EVGO Weekly Options Strategy Recap
Stock Price: ~$4.16 (as of June 10, 2025)
Starting Capital: $5,000
Strategy Summary: Sell in-the-money (ITM) weekly puts, allow assignment, then sell both covered calls and new ITM puts weekly thereafter.
🔍 Probability of Profit (POP)
- Sell $4.50 PUT when stock is ~$4.20
- Collect ~$0.45 premium → Breakeven: $4.05
- Estimated POP: ~70–80% due to buffer from premium
📈 Strategy Flow
- Week 1–4: Sell 1–2 ITM puts, collect ~$45 each → ~$200 in weekly income
- Week 5: Assigned at $4.50 → Cost basis ~$4.05
- Week 6+: Sell weekly covered calls + new ITM puts
- Use growing collateral and margin to increase contracts over time
📊 Hypothetical Results Over 52 Weeks
| Week | Capital | # Contracts | Net Credit/week* | Cumulative Profit |
|---|---|---|---|---|
| 0 | $5,000 | — | — | $0 |
| 1–4 | $5,000 | 1–2 | ~$200 | $800 |
| 5 | $5,800 | 2 | ~$360 | $1,600 |
| 6–52 | Growing | 3–4 | $300–$500 | $7,500–12,500 |
*Net credit = premium – fees – potential margin costs. Weekly return estimate: ~2–5% of deployed capital.
💡 Summary
- Strategy can generate consistent weekly cash flow
- Uses assignment and compounding to scale over time
- Possible ending balance: $12,500–$17,500 after 1 year
⚠️ Key Risks
- Assignment risk and capital lock-up
- Stock volatility (e.g., EVGO has had 10%+ weekly moves)
- Margin requirements and market downturns
- Transaction fees may reduce actual profits
Done correctly, this method demonstrates how options can generate income and grow capital using small weekly moves, especially in lower-priced stocks like EVGO.