Lesson Learned #053: Options Theta Strategy Success

Summary

On Day 50 of the 90-day challenge, options positions account for 99% of total profits (+$932 out of +$942).

Key Findings

What’s Working

  1. Short Put Strategy: Selling puts on quality underlyings (SPY, AMD, INTC, SOFI)
  2. Theta Decay: Time is our friend as option sellers
  3. Phil Town Concentration: Focus on few high-quality positions
  4. Strike Selection: OTM puts with 30-45 DTE

Performance Breakdown

| Position | P/L | Strategy | |———-|—–|———-| | SPY 660 Put | +$460 | Short put | | AMD 200 Put | +$322 | Short put | | INTC 35 Puts | +$105 | Short puts (2x) | | SOFI 24 Put | +$45 | Short put | | SPY Shares | +$114 | Core equity |

What’s NOT Working

  1. Equity positions: Only +$114 from SPY shares vs +$932 from options
  2. Automation: GitHub Actions failed - needed manual screenshot audit
  3. Data freshness: System state went stale

Root Cause Analysis

  • Options provide leverage without margin risk (cash-secured)
  • Theta decay is predictable and consistent
  • Market staying range-bound benefits put sellers

Recommendations

  1. Increase options allocation: Currently generating 99% of profits
  2. Reduce pure equity exposure: Lower ROI than options
  3. Fix automation: Ensure daily sync works without manual intervention
  4. Monitor volatility: VIX spikes could hurt short put positions

Evidence

  • Portfolio: $100,942.23
  • Total P/L: +$942.23 (+0.94%)
  • Options P/L: +$932 (99% of total)
  • Source: Live Alpaca screenshot Dec 30, 10:28 AM EST

Tags

#options #theta #short-puts #phil-town #success #day-50