2021-04-11 Sunday


Another strong week for the markets with S&P500 (SPY) and Dow Industrial (DIA) pushing to fresh new all-time highs, and starting to look very extended on the upside.


Mega tech stocks (QQQ) have been the weekly leaders and now are about to test resistance at former all-time highs.


Small caps (IWM) have been lagging against the rest of the market and now at the convergence of a wedge on a daily timeframe. Next week we’ll know to which direction the pattern is going resolve.


Weekly performance (Week 14/2021)
– SPY (S&P500) +2.72%
 QQQ (Nasdaq100) +3.86%
 DIA (Dow Jones Industrial) +1.93%
 IWM (Small Caps) -0.51%

Volatility (VIX) keeps falling and now trading in the 16 range, and with these decreasing levels of volatility options premium are also getting lower.



On the week I managed to close three different plays.

1) During the pre-market on Monday NNOX exploded on the upside due to a FDA approval. Before the opening bell, the stock started to fall but I was able to sell a 04/09 CC $75 for a generous $3.50 credit.

NNOX at opening of the session on Monday 04/05

As the stock kept falling sharply for the rest of the session (and also during the following one) I managed to close the position the next day buying it back for just $0.10, keeping 97% of the premium for an astronomical 1655% AROI.

NNOX at the mid of the session on Tuesday 04/06

2) After 43 days and 2 rolling adjustments on Tuesday I also closed the cash-secured put on QQQ for a $0.17 debit. Despite the difficult period for tech stocks in the end I managed to keep 98% of the overall premium and achieve a solid 29% AROI.


3) Finally on Friday night I let expire worthless the ARKK 04/09 CSP at the $117 and $120 strikes, achieving respectively a 94% AROI in 4 days and a 58% AROI in 23 days.

ARKK is one of my favorite instruments for the wheel strategy and I have more CSP expiring on 04/16 and 04/23.


Join The Wheel Strategy FREE Discord Community to connect with a serious group of friendly and supportive traders, and take your trading skills to the next level.

If you have any questions, just drop me an email to info@thewheelstrategy.com

Take care and trade wisely