Captain - how did your CC selector do in April after the sharp market recovery?

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I’ve been using Claude to help me build a dashboard tool (much more crude version of your CC selector) to refine my strategy. It’s been working well and I’m still beating the market YTD, but the sharp recovery in early April rocketed a few of my larger CC’s past the strike and really capped potential gains pretty hard for me. I’m still holding a couple that are deep ITM and slowly rolling for credit (as I stubbornly believe we are on the cusp of a not insignificant correction), and have managed to get a few back into a good position without having to go astronomically far out, but looking at the unrealized gain that I’ll be missing out on for a few of these positions makes me sad. I got caught with my pants down on AMD and NBIS specifically very badly.

How did your strategy work over these past couple months? Do you have any rules relating to opening or holding positions when there is a steep draw down (or maybe something around %decline over x time period)? I’ve seen people recommend giving some time after a correction to let the market settle before opening any new covered positions. I think I am going to try incorporating something like that as I’ve learned a valuable lesson recently. Fortunately/unfortunately most of my best experience with investing/trading over this last decade has been from making costly mistakes.

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I’ve been doing this on a particular position (DIS) that I hold for exactly one year this month, and so far it’s been quite profitable. If I add up all the option premium credits from the 12 rolls, plus 2 small dividend payments, it comes to 23.83% of my original share purchase price. That’s a pretty good yield in my book!

So, in theory you can roll “forever” or wait for the stock to drop and then close the trade. But that’s just in theory, I had some covered calls a couple of months ago that couldn’t roll, maybe I’ll write a post about it someday (no promises, but if I do write it, it’ll probably be in the options board, not here in METAR).

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