1,000 days of options trading: Why I’m Quitting Now

As an avid reader of this wonderful forum, you have certainly come across my thread describing my first steps and experiences in options trading: My Option Odyssey: Personal Experiences, Numbers, and the Path Forward after Year One

After 1,000 days, I decided to quit. Perhaps you will find it beneficial to know my reasons for doing so. Just listen to the following conversation.

Larix, were you unhappy with the returns? No, not at all. At the beginning of 2023, I started with a dedicated options account of about $50,000. I am concluding my journey with a total return of $39,500 (see the table below). So, 80% return in under three years. In Swiss Francs, this corresponds to an IRR of 25% per annum. During the same period, my broad and boring ETF portfolio earned only 6.6% per year in CHF. I’m very happy with the return of the options.

Ticker # contracts Premium Stock price Total
NVDA 32 5’754.48 4’320.55 10’075.03
AMD 28 3’559.94 4’399.50 7’959.44
GOOG 33 3’300.61 1’238.00 4’538.61
IWM 32 4’448.15 -54.90 4’393.25
TSLA 18 3’056.77 250.00 3’306.77
UNH 11 2’472.86 750.00 3’222.86
MSFT 8 1’384.96 0.00 1’384.96
KO 12 857.03 464.50 1’321.53
CRM 7 1’257.89 0.00 1’257.89
AMZN 5 578.73 0.00 578.73
NVO 2 399.74 0.00 399.74
QQQ 2 236.82 0.00 236.82
AZN 4 162.80 0.00 162.80
V 1 143.60 0.00 143.60
SONY 6 328.83 -200.00 128.83
AMAT 1 114.90 0.00 114.90
MU 1 107.88 0.00 107.88
ABBV 1 99.94 0.00 99.94
SPY 1 40.62 0.00 40.62
TOTAL 205 28’306.55 11’167.65 39’474.20

Couldn’t you stomach the risk and volatility, then? No, not at all. I went through a long and painful period when NVDA and AMD were down 30–40% in early 2025. At that time, I owned 400 shares of these stocks and didn’t have any more capital to continue selling cash-secured puts. I couldn’t sell any meaningful covered calls either. So, I waited patiently for these two stocks to recover, which they did in a big way in the summer of 2025. After all, NVDA and AMD have been my two most productive underlying assets.

Was it too complicated? No, not at all. Options trading may seem complicated, and there are indeed very advanced and complex strategies. Simply selling cash-secured puts and covered calls, as I did, is pretty straightforward. After the first couple of contracts, I quickly got the hang of it and continued to trade only on the IBKR mobile app. I never had any technical issues or difficulties.

Did it take too much time? Now, we’re getting closer … The actual trading doesn’t take much time once you have a solid watchlist of your preferred underlying assets. I had around 15–20. I used to trade on Mondays for contracts two or three weeks out. In theory, one hour per week would have been enough to implement this strategy.

So, what was the problem? Instead of letting the options run, I developed a complicated algorithm to optimize closing contracts before expiration that required daily monitoring. I spent hours following my tickers and experienced mood swings according to market movements. One Friday night, I spent two hours watching to see if a stock would be assigned or not. I decided that things had spun out of control and that I was developing unhealthy habits. My decision to quit options trading was like pulling the emergency brake on an uncontrollable train.

How do you feel now? Better. I deleted my entire watchlist. I no longer care whether NVDA or TSLA is up or down by 3% for the day. I still spend too much time on the IBKR app, but I’m confident that focusing only on my base strategy of keeping my ETF portfolio at around 45% of my net worth will calm me down and allow me to focus on what’s important in life.

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Question: what would your return have been if you during this period simply held the underlying shares, weighted by the respective contract count per share you had (over the entire period?) and with quarterly rebalancing?

Reason why I ask - did you overperform because of the option writing as such, or because of your exposure to a selection of shares that exhibited higher returns than your boring ETF Portfolio?

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Thanks for sharing. This is basically why I’m hesitant to do anything other than “buy VT and hold forever”, because deviating from that at all will open a Pandora’s box of ways to get obsessed and overthink things

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Congrats on having arrived at the right conclusion for yourself! Obsessing over investments and allowing them to swing your mood seems unhealthy.

I continue selling options, but really only as a hobby. I’m not losing any sleep over them, let alone feel like I need to look at them daily or for hours near expiry.

I probably differ in a couple of ways with my approach:

  • I only sell puts for underlyings that I want to have in my stock picked portfolio, either existing not yet full positions or new ones that I want initiate. If I get assigned, I’m thus fine with that.
    Assignment has happened in previous years, but not yet this year.
  • I only sell puts on volatile days for the underlying to garner the premium with the additional “fear factor” on those days.[1]
  • I only sell long dated puts, preferrably 6-12 months till expiry.
  • I usually pick a strike 10-20% below the underlying’s current price and I want to see a premium that is equivalent to dividend yield of the underlying at the time of selling the put (over the time till the expiry).
  • I’ve automated buying back the put (since @larix.aurea’s advice to buy back my UNH put earlier this year) in a simplistic way: upon selling the put I immediately enter a GTC buy back order for 1/4 of the premium that I garnered.
    This past Friday a buy back for a MRK put I sold in February triggered automatically for the first time.
  • My puts aren’t cash backed, but treasury backed, which generates about 4.5% (annualized) for the treasuries I hold.
  • I stagger my risk exposure over the timeline such that assignment risk spreads out over time.
  • I occasionally sell puts with strikes exceeding my collateral but only in very rare cases when I’m convinced this is just Mr Market having a bad day (e.g. see my LMT put in the footnote[1])

Things not yet automated:

  • making sure that the strikes occurring at the same expiry date don’t exceed my collateral – and if they do, warn me closer to the maturity date to buy one of the options back if necessary.
    I currently watch this manually, which is of course error prone.
  • notify me (to potentially sell a put) when one of my holdings or desired holdings has a bad day, e.g. a 5% drop or more.
    I currently will see those drops only when I actively look at the portfolio, which I do regularly, but not daily.

My cash collected YTD on $16k collateral: $2561.87

  • $587 in interest on the collateral
  • $1974.87 in option premiums[1, 2]

This is about equivalent to an annualized cash return of maybe 20%?

For everyone excited about wanting to compare this to the VT, VOO, QQQ, Bitcoin or Gold return had I invested $16k on Jan 1 2025 into these assets (or any other asset), keep in mind that the accrued cash accumulated by the options sat in the IBKR account regardless of whether I wanted to access it on April 4 2025 or today or on any other day. Ditto for the collateral and the, ahem, option – no pun intended – of buying back all short options if I somehow felt like it.

Similarly …

If we only had some sufficiently advanced AI which could calculate this … I leave it as an exercise to the reader to do this calculation for my puts sold in 2025[1] (of course you can consult any AI you’d like to consult).

This comparison is probably more interesting for my options approach (as I really actually want to own the assets that I sell puts on) but perhaps less useful in the approach @larix.aurea chose as he did not necessarily want to own the assets he worked on with options (IIUC).

I think the question is only theoretically interesting anyway (for me, anyhow):

  • would I buy an asset that has just fallen 10% on a given day? Probably not. It might fall another 5% the next day.
  • would I sell a put option on an asset that just fell 10% on a given day? Absolutely, especially if the expiry is far enough in the future and the “fear” premium is beyond what I consider rational (see e.g. my UNH put sold).

YMMV, of course.


1   Puts sold so far 2025:

  1. BIPC 30P JUL25 sold for $102.93 on Jan 10 when the underlying's low was at $37.66 on that day.
    I don't even remember the bad news on that day.
    Bought it back on May 22 for $15.06.
    Annualized realized rate of return: 8.1% (plus close to 5% on the collateral).
  2. CMCSA 30P SEP25 sold for $144.19 on Jan 30 when the underlying's low was at $32.50 on that day.
    I don't even remember the bad news on that day.
    Bought it back on June 27 for $30.30.
    Annualized realized rate of return: 9.36% (plus close to 5% on the collateral).
  3. MRK 75P DEC25 sold for $283.18 on Feb 2 when the underlying's low was at $87.33 on that day.
    I don't even remember the bad news on that day.
    Bought back automatically on Oct 24 for $57.05.
    Annualized realized rate of return: 4.2% (plus close to 5% on the collateral).
  4. OZK 37.5P JAN26 sold for $218 on Feb 21 when the underlying's low was at $47.15 on that day.
    I don't even remember the bad news on that day.
    Bought back on Aug 27 for $51.05.
    Annualized realized rate of return: 8.69% (plus close to 5% on the collateral).
  5. UNH 160P DEC25 sold for $897.94 on May 15 when the underlying's low was at $248.88 on that day.
    Yeah, those days when UNH was going out of business real soon now ...
    Bought back on July 25 on advice from @larix.aurea for $131.06.
    Annualized realized rate of return: 24.64% (plus close to 5% on the collateral).
  6. SJM 80P OCT25 sold for $143.99 on June 11 when the underlying's low was at $94 on that day.
    I don't even remember the bad news on that day.
    Bought back on July 28 for $24.95.
    Annualized realized rate of return: 11.56% (plus close to 5% on the collateral).
  7. LMT 380P DEC25 sold for $799.94 on July 22 when the underlying's low was at $410.11 on that day.
    I don't even remember the bad news on that day.
    Bought back on August 28 for $295.
    Annualized realized rate of return: 13.47% (plus close to 5% on the collateral).
  8. ES 55P APR26 sold for $178 on August 25 when the underlying's low was at $61.53 on that day.
    I don't even remember the bad news on that day.
    Still short. Current market value according to IBKR is -$129.33.
  9. EIX 47.5P APR26 sold for $249.75 on Oct 2 when the underlying's low was at $53.49 on that day.
    I don't even remember the bad news on that day.
    Still short. Current market value according to IBKR is -$59.50.

2   The ES and EIX options are still short and I’m indicating the price if I had bought them back already given IBKR’s pricing indication. Spreads, fees, etc are not yet taken into account, but both options are OTM and are slowely but surely crawling towards their standing buy-back price.

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I don’t have the skills or the data to answer your question with mathematical precision. But one thing is clear: it wouldn’t have been possible — nor was it ever my goal — to outperform my ETF portfolio using options on those same ETFs. Low volatility means low premiums, and in my case, there simply aren’t any options available on non-US ETFs anyway.

For me, options trading was a way to “stock-pick” without actually owning individual shares, and to build a sort of long-term portfolio around that idea. That’s a key difference from forum members like @Your_Full_Name, who use options to optimize their existing stock portfolios, or @cubanpete_the_swiss, who believes solely in the outperformance of his fully “mechanical” strategy and does not need to pick up pennies in front of a steam roller.

Anyway, the outperformance compared to my benchmark was real — but so were the negative psychological effects that ultimately led me to quit.

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Thank you for your insightful and detailed comment. You are totally spot-on, like always.

Happy to hear this. It’s a pragmatic way to optimize profits without becoming obsessed.

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I had similar experiences, a few years back, I found lots of great companies at great prices on the Australian exchange (ASX). But it meant that I was waking up early and checking my phone first thing in the morning. Or staying up late at night to trade on the ASX.

In the end, I decided to sell everything to keep my sanity and improve my health, but it felt bad knowing I was leaving a lot of money on the table.

EDIT: you made me look at the current prices now.

NCK bought for $5, now $25
CDA bought for $3, now $36
PWR bought for $3, now $9

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