To The Moon

On 18 Dec 2024, I had been assigned 100 shares of $KWEB 20250321 37.5 CALL$ at $35. Since then, I have been doing SELL CALL to collect premium while waiting for the price to raise, highlighted in yellow of the wheel strategy below. On 14 Mar, the price was below my SELL CALL strike of $37 and I have collected the premium again. On that day, I have opened another SELL CALL with strike price $37.5, DTE: 21 Mar 2025, for premium of $58 (approximately 1.6% for 1 week).

My KWEB is currently in the highlighted yellow boxes.

I will walk through my 3 steps, forming my outlook, taking care of my risk and taking care of my reward.

Forming my outlook:

• I am positive with the KWEB given that there are good support from the government and the companies are still consistently doing well. Hence, my outlook is still bullish for the coming weeks.

Taking care of my risk:

• In my view, I don’t see any risk as I have 100 shares of KWEB and I am ready to let them call away.

I am owning 100 shares of KWEB.

Taking care of my reward:

• If price moves below $37.5, I will keep the premium of $58.

• If price moves above $37.5, I’ll get to keep the premium of $58 and obligated to sell off 100 shares 100 at $37.5, making a profit of $2.5 ($37.5 - $35).

   

Example of option analysis for SELL CALL.

In summary, I have been doing the wheel strategy on KWEB since Dec 2024. Currently, I am doing the SELL CALL which is expiring this week for premium of $58. In my view, I’ll still win no matter the price movement.

Comment below if you have any queries. Feel free to share with me if you have a stock in mind and like to use options for your trades. I may write an article of your stock for discussion and education within this community.

Happy investing 😊.