Wheel strategy un hedged

You are using margin for the denominator in calculating percent return??

 

I'm using the actual capital I am putting at risk.

 

As in the margin requirement

 

Yeah. It’s a reasonable approach since you could never lose more than the margin.

 

The cash capital at risk in the trade is around 18k and any given time. The margin is irrelevant because I have not exceeded my cash available...it's a cash trade.

 

I ignore anything longer than 20 words.

 

When you tell someone what your return is,the denominator is very relevant

 

OK I'll write it like you would. The worst week last year would have been:

Max 1 week DD 191 Mar6, 175 Mar15, loss $-1482, Premium $631, realized gains $116 results in net realized loss $-735

Premium calculated from date assigned to date called out.

 

No it isn't. All margin means when you actually have the capital to cover your trades is how much extra money you have to trade with. Until you have used up your cash it is irrelevant.

The cash at risk was about 18k.
The profits were 16k.

Do what you want with it. Honestly capital at risk is a misnomer. Capital at risk is only relevant when there is substantial risk...it's more return on capital.

 

So its return on notional...