Three out of our five positions in the Income Wheel Portfolio are due to expire this week. Two out of the three positions (GDX, KO) should reap nice profits while the third position, Wells Fargo (WFC), will most likely see a loss for this expiration cycle. However, due to our strategy, we’ve built a nice 17.09% cushion to absorb any hiccups along the way, and given the near-term woes in the banking sector, I would consider the recent decline in WFC a “hiccup.” So much so, that there is a good chance we add another bank stock to the mix this week for a short-term trade.

Even with some crazy volatility over the past few weeks, not much has changed. We continue to be loaded up in the Income Wheel Portfolio, although I wouldn’t mind stepping into a few new positions. As I stated last week, if I do decide to add a position or two to the portfolio, one will have a low IV and the other will be the exact opposite, with a high IV. The reason, as stated in the past, is that I like to diversify the overall beta of my positions so that our overall level of risk is balanced.

Not much has changed from last week. We are loaded up in the Income Wheel Portfolio, although I wouldn’t mind stepping into a few new positions. If I do decide to add a position or two to the portfolio, one will have a low IV and the other will be the exact opposite, with a high IV. The reason, as stated in the past, is that I like to diversify the overall beta of my positions so that our overall level of risk is balanced.

We are loaded up in the Income Wheel Portfolio, although I wouldn’t mind stepping into a few new positions. If I do decide to add a position or two to the portfolio, one will have a low IV and the other will be the exact opposite, with a high IV. The reason, as stated in the past, is that I like to diversify the overall beta of my positions so that our overall level of risk is balanced.



Moreover, nothing has changed over the past few weeks regarding new short-term positions; I still intend to add a jade lizard or two to the mix for the April expiration cycle.

We added four new positions last week, which brings us to five open trades. Our PFE position is due to expire this week and the four (KO, BITO, WFC, GDX) we added last week are due to expire on March 31, 2023.

Our PFE calls are essentially worthless, so I plan on buying them back today or tomorrow and immediately selling more calls against our shares. Otherwise there really isn’t much to do with our existing open positions as we are early in the trades.

February expiration has passed and we were able to lock in 14.97% on a cumulative basis for the cycle. Three out of our four positions made a profit with GDX essentially closing out the expiration cycle at breakeven, as we only lost $0.05 on the trade.

Our cumulative total return since starting the service just over eight months ago is 64.67%.

Expiration is upon us and our positions are shaping up nicely for some decent returns. There really isn’t much to do this week with our existing positions other than just allow them to play out through expiration. That being said, I continue to scour our Income Trader watch list for new trading opportunities to add to either the Income Wheel Portfolio or the Income Trader Portfolio. Now that earnings season is nearing an end my hope is to add several positions to the mix.

We continue to be in great shape as we approach the February 17, 2023 expiration cycle.

My only hope is that we can add a few more trades to the mix this week. Earnings are coming in fast and furious and, as a result, I have my eyes on a few potential stocks that reside on our weekly watch list. Starbucks (SBUX), Citigroup (C), Cisco Systems (CSCO) and several others are just a few of the names I’ll be looking to sell puts on this week.

As the February 17, 2023 expiration cycle nears we are in good shape to make some decent profits from our current positions. In fact, there is a good chance that we will have an opportunity to buy back a few of our positions this week and immediately sell more premium. Moreover, I intend on adding one to two new trades to the mix this week; of course, as always, Mr. Market will help to dictate our path.

The week I will add new trades in both BITO and KO.

We locked in some nice gains on both trades last week which brought our total premium return to 49.75%. My hope is that we are able to add several short-term trades to the mix, in addition to the new trades in BITO and KO.

Our BITO and KO are all due to expire this week. I will allow our BITO calls to carry through expiration, but plan to buy back our KO puts and immediately sell more puts, thereby collecting more premium for our position in KO.

Surprisingly, if BITO does close above our 11.5 strike at expiration this week, we should see a nice overall profit in the position. I’m not sure many can say they’ve been able to scratch and claw a profit out of BITO, especially when you consider we took on the position back in early June when BITO was trading for around $18. Again, another reason why premium selling should be an integral part of everyone’s investment plan.

We sold some additional premium in Wells Fargo (WFC) late last week and I intend to sell even more as we begin 2023. Our PFE 49 puts are due to expire this week and if all goes well, I plan to buy back the puts for $0.05 and immediately sell more put premium going out to the February 17 expiration cycle.

The same goes for my GDX and KO positions. I intend to buy back our put positions in both underlying stocks and immediately sell more premium. And like PFE, I will be focusing on selling premium for the February 17 expiration cycle.

Cabot Options Institute Income Trader is focused exclusively on the creating consistent income through a variety of options selling strategies. Whether you have questions about selling puts, covered strangles, jade lizards or our income wheel approach, Andy is more than happy to help you steepen your learning curve in this live event.

Cabot Options Institute Income Trader is focused exclusively on the creating consistent income through a variety of options selling strategies. Whether you have questions about selling puts, covered strangles, jade lizards or our income wheel approach, Andy is more than happy to help you steepen your learning curve in this live event.

Cabot Options Institute Income Trader is focused exclusively on the creating consistent income through a variety of options selling strategies. Whether you have questions about selling puts, covered strangles, jade lizards or our income wheel approach, Andy is more than happy to help you steepen your learning curve in this live event.

Cabot Options Institute Income Trader is focused exclusively on the creating consistent income through a variety of options selling strategies. Whether you have questions about selling puts, covered strangles, jade lizards or our income wheel approach, Andy is more than happy to help you steepen your learning curve in this live event.

Cabot Options Institute Income Trader is focused exclusively on the creating consistent income through a variety of options selling strategies. Whether you have questions about selling puts, covered strangles, jade lizards or our income wheel approach, Andy is more than happy to help you steepen your learning curve in this live event.

Cabot Options Institute Income Trader is focused exclusively on the creating consistent income through a variety of options selling strategies. Whether you have questions about selling puts, covered strangles, jade lizards or our income wheel approach, Andy is more than happy to help you steepen your learning curve in this live event.

Our March 31, 2023, 59 puts are essentially worthless. As a result, I want to lock in the profits and immediately sell more premium.

Our BITO March 31, 2023 puts are essentially worthless, so we can lock in some decent profits and immediately sell more puts.

There is little to no premium left in our March 3, 2023, 46 calls. As a result, I want to buy back our March 3, 2023, 46 calls, lock in profits and immediately sell more calls.

WFC rallied over the past expiration cycle and as a result, our February 17, 2023, 45 calls were assigned, and our entire position was “called” away last week. We made 10.17% on the trade.

We allowed our February 17, 2023, 59 puts to expire worthless. As a result, per our Income Wheel guidelines, we will remain mechanical and sell more puts in KO today.

As part of the Income Wheel approach, we allowed our GDX puts to expire in the money at expiration last week. As a result, we were issued shares at our chosen put strike of 29.

We allowed our January 20, 2023, 60 puts to expire worthless. As a result, per our Income Wheel guidelines, we will remain mechanical and sell more puts in KO today.

As part of the Income Wheel approach, we allowed our Pfizer (PFE) puts to expire in the money at expiration last week. As a result, we were issued shares at our chosen put strike of 49.

GDX has rallied of late and, as a result, our January 20, 2023 26 puts are essentially worthless. That being said, I want to buy back our 26 puts, lock in a nice profit, and immediately sell more premium

As part of the Income Wheel approach, we allowed our Wells Fargo (WFC) puts to expire in the money at expiration last week. As a result, we were issued shares at our chosen put strike of 44. So far, we’ve managed to lock in $3.47 worth of premium or 8.3%.

Our BITO 12 calls for the December 30, 2022, expiration cycle are essentially worthless. As a result, I want to buy back our BITO calls, lock in our premium and immediately sell more premium going out 32 days.

There is almost no premium left in our PFE December 16, 2022, 45 puts. As a result, I want to buy back the 45 puts and sell more premium in January.