to pick up the stock I hope I never had to pick up any stock and just keep pocketing the put premium I would be happy and do it all day round
you have obviously didnt know what my plan was I have roll my nio put 50 down to 45 (was this the best choice nobody know). I roll because I change my mind, I change my mind all the time. and I get paid to change my mind for rolling it further away to save you time and agony you can skip to the 10 mins part and watch this now again you are using the yesterday data to see what could have been better. If I can have the benefit of hindsight I would do even better Now back to my sell call on 22nd Feb I sell the 58 call for 3.10 (I get to keep the premium regardless of what NIO does) this is opportunity cost to make extra $3.10 (of course if I were to know NIO is going to 68 on next wednesday than I wouldnt sell the call, but I didnt have the next week price data available to me) and if NIO were to go up near 58. I could change my mind again. or I could be contented with 1 full cycle and take a break and restart another wheel. All this sell call and sell put bring extra premium to lower my price and that is what the whole wheel is it is not the best and not the holy grail it work on uptrend market we all know that
It seems you can't read. I've said explicitly several times it is not always superior, including in the post you quote. It is superior if you look at the payoff on expiration day, though, which is exactly what I wrote. And JSOP's argument was bullshit.
If you have a point, just make it. I was referring to the case of putting a sell order at about the current market price on a given day (so effectively a market order), not a good-till-cancel limit order. Not as an example of how the wheel operates, but to say that if you replace your market orders with put selling and you can resist what happens before expiration, you'd be better off. JSOP keeps referring to the case that the stock drops and you're not assigned, as if somehow having sold the first put magically hinders you from buying stock or selling yet another put at a later time.