Market Context
Volatility is rising from recent lows, with the VIX testing short-term resistance around 17.
The broader trend remains constructive. SPY and QQQ continue to trade above their major moving averages despite last week’s pullback.
Earnings season begins to accelerate this week, with major financial institutions leading the calendar before large-cap technology reports later this month.
Higher implied volatility is improving option premiums, but it also reinforces the need to stay selective. I’ll continue focusing on high-quality assignment candidates rather than chasing premium alone.
Last Week — Trade Recap
Note: Cash-Secured Put opened near the SMA50 support area on a speculative biotech. Break-even remained near the lower support zone with earnings well outside the option cycle. Expired worthless.
Note: Covered call sold above the $57 assignment basis after recovery through the support cluster. Fair premium while preserving additional upside participation. Expired worthless.
Note: Covered call sold above the $17 assignment basis after SOFI reclaimed the EMA21 / EMA34 / SMA50 support cluster. Strike preserved upside participation while premium remained fair on elevated IV. Expired worthless.
Note: Cash-Secured Put sold near the EMA34 / secondary support area after a healthy pullback within a strong uptrend. Elevated IV provided attractive premium while maintaining acceptable assignment quality. Expired worthless.
Note: Cash-Secured Put opened near the EMA21 / EMA34 support cluster after a controlled pullback within a strong uptrend. Elevated IV provided attractive premium while maintaining acceptable assignment quality. Position remains open.
Current Positions
Plan: Price remains below assignment basis. Covered call management continues to be deferred while waiting for a stronger recovery.
Plan: Covered call expired worthless. Ready for the next covered-call cycle if price reaches acceptable exit levels.
Plan: Covered calls expired worthless. Ready for the next covered-call cycle if price remains above acceptable exit levels.
Plan: Price remains below assignment basis. Covered call management remains deferred.
Plan: Shares remain well below assignment basis. Waiting for a higher-probability covered call opportunity.
Plan: Price remains below assignment basis. Covered call management remains deferred.
Plan: 4 contracts. Break-even: $32.00. Monitoring support around the $33-35 zone.
Watchlist
AGGRESSIVE
BALANCED
SAFE
What I Am Not Touching
No trades into earnings.
Financials begin reporting this week, with several large-cap names following shortly after. Event risk remains incompatible with short-dated Wheel entries.
No chasing higher premium.
Volatility is improving, but higher premium alone does not improve assignment quality.
No selling puts into extended momentum.
SPY and QQQ remain in primary uptrends, yet many individual names continue trading well above support after the recent rally.
No lowering standards because VIX is higher.
Improved option pricing is welcome, but every position still needs clean structure, acceptable assignment, and defined downside.
No forcing deployment.
A larger watchlist does not mean more trades. Capital is deployed only when price reaches predefined levels.
Process Note
Last week was primarily about premium collection.
Four positions expired worthless while HIMS remains active inside acceptable structure.
With earnings season beginning, the focus shifts from increasing activity to improving trade quality.
Higher implied volatility creates more opportunities on paper.
The process still filters most of them out.
This week I published The 5 Rules Behind Every Wheel Trade, a short overview of the decision framework behind every position documented in this newsletter and the trade log.
If you’ve ever wondered why I reject far more trades than I place, that’s the video to watch.
The objective remains unchanged:
- clean support
- acceptable assignment
- controlled position sizing
- no earnings risk
Higher premium. Same standards.
Back to execution.
— Wizolver