Market Context
Volatility remains subdued, with the VIX holding near the 15 area after extending its broader decline from recent highs.
SPY continues to hold a strong uptrend above key moving averages and remains near recent highs. QQQ has recovered strongly from the late-July pullback, although it remains below its previous highs.
Earnings activity is lighter this week, but several notable consumer and technology names are still reporting. Single-stock event risk therefore remains relevant for individual Wheel candidates.
Overall, the environment remains constructive for selective premium selling. Low volatility and short-term extension favor patience, cleaner support levels, and disciplined entries.
Last Week — Trade Recap
Note: Cash-secured put sold after the post-earnings pullback from recent highs, with the $89 strike positioned near the rising SMA100 and the recent $87-88 support zone. The $1.25 premium lowered the effective assignment price to $87.75, placing the entry directly around that support area.
Current Positions
Plan: Covered call at the $39 strike remains open through August 21. Shares are now trading above the strike at approximately $40.77, making call-away increasingly likely if the stock remains above $39 through expiration.
Plan: Shares have recovered to approximately $46.26 but remain below both the $57 assignment basis and the $47.95 effective cost basis. Covered call management remains deferred while waiting for additional recovery toward an acceptable exit strike.
Plan: Shares remain above the assignment basis at approximately $18.29. A new covered call could already have been sold, but I chose not to force an entry simply to collect premium or create another trade to document. I am waiting for a stronger recovery and a better combination of strike, premium and assignment quality before opening the next Covered Call.
Plan: Shares have recovered to approximately $9.24 but remain below both the assignment basis and the $10.28 effective cost basis. Covered call management remains deferred while waiting for further recovery toward an acceptable strike.
Plan: Shares remain well below the assignment basis at approximately $124.99 following the post-earnings selloff. Covered call management remains deferred while waiting for stronger stabilization and a recovery toward acceptable strikes.
Plan: Shares are trading around $28.15 and remain below both the assignment basis and the $30.83 effective cost basis. Covered call management remains deferred while waiting for additional recovery before giving up upside at an unattractive strike.
Plan: Shares have recovered to approximately $177.97 but remain below both the $190 assignment basis and the $183.60 effective cost basis for the full cycle. The position is approaching the effective cost basis, but covered call management remains deferred while waiting for additional recovery toward an acceptable exit strike.
Watchlist
AGGRESSIVE
BALANCED
SAFE
What I Am Not Touching
No chasing extended setups. SPY remains near recent highs and several individual names have already moved well away from the support levels that would provide attractive assignment entries. A strong chart is not automatically a good CSP entry.
No premium-first trades. With VIX near 15, broad-market volatility is providing less compensation. Higher premiums in individual names are more likely to reflect company-specific risk, momentum, or unstable structure rather than a better opportunity.
No front-running watchlist levels. Several candidates remain constructive, but the trigger matters. I am waiting for price to reach support and confirm rather than selling puts simply because the underlying is on the list.
No trades through earnings risk. The calendar is lighter, but individual reports remain relevant. Short-dated positions still need a clean path through expiration without unnecessary event exposure.
No forced covered calls. SOFI is the clearest example. The shares are profitable and a call could already be sold, but collecting premium is not enough reason to cap the upside. I would rather wait for a stronger recovery and a better strike than manufacture activity.
Process Note
Last week produced only one new trade. HOOD expired worthless and released the collateral after four days. That is a small amount of activity compared with some previous weeks.
It is also exactly what the process produced.
The current market creates an interesting tension: index structure is strong, volatility is low, and several individual stocks are extended. That combination can make doing something feel more attractive than the actual setups justify.
But activity is not the objective.
A covered call does not need to be sold simply because shares are available. A CSP does not need to be opened simply because cash is available. Sometimes the better decision is waiting for price to improve the setup.
A watchlist is not a trade list. A premium is not an entry signal. And having capital available does not mean it needs to be deployed.
The process remains unchanged. Wait for price. Wait for structure. Take the trade when the setup earns it. Not when the calendar needs one.
— Wizolver