Today was a good reminder of how I want to run my PMCCs — systematic, patient, and income-focused.
ROKU dropped over 5%, and with my LEAP sitting at a .80 delta, that translated into a pretty sharp swing in the value of the position. With two contracts on, I’m essentially controlling about 160 synthetic shares. So when ROKU moves, I feel it.
But here’s the important part — nothing about the structure broke.
Current Position Structure
LEAP: Jan 15, 2027 $60 Call
Contracts: 2
Delta: .80
DTE: 325
Current Price of ROKU: $84.42
Net Cost Basis: $39.36
Break-even at Expiration: $102.85
Intrinsic Value: $24.42 (~57% intrinsic)
This is exactly how I want a PMCC built:
- Deep ITM
- High intrinsic value
- Long duration
- High delta (synthetic stock replacement)
Even after today’s drop, the structure is strong.
Covered Calls – Closed at 60%+
I had sold the Mar 27, 2026 $102 calls:
- Sold 2 @ 2.65
- Bought back @ 0.97
That’s over a 60% profit captured early.
I don’t wait for 100%. I don’t squeeze the last pennies. When I can remove risk and lock in solid income, I do it.
Closing those calls accomplished three things:
- Locked in income
- Removed my upside cap
- Took off short-term downside pressure
Now I’m temporarily naked long the LEAP again.
The 5% Drop – What It Means
With a .80 delta LEAP:
- Every $1 move in ROKU ≈ $80 per contract
- With 2 contracts, that’s ~$160 per $1
So a $4–$5 move equals a $600–$800 swing.
That sounds dramatic, but it’s just math. This is synthetic stock exposure.
And I’m comfortable with that because:
- I have 325 days left
- I’ve already reduced cost basis
- 57% of the option is intrinsic value
This is volatility, not damage.
Why I’m Waiting Before Selling More Calls
After closing the covered calls, I chose not to immediately resell.
Right now, I’m watching to see if ROKU stabilizes or bounces before I reopen new short calls.
Here’s my thinking:
Selling calls into weakness:
- Locks in lower strikes
- Reduces recovery upside
- Can feel defensive
Waiting for even one green day:
- Allows me to sell slightly higher strikes
- Improves flexibility on future rolls
- Keeps the system patient instead of reactive
I’m not trying to predict a big rally. I just want stabilization before re-engaging income.
What This Trade Is Teaching (Again)
A PMCC is not about predicting direction.
It’s about:
- Owning high-delta, long-duration exposure
- Repeatedly harvesting short-term premium
- Reducing cost basis over time
- Letting time work
Right now, I’m long 160 synthetic shares with no cap.
That’s not reckless — that’s temporary positioning.
If ROKU drops again, I’ll likely sell shorter-duration calls (14–21 DTE, ~25–30 delta) to re-hedge and collect income.
If ROKU pops, I’ll sell into strength.
Either way, I’m not emotional about it.
Where I Stand
Even with today’s drop:
- Net cost basis is reduced
- I’ve already captured strong income
- The LEAP remains high quality
- I still have almost a full year of time
This is what running a system looks like.
Volatility happens.
Income compounds.
Structure matters more than daily price swings.
And right now, the structure is still intact.
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