In September 19, I initiated a position on Amazon when the stock retraced from its year-to-date high. Identifying what seemed to be a support level, I strategically placed a Sell Put at a $132 strike for a one-week contract. As the stock continued its descent, I found myself assigned 100 shares of Amazon by week's end. Opting for a Wheel strategy, I skipped rolling and proceeded to embrace the shares assigned to me, immediately initiating the sale of covered calls on the 100 shares.

Over the subsequent two months, I executed over half a dozen weekly covered calls, accumulating approximately $400 in total premiums. The final call, with a $140 strike, marked the culmination of this wheel cycle. As the underlying share price surged to $143 by last Friday's close, my 100 shares were called away.

Reflecting on the entire wheel cycle spanning two months, I realized a return on investment of about $1.2k, equating to a robust 9% or an annualized rate of 54%. Comparatively, had I simply bought the underlying at $132 and held on, I would have enjoyed similar profits. While my bullish outlook on Amazon persists, I acknowledge the market's recent rapid ascent. Anticipating a potential slowdown or even a slight pullback to allow the moving averages to catch up with the price action, I remain poised to continue the Wheel strategy on Amazon. My plan is to sell new Put options once I observe a slight pullback, ensuring the Wheel keeps turning.

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