May 24, 2026
Monthly UpdateMay 2026: The Month Everything Got Called Away
Both SCHD and VTI assigned. $1.95 million in cash. The wheel keeps turning.
Well, this is a first.
In the five years I've been running this strategy, I've never had both positions assigned in the same month. May 2026 changed that. My 48,500 shares of SCHD and 1,100 shares of VTI were both called away within days of each other.
I'm now sitting on nearly $2 million in cash, earning money market interest while I figure out my next move.
Here's what happened.
The Numbers
What Happened: The Timeline
The Trades
Portfolio Status
For the first time in years, I own zero shares of anything.
The "Lost" Upside
Let's talk about the elephant in the room.
SCHD was trading at $32.83 when my shares got called away at $32. That's $0.83 per share I "missed" — or about $40,255 on 48,500 shares.
If I want to buy back the same number of shares today, I'd need an extra $40K I don't have. At current prices, my $1.55M buys 47,273 shares — roughly 1,227 fewer than I had.
This is the opportunity cost of covered calls. I accepted it when I sold the contracts. I collected premium all year knowing this could happen.
The trade-off: I earned ~$55K in SCHD options premium YTD. I "lost" ~$40K in upside. Net: still ahead by ~$15K, plus I had income every month instead of hoping for appreciation.
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 | $7,600 | $0 | $7,600 |
| May | $6,600 | $0 | $6,600 |
| YTD Total | $61,852 | $18,949 | $80,801 |
About $81K in income through May. On track for my annual target, though June will look different since I'm rebuilding positions.
What's Next
The VTI side is simple: I have puts open at $360. If VTI drops below $360 by June 18, I get assigned and own 1,100 shares again. If not, I keep the $5,280 premium and sell more puts.
SCHD is the bigger question. With $1.55M to deploy and the stock up 18% YTD, I'm weighing my options carefully. Do I chase the rally and buy back in now? Or do I sell puts at $32, earn money market interest, and wait for a pullback?
I'll write more about that decision process in a separate post. For now, the cash is earning 3.2% annually (~$4,100/month) while I think.
"Getting called away isn't losing. It's the strategy working as designed. Now I get paid to wait for re-entry."
Lessons This Month
1. Dual assignment happens. When the market rips higher, covered calls get assigned. That's the deal. I collected premium all year; now I deploy cash.
2. Money market is your friend. At 3.2%, sitting in cash isn't dead money. I'm earning $4K+/month doing nothing. That buys time to make good decisions.
3. The wheel keeps turning. Assigned? Sell puts. Get put? Sell calls. Rinse and repeat. Five years in, the process is automatic.
The wheel keeps turning.
— Russell