Options Trading Journey: $6K to $100K - Week 32

Week 32 Performance Overview

• Current Account Balance: $11,061
• Federal Reserve lowered interest rates by 0.25%
• Powell mentioned the quarter-point cut as "proactive risk management" due to weakening labor market
• Multiple dissenting decisions within the Federal Reserve
• China restricted NVIDIA's access to Chinese markets by prohibiting Chinese firms from buying NVIDIA chips
• Limited trading activity due to FOMC caution
• Managed positions in $MSTX and $LUNR
• Realized gain of $2,164 (up +$85 from Week 31 MSTX $20 CSP realized gain from last week reflected on Monday)

Portfolio Performance

Moving forward I will also provide my portfolio performance on a weekly basis. Some context: prior to focusing on options selling, I used this Schwab portfolio for regular trading, often making poor investment decisions. Looking back, we all learn through experience. Last year, I took a significant loss on a penny stock ($BBIG), which impacted my all-time performance. Currently, I'm down about $1,065 despite contributing over $12K in deposits (last column). I began focusing exclusively on the wheel strategy in early 2024, which is why the past 1-year (+58.61%) and YTD (+36.47%) performance metrics are what truly matter for tracking this journey.

Market Recap

This week was dominated by the Federal Reserve's FOMC meeting, which resulted in a 0.25% interest rate cut. Fed Chair Powell described this cut as "proactive risk management" due to a weakening labor market, which he identified as the primary concern moving forward. Notably, there were multiple dissenting opinions within the Federal Reserve regarding this decision, highlighting the complexity of the current economic situation.

In other significant news, China implemented restrictions on NVIDIA's access to Chinese markets by prohibiting Chinese firms from purchasing NVIDIA chips. This development could have long-term implications for the semiconductor industry and U.S.-China trade relations.

My Week 32 Trades

$MSTX

The $20 strike cash secured put on $MSTX that expired on 09/12 from last week was reflected in this week's realized gains. At the start of the week, as MSTR began to dip, I saw an opportunity and opened an $18.50 strike cash secured put expiring 09/26 for a credit of +$41.

I decided to close this position prior to the FOMC announcement for a debit of -$15, bringing my net profit to +$26. This represented over 50% profit with more than a week left until expiration. I wanted to free up capital in case the FOMC meeting created volatility and new opportunities.

• 09/15/2025 Sell to Open:
  • MSTX 09/26/2025 18.50 P
  • Quantity: 1
  • Credit: +$41
• 09/17/2025 Buy to Close:
  • MSTX 09/26/2025 18.50 P
  • Quantity: 1
  • Debit: -$15
  • Net Profit: +$26

$LUNR

A few weeks back, I had purchased 100 shares of LUNR at $9.00 and began selling in the money covered calls. The initial covered calls generated a credit of +$37, and I rolled them twice for additional credits of +$11 and +$12, bringing my adjusted cost basis down to $8.40.

This week, as LUNR spiked following the FOMC decision, I bought back the contract for a debit of -$70. While I was likely to be assigned on Friday (which would have resulted in a net profit of +$60), I wanted to free up capital for potential opportunities before market close. Buying back the contract increased my adjusted cost basis to $9.10 and freed up my shares, which allowed me to sell all shares on the open market when LUNR was trading near $9.70.

Overall, this trade still resulted in a net profit of +$60 (selling at $9.70 minus the $9.10 adjusted cost basis). This represents a return on capital of approximately 6% on my $900 investment over three weeks. I plan to re-enter a position in LUNR when the opportunity arises, as I remain bullish ahead of their IM-3 launch.

• 09/19/2025 Buy to Close:
  • LUNR 09/19/2025 9.00 C
  • Quantity: 1
  • Debit: -$70
• 09/19/2025 Sell:
  • LUNR (100 shares)
  • Price: $9.7
  • Total: +$970
  • Net Profit: +$60 (considering adjusted cost basis of $9.10)

What I'm Holding Now

As of September 21, 2025, here's what's in my portfolio:

• $11,061 Cash reserves awaiting potential market opportunities
• No open positions - 100% cash
• Weekly $100 deposit on Wed and Fri splits

Looking Ahead

I'm currently in a 100% cash position, awaiting a potential market pullback before moving higher. While the timing of such a pullback is uncertain, I'm prepared to capitalize on opportunities when they arise.

With a substantial cash position of over $11,000, I'm well-positioned to take advantage of new setups that present themselves. I'll continue to monitor LUNR for potential re-entry, as I remain bullish on their long-term prospects with the IM-3 launch in 2026.

As always, I'll be using the options scanner to identify potential trades.