Starting amount: $1,000 Ending amount: $2,117 Start date: April 4, 2023 End date: December 4, 2023 Time: 9 months Strategy: The Wheel Method: OTM CSP high IV equities Biggest win: $AMC / $MARA Additional details
The trader used the wheel strategy, which involves selling puts and calls on the same underlying asset. The trader focused on OTM (out-of-the-money) CSPs (cash-secured puts) on high IV (implied volatility) equities. The trader's biggest win came from selling puts on $AMC and $MARA, which were both experiencing high IV at the time. Key takeaways
The wheel strategy can be a profitable way to trade options. Focusing on OTM CSPs can help to reduce risk. Trading high IV equities can lead to bigger profits, but it also comes with more risk. Overall, this challenge is a great example of the power of the wheel strategy. By carefully following the rules of the strategy and focusing on high-probability trades, the trader was able to achieve a remarkable return of 115% in just 9 months.