📄 2026-05-06-paper-portfolio.md 8,794 bytes Wednesday 15:47 📋 Raw

Paper Portfolio — Midas CSP Simulation

Simulation Rules

  • Capital: $10,000 virtual
  • Max concurrent positions: 3
  • Sector diversification required: No two positions in same macro bucket
  • Strategy: Cash-Secured Puts only (no spreads, no margin)
  • Expiry ladder: Staggered to maintain deployment velocity
  • Target: 50 paper trades before live capital deployment

Portfolio Ledger

Position 1: RIVN $13 Put — OPEN

Field Value
Ticker RIVN
Sector EV / Automotive
Strategy Cash-Secured Put
Strike $13.00
Expiry June 18, 2026 (44 DTE at entry)
Entry date 2026-05-04
Days to expiry (today) 42
Premium received $0.40
Capital at risk $1,300
Breakeven $12.60
Entry stock price $15.02
Current stock price $14.69
Distance to strike 11.5% below current
Delta at entry 0.2058
Status ✅ OPEN — no adjustment needed

Position P&L (unrealized):
- If held to expiry and RIVN > $13: +$40 (3.1% on capital)
- Current mark likely ~$0.32-$0.35 (theta + stock down slightly = mixed)
- Paper unrealized gain: ~$5-$8 if closing today


Position 2: RGTI $15 Put — OPEN

Field Value
Ticker RGTI
Sector Quantum Computing / Speculative Tech
Strategy Cash-Secured Put
Strike $15.00
Expiry July 17, 2026 (72 DTE at entry)
Entry date 2026-05-06
Premium received $1.27 (at the mark)
Capital at risk $1,500
Breakeven $13.73
Entry stock price $19.14
Distance to strike 21.6% below current
Delta 0.2111
IV 98.70%
Chance of profit 71.45%
Status ✅ OPEN — executed today

Greeks:
- Delta: 0.2111 (~21% probability of ITM at expiry)
- Gamma: -0.0343 (acceleration risk moderate — lower than RIVN)
- Theta: 0.0164 (~$1.64/day time decay in your favor)
- Vega: -0.0247 (short vol — if IV drops from 98%, you win)

Trade Quality Assessment:
✅ Delta 0.21 — within target range, manageable assignment risk
✅ IV at 98.70% — extraordinarily high = very rich premium
✅ 71.45% probability of profit — favorable
✅ 72 DTE — extended theta runway, but capital tied up longer
✅ 21.6% OTM — deep cushion, needs major selloff to hit strike
⚠️ Wide bid-ask ($1.21/$1.32) — slippage risk on exit
⚠️ Low volume (181) vs. open interest (5,803) — liquidity concern
⚠️ 72 DTE ties up $1,500 for 2.5 months — opportunity cost

Annualized return if not assigned: ($1.27 / $1,500) × (365 / 72) = 42.9%

What this means:
- If RGTI stays above $15 through July 17: you keep $127 per contract (8.5% in 72 days)
- If RGTI drops below $15: you buy 100 shares at $15, true cost $13.73
- At $13.73 breakeven, RGTI would need to fall 28.3% from current $19.14

Scenario analysis:
| RGTI at expiry | Outcome | P&L per contract |
|----------------|---------|------------------|
| $22.00 | Expire worthless | +$127 |
| $18.00 | Expire worthless | +$127 |
| $15.00 | Expire worthless | +$127 |
| $13.00 | Assigned, immediate paper loss | -$73 |
| $10.00 | Assigned, larger loss | -$373 |
| $5.00 | Assigned, significant loss | -$873 |

Emotion checkpoint:
- RGTI at $13.73 true cost = owning a quantum computing spec play at ~$3B market cap
- This is a "moonshot" name — can you stomach a 50% drawdown if quantum hype cycle ends?
- The 98% IV means the market expects massive moves. You're betting it moves less than feared.


Position 3: CCJ — PENDING

Field Value
Ticker CCJ
Sector Uranium / Mining / Energy
Status ⏳ PENDING — capital constraint

Constraint: CCJ at $100-$105 strike requires $10,000-$10,500 capital. Current portfolio deployed = $2,800. Cannot add CCJ until:
- RIVN expires June 18 (+$1,300 freed), or
- RGTI closes early (target 50% profit = ~$0.63 buyback, frees capital faster), or
- We find smaller-capital uranium alternative (e.g., URA ETF options)


Capital Math

Position Capital Status
RIVN $13 $1,300 ✅ Deployed
RGTI $15 $1,500 ✅ Deployed
Reserve / dry powder $7,200 Available
Total allocated $2,800 28% deployed

Note: $7,200 is insufficient for CCJ at standard strike. We will ladder into CCJ in June when RIVN capital recycles.


Expiry Ladder

Date Event Capital Freed Cumulative Deployed
May 4 Open RIVN $1,300
May 6 Open RGTI $2,800
June 18 RIVN expires +$1,300 $1,500 (RGTI only)
June 20 Open CCJ Uses $10,000-$10,500 $11,800-$12,300
July 17 RGTI expires +$1,500 $10,000-$10,500
July 20 Open Position 4 Uses freed capital ~$10,000

Correlation & Risk Map

Position Sector Macro Sensitivity Correlation to RIVN Correlation to RGTI
RIVN EV Rates, consumer spending, oil prices Low
RGTI Quantum Tech sentiment, speculative capital Low
CCJ (future) Uranium Nuclear policy, commodity cycles, rates Low Very low

Portfolio beta to "growth selloff": Moderate. RIVN and RGTI both bleed if rates spike or risk-off accelerates. CCJ is more idiosyncratic (uranium-specific).

Portfolio beta to "EV sector dump": Only RIVN. Good diversification.


Key Metrics

Metric Target Current
Capital deployed 60-80% 28% ($2,800 / $10,000)
Max delta per position 0.30 0.21 (RIVN), 0.21 (RGTI)
Portfolio delta (notional) <0.25 ~0.21 (blended)
Sector concentration <50% in one bucket 0% — two different sectors ✅
Min OTM distance 10% 11.5% (RIVN), 21.6% (RGTI)
Min annualized return >15% 25.5% (RIVN), 42.9% (RGTI)

Week 1 Observations (RIVN) + Day 1 (RGTI)

RIVN — 2 days in

  • Stock down 2.2% from entry ($15.02 → $14.69)
  • Chopping sideways, no acceleration toward strike
  • Theta accumulating ~$0.94/day
  • Emotional state: likely calm — position working as designed

RGTI — Day 1

  • Stock at $19.14, deep OTM (21.6%)
  • IV at 98.7% — you sold insurance during a fear spike
  • Theta at $1.64/day — faster decay than RIVN despite longer DTE (higher IV)
  • Watch: Wide bid-ask means closing early may cost you. Plan to hold closer to expiry unless 50% profit comes fast.

Adjustment Triggers — RGTI

Trigger Price Action
Watch $17.00 RGTI approaching strike zone, monitor daily
Caution $15.50 Consider rolling down/out if thesis intact
Breach $14.00 (below breakeven) Decide: accept assignment or roll
Thesis break Quantum computing sector crash Cut loss, don't roll

Paper Trade #2 — Execution Notes

Execution time: 2026-05-06 ~15:45 UTC
Platform: Robinhood
Fill quality: Mid-market ($1.27 mark, filled at or near)
Emotional state: (Log while fresh)
- Excitement? RGTI is a "moonshot" name — did that feel different from RIVN?
- Anxiety? 98% IV is extreme — did that worry you or excite you?
- Comparison: How did this feel vs. RIVN entry? More conviction? Less?


Trade Velocity Tracker

Trade # Date Ticker Strategy Status
1 May 4 RIVN CSP $13 Jun ✅ Open
2 May 6 RGTI CSP $15 Jul ✅ Open
3 TBD (Jun) CCJ CSP $100-$105 ⏳ Pending
4 TBD (Jul) TBD TBD ⏳ Pending

Progress to 50 trades: 2 / 50 (4%)
Estimated pace: ~2 trades/month at current capital constraint. To hit 50 in reasonable time, we may need:
- Smaller-capital names to increase velocity
- A second $10K simulation book with different strategy
- Accepting 50 trades will take 18-24 months at this pace


Director Decisions — Post-Execution

  1. How did the RGTI execution feel? Different from RIVN? More/less anxiety?

  2. Profit-taking on RGTI: 50% max profit = ~$0.63 buyback. At that level, close and redeploy, or hold for full 71 days? (Note: Wide bid-ask may make early closure expensive.)

  3. Capital velocity: Are you comfortable with ~2 trades/month, or should we explore smaller-capital alternatives (SOFI $10, NIO $4) to increase trade count while staying under $10K?

  4. CCJ timing: Wait for June (post-RIVN expiry) with $100-$105 strike, or consider URA (uranium ETF) options at lower capital?


Portfolio updated: 2026-05-06 15:45 UTC