Below are the actions the bot will take after setting it up on your PeakBot account.

1. Check the stock you added to your Automated Portfolio to determine if shares are already owned.
   • If under 100 shares are owned, the bot will start by automatically selling put credit spreads.
   • If over 100 shares are owned, the bot will start by automatically selling call credit spreads.
2. Selling put credit spreads: This occurs on Mondays and Tuesdays between 11am-1pm EST.
   • The bot will sell a put at the strike that is closest to and greater than the 30 delta.
   • The bot will also buy a put at the strike that is closest to and greater than the 10 delta to create a spread.
   • The bot will not sell place an order to sell a spread if the estimated credit on the trade is less than $5 per contract.
   • By selling a spread, we limit the maximum loss to be the width of the spread in order to protect your account from a large drawdown.
3. Selling call credit spreads: This also occurs on Mondays and Tuesdays between 11am-1pm EST.
   • The bot will sell a call at the strike that is closest to and less than the 50 delta.
   • The bot will also buy a put at the strike that is closest to and less than the 20 delta to create a spread.
     • The bought call will be closed automatically on the day of expiration after 10am EST.
   • By selling a spread, we allow you to participate in the upside (via the bought call) in the case the stock greatly increases in value.

Note: We do allow a feature for expert traders to turn off the spread and sell naked options. Please contact us for more details if interested.

This strategy is designed to automatically handle assignment of shares. Please see the below scenarios for details.

1. When trading a put spread, if the stock price is greater than the bought put and less than the sold put at expiration, you will be assigned 100 shares per contract that you sold at the strike price of your sold put. You will need enough cash in your account to purchase these shares. When assigned shares, the bot will automatically start selling call credit spreads for you during the next trading window.
2. When trading a call spread, if the stock price is greater than the sold call at expiration, your shares of stock will be automatically sold (called away) at the strike price of your sold call. You will need enough shares in your account in the scenario they get called away. When shares are called away, the bot will automatically start selling put credit spreads for you during the next trading window.

Note, for more detail, please see the example trades below.

Your account must fit any of the below set of requirements in order to successfully automate the Wheel strategy with PeakBot.

1. Broker: Tradier
   • Account type: Margin
   • Option level: Level 3
   • Account value: No minimum
2. Broker: TD Ameritrade
   • Account type: Margin
   • Option level: Standard
   • Account value: No minimum

If you choose to automate this strategy 'naked' (expert traders only)

1. Broker: Tradier
   • Account type: Cash
   • Option level: Level 1
   • Account value: No minimum
2. Broker: Tradier
   • Account type: Margin
   • Option level: Level 4
   • Account value: $10,000 minimum
3. Broker: TD Ameritrade
   • Account type: Margin or cash
   • Option level: Covered
   • Account value: No minimum

Put Credit Spread Scenarios:

Please reference the below trade set up to understand the 3 potential outcomes for a put credit spread. For these scenarios, we use the ticker RIOT and will assume the we sold the $9 strike and we bought the $8 strike.

In order to make this trade, we are willing to secure $9,000 (the $9 sold strike multiplied by 10 contracts) of capital to purchase 1000 shares in the case of assignment (scenario #2).

As a results of the trade, we receive a credit of $0.19. When multiplied across the 10 contracts of the trade, the total credit (after fees) comes to $177, roughly a 1.9% return on your cash secured in just one week.

1. Expiring Worthless
   •  If on the day of expiration, RIOT's stock price ends above $9 (which is our sold put strike), we keep the full $177 credit and will sell a put credit spread again next week.
2. Getting Assigned
   • If on the day of expiration, RIOT's stock price ends between $8 and $9 (the strikes at which we set our spread), we will be assigned 100 shares per contract and will sell a call credit spread next week.
3. Limiting Loss
   • If on the day of expiration, RIOT's stock price ends below $8 (outside of our spread), we will experience a loss that is equal to the width of the spread, multiplied by the number of contracts held. In this case, the spread was $1 wide and we would realize a loss of $1,000 because we're trading 10 contracts. This spread protects your account from extreme downside. Based on the delta bought, there is statistically, roughly a 10% chance that this will happen on each trade. Next week the bot will sell a put credit spread.

Call Credit Spread Scenarios:

Please reference the below trade set up to understand the 3 potential outcomes for a call credit spread. For these scenarios, we use the ticker RIOT and will assume the we sold the $10.5 strike and we bought the $12 strike.

In order to make this trade, we must own 1000 shares of RIOT in the case the shares are called away (scenario #2).

As a results of the trade, we receive a credit of $0.20. When multiplied across the 10 contracts of the trade, the total credit (after fees) comes to $187, roughly a 1.9% return on the assumed price paid for the shares.

1. Expiring Worthless
   •  If on the day of expiration, RIOT's stock price ends below $10.5 (which is our sold call strike), we keep the full $187 credit, the shares that we own and will sell a call credit spread again next week.
2. Shares Called Away
   • If on the day of expiration, RIOT's stock price ends between $10.5 and $12 (the strikes at which we set our spread), our shares will get called away (we will be forced to sell) at $10.50 per share and will sell a put credit spread next week.
3. Upside Win
   • If on the day of expiration, RIOT's stock price ends above $12 (outside of our spread), our shares will get called away (we will be forced to sell) at $10.50 per share, our bought call will experience a gain and next week the bot will sell a put credit spread.

In all scenarios, the bot will sell the bought call on the day of expiration.

Below are the actions the bot will take after setting it up on your PeakBot account.

1. Sell Iron Condors (both a put credit spread and a call credit spread). This occurs on Tuesdays and Thursdays between 11am-1pm EST.
   • The bot will sell a put credit spread and a call credit spread with strike prices around the 20 delta.
   • The spread is set at $1.
   • By selling a spread, we limit the maximum loss to be the width of the spread in order to protect your account from a movements in either direction.
2. Monitor for adjusting entries and execute them if needed.
   • If the stock price falls below the sold put or rises above the sold call, the opposite spread will be close and a new spread will be opened at the existing spread's strike price to form and Iron Fly. Please see the below Example Trades for details.

This strategy is designed to automatically handle assignment of shares. Please see the below scenarios for details.

1. When trading a put spread, if the stock price is greater than the bought put and less than the sold put at expiration, you will be assigned 100 shares per contract that you sold at the strike price of your sold put. You will need enough cash in your account to purchase these shares. When assigned shares, the bot will automatically start selling call credit spreads for you during the next trading window.
2. When trading a call spread, if the stock price is greater than the sold call at expiration, your shares of stock will be automatically sold (called away) at the strike price of your sold call. You will need enough shares in your account in the scenario they get called away otherwise you will. When shares are called away, the bot will automatically start selling put credit spreads for you during the next trading window.

For more detail, please see the example trades below.

Please note, in the case of assignment, PeakBot does not automate any adjustments. It is up to you to manually handle positions after assignment 

Your account must fit any of the below set of requirements in order to successfully automate the Iron Condor strategy with PeakBot.

1. Broker: Tradier
   • Account type: Margin
   • Option level: Level 3
   • Account value: No minimum
2. Broker: TD Ameritrade
   • Account type: Margin
   • Option level: Standard
   • Account value: No minimum

Please reference the below trade set up to understand the 3 scenarios that can take place when automating the Iron Condor. For these scenarios, we use the ticker SPY and will assume the we sold the $$410 and $417 strikes and we bought the $409 and $418 strikes.

In order to make this trade, we only need $100 per contract because our spread is set at $1.

As a results of the trade, we receive a credit of $0.35. When multiplied across the 10 contracts of the trade, the total credit (before fees) comes to $355, roughly a 35.5% return on the margin needed to place the trade.

1. Expiring Worthless
   •  If on the day of expiration, SPY's stock price ends between $410 and $417 (which is where you set your spreads), we keep the full $355 (minus fees) credit and will sell another Iron Condor on Tuesday or Thursday.
2. Getting Assigned
   •  If on the day of expiration, SPY's stock price ends between $409 and $410 OR between $417 and $418, you may be assigned shares or forced to open a short position if you have enough margin in your account to do so. If you do not have enough margin in your account, your broker will force liquidate your position. Please note, in the case of assignment, PeakBot does not automate any adjustments. It is up to you to manually handle positions after assignment. PeakBot will sell another Iron Condor on Tuesday or Thursday.
3. Limiting Loss
   • If on the day of expiration, SPY's stock price ends below $409 OR above $418 (outside of our Iron Condor), we will experience a loss that is equal to the width of the spread, multiplied by the number of contracts held. In this case, the spread was $1 wide and we would realize a maximum loss of $1,000 because we're trading 10 contracts. However, the Adjusting Entry (below) will provide us with more credit and further reduce our cost. Based on the delta bought, there is statistically, roughly a 20% chance that this will happen on each trade. PeakBot will sell another Iron Condor on Tuesday or Thursday.
4. Adjusting Entry
   • If before expiration, SPY's stock price falls below $410 or rises above $417 (the strike prices of our sold contracts), the bot will close the far spread and open a new one and the opposite strike. For example, if the stock price decreased below $410, we would close out $417/$418 call credit spread and open a new call credit spread at $410/$411. We do this to earn some more credit to negate any potential loss. The same adjustment will happen in the opposite scenario whereby the stock price rises above $417. PeakBot will sell another Iron Condor on Tuesday or Thursday.