I found one of my Robinhood accounts collecting dust and thought, “Let me showcase the growth behind a PMCC Strategy” So, I added $500 to the $60 already there, totaling $560.
I’m diving into a strategy known as the PMCC – poor man’s covered call.
Officially started on April 1, 2024, but I hit the record button on April 2. So, don’t be surprised that we’re starting the journey from “Day 2.
I explain why most people freak out when they get into this trade, especially as the stock drops. But remember, it’s not a bad thing and in my trading journal you’ll eventually see why.
Day 2 – 04/02/2024
Starting with $560 to sell covered calls against a leap that expires Jan, 17 2025, a.k.a. PMCC strategy. My personal trading journal showing how to grow a small account on robinhood with this strategy, its tiny gains also known as baby scalping but baby scalping adds up over time and can be a better trading strategy than chasing big wins. This is one of my favorite trading strategy. The real power comes from scaling. This is showing selling 1 call. The power comes when your account is so big that you can sell 10 calls, 20 calls, 100 calls etc. On April 1, 2024 I secured $33 in premium. On the second day, I rolled into another call and collected $37 However, I had like $5 and some change thats why my account shows $75.xx so to keep things easier, i’ll just go based off whats inside of the account because moving forward I won’t be depositing money, all the money in this account will be collected through selling and rolling calls.
Total Premium gained: $75
Day 3 – 04/03/2024
All of these videos are straight off the top of my head, I basically log into my robinhood account every morning and speak out loud of what is in my head. So, take it as it is. I mention that its manipulation but really it isn’t . however, thats what came out of my head and what I really meant to say was that, with the stock volatility it can psych you out so be prepared.
I talk about staying focused on the long-term strategy, aiming to collect enough premium to turn a profit eventually.
Also I go over considering whether to double down on Hut or diversify investments, possibly with a CGC leap, using the same strategic approach. I walked through the process of rolling a position, reflecting on how critical it is to stay informed and adaptable in response to market trends and platform quirks.
Despite the challenges, I’m committed to documenting this journey to help others learn from my experiences. Whether it’s dealing with platform limitations or making strategic decisions, I hope to provide valuable insights and encourage others to explore trading with a thoughtful, long-term perspective. I plan to continue these daily updates, sharing the highs and lows of my trading adventure.
Total Premium Gained: $75 (no locked in profits for today)
Day 4 – 04/04/2024
the stock was rising so closing out the call contract to exit early wasn’t an option. I go over how to handle these situations simply by letting our current position run out of time, therefore, decreasing the price we need to pay to exit. I go over some basic charting in tradingview. I explain what I am looking and what I personally say based off my technical analysis of $HUT on the charts.
Total Premium Gained: $75 (no locked in profits for today)
Day 5 – 04/05/2024
I tried not to make the video long but ended up going over a lot of things that actually ended up making the video long, ironic right?
Total Premium Gained: $100.75 (locked in profits by rolling my position)
Weekend – 04/06/2024
Saturday, no update as the markets aren’t open.
Weekend – 04/07/2024
Sunday, no update as the markets aren’t open.
Day 6 – 04/08/2024
short update, not much went on. no opportunity to exit the position early so needed to let time decay crush the option. I go over some charting and talk about the volume on $HUT I also go over the RSI indicator and what I’m looking at.
Total Premium Gained: $100.75 (no locked in profits today)
Day 7 – 04/09/2024
stock continues to drop but no worries, still collecting premium, always will be…as I mentioned never close the long position, keep it open to continue selling calls. No opportunity to exit the call early so letting the call get crushed by time decay. I also explain ADR which is average daily range and how you can figure out and get a rough estimate of the stocks daily range movement so you can make better decisions.
Total Premium Gained: $100.75 (no locked in profits today)
Day 8 – 04/10/2024
I explain how the stock keeps dropping and how its trading closer at the strike price of my leap contract and what I plan to do in this scenario.
Total Premium Gained: $118.57 (locked in profits today by rolling out the option)
Day 9 – 04/11/2024
rolled my position, stock keeps declining but it is what it is, i’ll continue to roll my position and collect premiums, thats how this works.
Total Premium Gained: $140.49 (locked in profits today by rolling down the option)
Day 10 – 04/12/2024
tried to roll my position 30 mins before the market closed with no luck, was left in pending orders. So if you really want to secure positions, make sure to give more than 30 mins before close, especially on stocks with low volume, to be safe, I don’t know what is a good timeframe but I’d say 3 hours or more if possible, especially if it was a day for example, that the option was going to expire, last thing you want is your leap to get called away! this is an extremely important video about rolling your position. So I basically lost the opportunity to collect $26 with roll because I waited too long to roll the position. BIG REMINDER roll your position before the days end.
Total Premium Gained: $140.49 (locked in profits today by rolling down the option)
Weekend – 04/13/2024
Saturday, no update as the markets aren’t open.
Weekend – 04/14/2024
Sunday, no update as the markets aren’t open.
Day 11 – 04/15/2024
Stock continues to drop, was getting hard time to roll the position, I showed how you can manually force a “roll” by doing it the manual way. I also show how to use options calculator to calculate risk when selling a call option at the same strike as your LEAPS.
Total Premium Gained: $170.41 (locked in profits today by rolling down the option)
Day 12 – 04/16/2024
Jerome Powell was speaking today so the markets were flat, no opportunity today just need to let time decay the hut option. I talked about using some of the profits of the $170 to put it to work by opening up a put credit spread and collecting an extra $12 but due to Jerome Powell, I decided not to take that trade and wait to see what he says about the federal rates if there will be a cut or a hike. Turns out none will happen.
Total Premium Gained: $170.41 (locked in profits today by rolling down the option)
Day 13 – 04/17/2024
got in first thing in the morning with a put credit spread in hopes to take a $12 credit, instead took a $19 loss. This was my first loss since starting this small account, I explain in the video. however, these spy put credit spreads wasn’t a part of my plan or strategy and its a great learning lesson when trying to chase gains, greed can kill you. so moving forward, I am only focusing on the PMCC strategy and it is what it is.
Total Premium Gained: $151.25 (locked in profits today by rolling down the option)
Day 14 – 04/18/2024
I tried to roll my position but it didnt get filled, oh well. I could have closed it manually but I decided to just let it do its thing,
Total Premium Gained: $151.25 (locked in profits today by rolling down the option)
Day 15 – 04/19/2024
HUT continued to go up and down chopping around the $8 strike, So I decided to let time play its course, because of that, I decided to sleep in and didn’t record a video on Friday 4-19-2024. I woke up and seen that the stock was bullish but not with enough power to make me worried to roll my position, therefore, the position still has 1 more week till expiration and I will let time do its thing.
Total Premium Gained: $151.25 (locked in profits today by rolling down the option)
Weekend – 04/20/2024
Saturday, no update as the markets aren’t open.
Weekend – 04/20/2024
Sunday, no update as the markets aren’t open.
Day 16 – 04/22/2024
the stock was moving up and my call was trading ITM so I had to roll the position up and out to the may 17 call at a $9 strike. I couldn’t roll out, so I had to manually close the position by buying it back at a loss but once I was out of that position I sold another call which was the may 17, $9 strike and made a $7 profit so basically, I had $151 of buying power, then had to pay $72.97 to close that position, making my buying power down to $74.22 however when I sold the may 17, $9 call, I collected $83.97 bringing my buying power up to $158.17 so about $6.92 profit for the day.
Total Premium Gained: $158.17 (locked in profits today by rolling down the option)
Day 17 – 04/23/2024
not much I can do today, HUT keeps going up, but my covered call expires in may, 17 and based on the charts I believe it will drop back down. So just going to let time decay do its job. If it continues to rise for the week, i’ll possibly look into rolling up and out as see fit.
UPDATE #1 the stock just kept going up and up so I decided to roll my position up and out to $10 strike, July 19. $44.92 profit for today.
UPDATE #2 After locking in those profits, I realized I had $200 buying power, so I decided to buy a leaps on $NIO which expires 1/16/2026 for $187 which brought my buying power down to $16…then once the order went though, I sold a $5 call expiring 6/21 against my leaps collecting $24, bringing my buying power up to $40.01 however, I now own 2 leaps which I can continue to sell calls against. think of it like having two houses you can rent out instead of 1.
Total Premium Gained: $40.01 (locked in profits today by rolling down the option)
Day 18 – 04/24/2024
couldn’t do much as both calls have an expiration date that expires next month, there is not enough movement in the stock to make a roll on these calls so cant do much. might not be updating as much video wise as its time consuming and not worth it if I cant really take a trade. basically need to wait for time decay or strong movement.
Total Premium Gained: $40.01 (locked in profits today by rolling down the option)
Day 19 – 04/25/2024
No changes for today, stock trading sideways on both stocks, NIO is a very slow moving stocks a few cents up and down and HUT moves around 80 cents up and down. So, need to continue to let it ride and let THETA kill the premium on the options I sold. Updates will possibly be slow moving forward as no moves can be achieved during this sideways trading action.
Total Premium Gained: $40.01 (locked in profits today by rolling down the option)
Day 20 – 04/26/2024
stock trading sideways can’t do much.
Total Premium Gained: $40.01 (locked in profits today by rolling down the option)
Weekend – 04/27/2024 (saturday)
Weekend – 04/28/2024 (sunday)
Day 21 – 04/29/2024
stock still trading sideways however, decided to do a video update. Won’t be doing too much video updates as they are time consuming and I have a lot of work to do. I’ll do video updates when there are big movements or if I plan to roll my positions or add to my positions. Otherwise, the sideways movement from the stocks means I have to wait and let time decay run its course on the calls I sold.
Total Premium Gained: $40.01 (locked in profits today by rolling down the option)
Day 22 – 04/30/2024
no update. had to let the markets trade.
Total Premium Gained: $40.01 (locked in profits today by rolling down the option)
Day 23 – 05/01/2024
here is an update for today. no moves just made a video to update. thought process, etc.
Total Premium Gained: $40.01 (locked in profits today by rolling down the option)
Day 24 – 05/02/2024
It’s my birthday today so I woke up late, however, NIO has still been on a bullish path, so when I woke up I’m still trying to explain this PMCC strategy to Jhanah so I didnt get to record my roll because I ended up showing her live when I roll my position, in hopes it would make things a bit clearer for her. Anyways, I rolled my $5 strike 6/21 expiration to a $6 strike 11/15 expiration, and collected $15 bringing the buying power up to $55.04 here is a screen shot of the history; So in total with my new position, I bought the $4 strike leaps on NIO with a 1/16/2026 expiration and sold the first call against it collecting $24, today I rolled that position up and out to 11/15 and collected $15 bringing my total to $39 with NIO.
Total Premium Gained: $55.04 (locked in profits today by rolling down the option)