HIGH NOON TRADER

How I’m Managing My ROKU PMCC Through a Pullback (And Turning It Into Income)

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by

Happy Harry Huckleberry

My trade on ROKU is in a completely different phase than my MRVL position—and that’s exactly why I’m treating it differently.

This one isn’t about optimizing a winner.

This is about managing a pullback correctly and turning it into income.

🧾 Where I’m At Right Now

Here’s the current snapshot:

  • Stock: ~$89.87
  • Total Profit: $1,533.50
  • Time in trade: ~51 days
  • Annualized return: ~128%

Even with the recent drop, the overall system is still working.

🧠 The Core Structure

Long LEAP:

  • 2x Jan 2027 $60 calls
  • Delta: ~0.83
  • Cost basis: ~$42.88
  • Current value: ~$37

👉 Yes, the LEAP is down right now.

But that’s expected in a pullback—and more importantly:

It’s still positioned exactly where I want it.

Short Calls (Latest Move)

This is where I made my adjustment.

Instead of sitting on my previous calls, I:

👉 Rolled into the $100 strike for $1.45 credit

💡 Why I Chose the $100 Strike

I had a few options:

  • Go higher (more upside, less income)
  • Go lower (more income, more risk of getting tested)

I landed right in the middle.

The reasoning:

  • I wanted strong premium → $1.45 is solid
  • I didn’t want to choke off upside completely
  • I wanted something I could manage easily if tested

👉 This keeps me in control of the position

⚖️ What Phase This Trade Is In

This is the key difference from my MRVL trade.

Right now, ROKU is in:

“Repair + income mode”

Not:

  • Breakout mode
  • Optimization mode

🧠 What That Means Practically

I am NOT trying to:

  • Maximize upside right now
  • Chase the stock higher

I AM trying to:

  • Reduce my LEAP cost basis
  • Generate consistent premium
  • Stay positioned for recovery

🔥 How the System Works in a Pullback

When the stock drops:

LEAP:

  • Loses value
  • Delta drops slightly
  • Drawdown shows up

Short Calls:

  • Win faster
  • Decay quickly
  • Generate income

👉 That income becomes the key.

It’s what allows me to:

  • Stay in the trade
  • Offset losses
  • Improve my position over time

⚠️ What I Did NOT Do

This part is important.

I did NOT:

  • Roll my LEAP down
  • Add more capital
  • Try to “fix” the long leg

Because:

That’s how you turn a temporary drawdown into a permanent mistake

🔄 What I’m Doing Instead

I’m letting the structure do its job:

  1. Keep the LEAP intact
  2. Actively manage short calls
  3. Sell premium closer to price
  4. Repeat the cycle

🧠 What Happens Next

If ROKU stays around 85–95:

  • My short calls decay
  • I collect income
  • I resell again

If ROKU rallies toward 100:

  • I’ll roll the calls up and out
  • Stay in the position
  • Keep collecting premium

If ROKU drops further:

  • I’ll move strikes lower
  • Increase income per cycle
  • Keep working my basis down

🏁 The Big Lesson

This trade really reinforced something for me:

A PMCC is not a directional bet—it’s a managed system.

Sometimes:

  • The LEAP leads (on the way up)

Sometimes:

  • The short calls lead (on the way down)

Final Thought

I’m still bullish on ROKU long-term.

But right now, I’m not trying to be right about direction.

I’m focused on:

  • Staying in the trade
  • Generating income
  • Letting time and structure do the work

And that’s how I turn a pullback into something productive instead of something I react to.