Dragons Eye Moves
Newest moves are on top, older moves and setup are lower down the timeline.
Sep 23rd, 2025
In the early morning, I wanted to add some pieces I like to think of as “Insurance” to offset the positions held. These are SHORT CALLS which are considered BEARISH positions against SPLG.
Taking a short position, out of the money a short distance from the bullish short puts, is sort of like taking out an insurance policy against the base positions.
In this case, selling 5 short calls at $80 is effectively saying, if the price rises above $80, ALL of the short CSPs will be 100% successful, and I will deal with the consequences of being SHORT 5 calls at $80.
For now, I will leave the explanation at that. HOPEFULLY we end up in that situation, where the “insurance” is activated so I can show you how I deal with that, and turn the “loss” of that singular event, into a huge win.
Here is the updated positions list after taking several short calls on, not too many, as the thesis of this position is to be mostly bullish to the S&P500. The positions are now at the max that the portfolio will allow, other than maybe adding some more short calls for November/December, which could happen, but for now I think the positions are set, and we will be waiting for a few weeks to pass, and as we get close to October 17th, when some actions will become necessary.
Sep 22nd, 2025
When the market opened on Monday September 22nd, it felt like it was a good opportunity to “get in” with this strategy that I’d been planning out. The morning is always a bit hot when it comes to option pricing, so this is to my advantage if I also get the direction right. This is especially true on the leading expiry cycle, which in this case is October 17, now only 24 days away.
Here are the positions setup for the next 4 months. There are some more moves pending.
The orange colored lines are the higher priced targets, and I have them showing a bit of heat because they’re the hardest targets to be ahead of for the CSPs (Cash Secured Puts) to overcome to be 100% profitable. As the price goes down into the $77 and $76 ranges, it’s an easier level to foresee the S&P being above by those dates.
There is a little bonus in the action from yesterday as the total premium received for taking on this “risk” provided the ability to buy 122 more units of our “risk free” base SGOV and those will add about $1.20 per day of interest income.
Tomorrow I plan on adding a SHORT CALL component, which is a “bearish” notion. This will be used to take on some “insurance” against the position that can provide some income in the event the goals are not met in their target months.
Sep 22nd, 2025
When the market opens on Monday, I will give it some time to settle, and aim to begin selling options on the Oct 17th expiry first. This is only 25DTE (days to expiry). Then I will look to Nov 21st which is 60DTE and setup a few options there. After this, I will think about future months and decide what to do.
| October 17, 2025 | |||||||
|---|---|---|---|---|---|---|---|
| Short Put Options (Bullish, similar to buying stock) | |||||||
| QTY | Strike | ▲ | Price | Premium | BPE | Extrinsic | ITM Risk |
| 8 | 76 | 0.23 | |||||
| 8 | 77 | 0.31 | |||||
| 4 | 78 | 0.43 | |||||
| Short Call Options (Bearish, similar to shorting stock) | |||||||
| QTY | Strike | ▼ | Price | Premium | BPE | Extrinsic | ITM Risk |
| 6 | 80 | 0.26 | |||||
Sep 19th, 2025
Sell all the accumulated bits of purchases I had been making with VOO. This had a return of 2.95% in only 1 month. That’s great, but I want to have this account focus on a balanced income growth strategy, and so the starting point for Sep 22nd next week shall be $201,184. This is what future reporting and benchmark tests will be based upon.
Before the end of the day, I used the entire balance to purchase SGOV. This “base” will now start to earn about 4% per year, however we are going to be constantly reinvesting the distributions from this, so likely the return can be compounded a little bit. More on that On October 1st.
Sep 19th, 2025
I transferred enough to reach $200K in this account from a long term fund that was previously earning around 10% per year, but with interest rate reductions the last 12 months or so, has dropped to a performance of about 8%. The goal is to create a fund that will generate 10% or more.
Aug 20th to 28th, 2025
With each deposit, I didn’t have enough to execute any significant trades, so I just deposited into VOO, a total market fund to allow some possible appreciation.
Aug 20th, 2025
I setup the account with Schwab around August 6th. It takes a while to verify identity and approve documents and tax jurisdiction etc.
On August 20th I began funding the account with small deposits that I could just to get things started. I’ve included even the smallest of details to show that it’s not just a matter of clicking on a page and getting started with no obstacles at all.
Dragons Eye
Dragons Eye Strategy Welcome to the landing page for the Dragons Eye Strategy. This is a project aimed at creating an income fund with the extra power of connecting some S&P500 performance. Here you can find links to the prospectus, explanations, and also a post explaining each move made with some commentary on it’s intentions …
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Expiry Cycle Explanation
Expiry Cycle Explanation September 21, 2025 This post explains in detail the important components of the setup, and activity around an expiry cycle and it’s related figures. Edit January 16, 2026 Short Put Options (Bullish, similar to buying stock) QTY Strike ▲ Price Premium BPE Extrinsic ITM Risk 8 76 0.32 $1.60 $1,274 -$7561 $1.62 …
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How SGOV Works
How SGOV Works SGOV – iShares 0-3 Month Treasury Bond ETFThis is a low-risk exchange-traded fund that invests in U.S. Treasury securities with maturities of three months or less. It is designed for cash management and portfolio stability, acting as a high-quality, liquid alternative to bank deposits, offering greater liquidity and potential yields than traditional …
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