Has anyone run this? I keep watching this one youtuber saying he targets 4% on setting a short csp with 30 dte which comes out to 1% per week on a high beta stock.
It's hard to find an example now because the market is closed and options prices are not live.
Let's say sofi though. Stock closed at 16.35. If you sold a 34dte at 15 strike which is 28 delta for .46. That's only a 3% return, where he would shoot for a little over 4%. Then if the stock runs up, he would close at 50% profit in less than 2 weeks.
If you get a spike and sell early you could get to 1% per week.
Then you have some downside protection. In this case, it has to drop to 14.54 to lose money or drop $1.81 or 11% drop in 34dte.
If he gets assigned he wheels it selling covered calls back at 30 delta. He did bag hold a few for long stretch, see sofi above when it dropped from 32 to 16. But he says he returns 40% a year running this and a few other strategies.
Just wondering if anyone runs this and if it worked out for them. Thanks!