Hey All, I'm wondering if there's any flaw in my current logic right now. I was looking at candidates to wheel and naturally SLV pops up.
Looking at premiums for weeklies, strikes about 10% down from the open today (62.5P - Jan 9) are earning about $30 - $40. Looking at historical data since 2010, the price of SLV closing Friday 10% lower than its opening price on Monday has happened 7 times (0.97% of the time looking at week where trading was opened Monday and Friday).
Am I missing something here? Seem like you can get 0.5%/week with a 99% probability you won't get assigned. If you want higher strikes, you can sell for -5% from the opening price today and that level of drop has only been seen 42 times (5.83%) in the past 15 years.