Ep86 - Tracking Option Wheel Trade Results
Summary
In episode 86, host Dan Passorelli explains why tracking the cumulative profit and loss of options wheel trades is essential for evaluating performance, noting that brokerage platforms do not automatically track these multi-leg strategies. He details the tedious process of manually reconstructing historical trade data from brokerage statements into a spreadsheet to calculate accurate cost basis and total returns. Using Bluebird Corp as a case study, he demonstrates how to sum all debits and credits while accounting for stock scalps, assignments, and orphaned trades to determine the true bot…
Topics discussed
The tedious process of piecing together wheel trade results
Episode 86 intro: Why measuring performance matters
Statistics in trading and the limitations of spreadsheets
The problem with calculating cost basis after assignment
The necessity of tracking historical wheel trade baselines
Trading as a business: The danger of untracked inventory
The difficulty of reconstructing past performance from statements
Why brokerage platforms do not track wheel strategy P&L
Case study: Tracking Bluebird Corp wheel trades in a spreadsheet
Defining the 'Big Cycle' and summing credits and debits
Verifying complete cycles and handling stock scalps
Managing orphaned trades and expired options in calculations
The need for dedicated tools beyond brokerage capabilities
Introducing the Wealth Builder platform for wheel tracking
Fundamental data integration for long-term wheel investing
Professional-grade risk management tools for retail traders
Video library and training resources within the platform
Free trial offer and sign-up details for Wealth Builder
Closing remarks and risk disclosures
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