April has been a month of lessons. Low volatility meant thin premiums. I made some trades I probably shouldn't have. And I had to remind myself — again — that the wheel strategy rewards patience, not activity.
The Numbers (Month-to-Date)
What Happened: A Timeline
Sold covered calls on SCHD (485 contracts, $32 strike) for only $0.05 per contract. Total: $2,425. In hindsight, I got "jumpy" — I should have waited for better premium.
SCHD calls expired worthless (SCHD at $30.81). VTI calls were in-the-money at $346 — shares called away at $340. Profit on VTI trade: ~$6,457.
Sold new positions: SCHD $32 calls for May 22 at $0.10 ($4,850) and VTI $340 puts for May 15 at $2.50 ($2,750).
The Trades
The $0.05 Mistake
When implied volatility is low and premiums are thin, you have two choices: sell anyway and accept small income, or wait for better conditions. I sold anyway — and while it worked out (calls expired worthless), I capped my upside for a month in exchange for pocket change.
But here's the counterpoint I realized later: low premium = low IV = market expects sideways movement = low chance of assignment. It's not "crappy" money — it's safe money. Still, I'd set a personal minimum of $0.10-0.15 going forward.
VTI Called Away
VTI ran to $346, well past my $340 strike. Shares got called away. "Missed" another $6 per share of upside, but that's the trade-off. I collected $1,100 in premium plus $5,357 in capital gains. Now I'm selling puts to get back in.
Current Positions
The Dividends
No dividends this month. The SCHD (ex-date March 26) and VTI (ex-date March 27) payments landed in March, not April — see last month's update for the details. April is an off-month in the quarterly cycle.
Portfolio Status
| ETF | Shares | ~Value |
|---|---|---|
| SCHD | 48,550 | ~$1.52M |
| VTI (cash for puts) | — | ~$374K |
| Total | ~$1.89M |
Year-to-Date Summary
| Month | Options | Dividends | Total |
|---|---|---|---|
| January | $31,930 | $2,286 | $34,216 |
| February | $12,197 | $0 | $12,197 |
| March | $3,525 | $16,663 | $20,188 |
| April (MTD) | $7,600 | $0 | $7,600 |
| YTD Total | $55,252 | $18,949 | $74,201 |
About $74K in income through mid-April. On track for my annual target of ~$150K.
Lessons This Month
I also caught myself almost rolling positions too early to "capture more premium." The extra few hundred dollars wasn't worth the complexity and risk. Let positions expire. Keep it simple.
Looking Ahead
May will be another off-month for dividends (quarterly cycle). SCHD ex-date should be late June, so I need to be careful about covered call expiration dates as we get closer. Don't want to get called away right before dividend.
The wheel keeps turning.
— Russell