04-08-2021, 08:08 PM
I was going to demonstrate wheel trades on T since it got called away yesterday but my notes are such a mess that I can't reconstruct it myself-LOL
Here is the condensed upshot.
Did buy/write on T 5/27/20 $29.85
Collected 3 dividends $156 per 100 lot.
Collected $448 options premiums per 1 lot (100 shares)
Collected $15 capital gains per 100 lot-LOL
Total $604 for 11 months
20% YOC for 22% annualized, on a cash account.
With 6-1 portfolio margin one can see how the gains ramp up. Either way, it illustrates how to supersize your gains from a stock that essentially didn't move.
Here is the condensed upshot.
Did buy/write on T 5/27/20 $29.85
Collected 3 dividends $156 per 100 lot.
Collected $448 options premiums per 1 lot (100 shares)
Collected $15 capital gains per 100 lot-LOL
Total $604 for 11 months
20% YOC for 22% annualized, on a cash account.
With 6-1 portfolio margin one can see how the gains ramp up. Either way, it illustrates how to supersize your gains from a stock that essentially didn't move.