Market Context
Volatility remains contained, with the VIX trading near 16 after fading from the brief spikes seen in recent weeks.
Index-level option premiums remain relatively modest, making disciplined strike selection more important than simply chasing higher credits.
SPY continues to hold above its longer-term trend, despite consolidating below the 21-day EMA after last week’s pullback.
QQQ remains the weaker index, trading below its short-term moving averages as technology leadership continues to cool following earnings.
The earnings calendar is still active, with another busy week across technology, healthcare and consumer stocks.
While the concentration of mega-cap reports has eased, single-stock event risk remains elevated and continues to eliminate many otherwise attractive Wheel candidates.
Overall, the environment still favors selective premium selling. Strong price structure and earnings timing matter more than implied volatility this week.
Last Week — Trade Recap
Note: Entry taken below the $130-133 support cluster after a controlled pullback within the broader uptrend. Assignment was fully acceptable before entry, with the strike positioned at a key support area. Assigned at expiration.
Current Positions
Plan: Covered call at the $39 strike remains open. Following strong earnings, shares moved above the strike, making assignment increasingly likely if price remains above $39 through expiration.
Plan: Shares have recovered from recent lows but remain well below the assignment basis. With earnings only a few days away, covered call management remains deferred until after the event.
Plan: Earnings are now complete. Shares remain below the assignment basis, and covered call management will resume only when acceptable strikes become available.
Plan: Covered call at the $265 strike remains open. Following strong earnings, shares rallied above both the assignment basis and call strike, making call-away increasingly likely while locking in a profitable Wheel exit.
Plan: Price recovered from the recent low but remains well below the assignment basis. Waiting for a stronger recovery before resuming covered call management.
Plan: Price remains below the assignment basis. Covered call management remains deferred until a more attractive strike becomes available.
Plan: Shares have stabilized following the recent selloff, but earnings are approaching next week. Covered call management remains deferred until after the earnings event.
Plan: Following earnings, shares sold off sharply below the assignment basis. Covered call management remains deferred while the position recovers.
Plan: Assigned at expiration after the $57 CSP. Shares continue to recover and are trading near the assignment basis. Covered call management will begin once acceptable premium is available above cost basis.
Plan: Assigned at expiration after the $130 CSP. The position now enters the Covered Call phase of the Wheel while monitoring for acceptable premium above the assignment basis.
Watchlist
AGGRESSIVE
BALANCED
SAFE
What I Am Not Touching
No trades into earnings.
Event risk remains elevated across several quality names this week, removing otherwise valid Wheel candidates before premium is even considered.
No chasing post-earnings breakouts.
Several stocks continue to trade well above recent support after strong earnings reactions. Assignment quality no longer justifies new CSP entries.
Covered calls below cost basis remain off the table.
Existing assigned positions continue to be managed patiently until acceptable exit prices become available. Premium remains secondary to assignment quality.
No premium-driven deployment.
With the VIX back near 16, premium remains modest across much of the market. Lower credits are acceptable. Lower assignment standards are not.
Process Note
Last week finished with one new assignment and no additional positions opened.
That outcome reinforces one of the core principles of the Wheel process.
A larger watchlist does not automatically produce more trades.
Several names reached the evaluation stage, but none satisfied the complete combination of structure, assignment quality, pricing and earnings timing.
Two new publications were added to the log this week.
The process remains unchanged. Selectivity continues to determine capital deployment.
— Wizolver