North Star Strategy Desk

Weekly Income Strategies

This page is the human-readable source for the weekly strategy north star. The desktop Strategy tab consumes the structured weekly plan, enforces the same guardrails, persists strategy runs locally, and reconciles live status and P&L against TWS.

Current Weekly Plan

Weekly Income North Star

Week of 2026-04-14 · generated 2026-04-14T12:00:00Z

Package weekly-income-2026-04-14 · schema v2

Allocate capital into liquid, theta-positive weekly structures that can be reviewed and approved from the client strategy manager.

Document

North Star

Trading Agent North Star

Weekly Premium Income Strategy — Covered Calls & Cash-Secured Puts

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MISSION

Generate consistent, repeatable weekly income by selling options premium on high-IV, liquid stocks. Upside is intentionally capped. The goal is not home runs — it is guaranteed, compounding cash flow with defined, manageable risk.

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STRATEGY

Primary vehicles: Cash-Secured Puts (CSPs) and Covered Calls (CCs), run as a Wheel Strategy. Expiry target: Weekly (5–10 DTE). Friday expiry preferred. Portfolio size reference: $50,000.

The Wheel:

Sell OTM cash-secured puts on stocks you're willing to own.
If assigned, immediately sell covered calls against the shares at or above your cost basis.
Collect premium every cycle. Repeat.

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STOCK UNIVERSE

Prioritize names with elevated IV (>40%), deep liquidity, and tight bid-ask spreads. Avoid earnings within the expiry window — always.

Ticker	Why
NVDA	High IV, institutional support, premier AI name
PLTR	Highest IV of large-cap tech, AI/defense momentum
AMD	Peer-trade to NVDA, solid IV, strong cycle tailwinds
COIN	Highest raw IV, Bitcoin-correlated — size conservatively (1 contract max)
SPY	Index anchor — use bull put spreads for defined-risk exposure

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ENTRY RULES

OTM buffer: Minimum 4% below current price for CSPs. 3% for SPY spreads.
IV minimum: Do not sell premium if IV is below 30%. Optimal range: 45–80%.
No earnings within expiry window. If a ticker reports before expiry, skip it entirely that week.
Use limit orders only. Enter at mid-price or better. Never use market orders on options.
Confirm live quotes at order entry — all premiums are estimates until filled.

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POSITION SIZING

No single position should exceed 50% of portfolio.
COIN: cap at 1 contract due to crypto gap risk.
SPY spreads: deploy with remaining capital after primary CSP positions are filled.
Target 90–98% capital utilization across 3–5 positions weekly.

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EXIT RULES

Profit target: Close at 50% of max premium collected. Do not hold to expiry on winners.
Stop / monitor trigger: If underlying moves more than 3% against your strike intraday, review and consider closing or rolling.
Rolling: If a position moves ITM with >3 DTE remaining, roll down and out (same strike, next expiry) to avoid assignment — unless you want the shares for the Wheel.

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RISK CONSTRAINTS

Never trade through earnings. This is a volatility event, not an income play.
No naked calls. All calls must be covered by shares or a long call hedge.
No uncapped downside. All CSPs must be fully cash-secured. Spreads must be fully defined.
COIN and high-beta names: Always size smaller. These can gap 5–10% overnight on macro/crypto news.
SPY spreads: Always enter both legs as a single spread order — never leg in separately.

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WEEKLY WORKFLOW

Monday morning: scan universe for IV rank, earnings dates, upcoming catalysts.
Select 3–5 plays. Confirm: OTM buffer ✓, earnings-clear ✓, IV > 40% ✓.
Enter all positions with limit orders at open or during first 30 minutes.
Midweek check (Wednesday): close any position at 50% profit. Hold others.
Friday: let OTM positions expire worthless or close for >$0.05 to free collateral.
Log every trade: ticker, expiry, strike, premium received, capital deployed, outcome.

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WHAT SUCCESS LOOKS LIKE

Weekly net premium: 1–2% of deployed capital.
Win rate target: >80% of positions expire worthless or are closed at 50% profit.
No catastrophic losses from earnings surprises or unchecked assignment.
Steady compounding — premium collected becomes the margin of safety for the next cycle.

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This is a premium-selling, income-first strategy. Upside is capped and that is by design. Consistency beats home runs.

Client Feed

Strategy Tab Payload

Plan weekly-income-2026-04-14

Allocation 70.0%

Instructions 3

Package weekly-income-2026-04-14

Schema v2

Integrity unsigned

Favor liquid underlyings where the bot can coexist with the weekly income book.

Use defined-risk spreads when assignment or share inventory is not desired.

Management rules should target early profit capture and controlled loss exits.

SPY CASH SECURED PUT

Sell SPY weekly cash-secured put

Harvest weekly index ETF premium below support while keeping assignment acceptable for a wheel workflow.

Expiry: 2026-04-17
Limit: $2.30
IV: 46.0%
Earnings: clear
Capital: $49000.00
Income: $230.00

SPY COVERED CALL

Overlay a weekly covered call on existing SPY shares

Monetize owned ETF inventory without introducing undefined short premium.

Expiry: 2026-04-17
Limit: $2.15
IV: 43.0%
Earnings: clear
Capital: $51000.00
Income: $215.00

$SPX BULL PUT SPREAD

Sell SPX weekly bull put spread

Defined-risk index premium capture keeps assignment risk capped while preserving weekly theta harvest.

Expiry: 2026-04-17
Limit: $8.00
IV: 31.0%
Earnings: clear
Capital: $1700.00
Income: $800.00

Authoring Contract

North Star Instructions

What The Website Must Provide To The Strategy Tab

This document defines the structured contract between the website and the desktop Strategy tab.

The markdown north star is the human-readable source. The JSON weekly strategy payload is the machine-readable source the desktop client actually executes.

Do not treat prose markdown alone as publishable client input. For each strategy increment, the site should publish a strategy package: one human-readable markdown brief plus one structured payload derived from the same package.

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Execution Model

The desktop Strategy tab does four things:

Reads the weekly strategy payload from the website.
Validates the payload against live TWS state and live option quotes.
Places approved orders through the existing TradingAPI.
Persists strategy runs locally while TWS remains the system of record for live positions and P&L.

Because of that, the website must provide explicit, structured fields instead of only prose.

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Recommended Authoring Workflow

For operator maintenance, the best unit of publication is not a loose markdown file.

It is a versioned strategy package for a specific date window, for example a two-week block.

Each package should contain:

one markdown brief for humans
one structured weekly plan payload for clients
the same plan_id, effective window, and instruction IDs across both artifacts

The strategies page should display the markdown brief. The desktop clients should consume only the structured payload.

If you want one AI prompt to generate the increment, ask it for both:

the human strategy brief
the structured instruction payload

The AI should not be allowed to stop at narrative commentary.

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Required Top-Level Fields

Every weekly payload should contain:

plan_id
title
generated_at
week_of
valid_until
objective
capital_allocation_pct
notes
instructions
metadata.strategies_page
metadata.north_star_document
metadata.north_star_instructions

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Required Per-Instruction Fields

Every instruction must provide:

instruction_id
strategy_type
symbol
title
thesis
expiry
target_dte
time_horizon_days
contracts
capital_required
projected_income
max_risk
order_type
entry_limit_price
minimum_credit
minimum_iv_pct
current_iv_pct
earnings_clear
next_earnings_date
otm_buffer_pct
max_position_pct
max_contracts
max_bid_ask_spread_pct
allow_assignment
wheel_phase
entry_window
underlying_price_reference
risk_summary
management.profit_target_pct
management.adverse_move_trigger_pct
management.roll_when_itm_dte_gt
management.review_every_minutes
management.exit_dte

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Strategy-Specific Rules

Cash-Secured Put

Must include:

right = "P"
strike
allow_assignment = true
wheel_phase = "SELL_CASH_SECURED_PUT"

The client will reject execution if:

order_type is not LIMIT
earnings_clear is not true for equity names
live IV is below minimum_iv_pct
live OTM buffer is below otm_buffer_pct
capital exceeds buying power or portfolio concentration limits

Covered Call

Must include:

right = "C"
strike
share_quantity
allow_assignment = false
wheel_phase = "SELL_COVERED_CALL"
metadata.share_cost_basis when available

The client will reject execution if TWS does not show enough shares or if the strike is below the live cost basis.

Bull Put Spread / Bear Call Spread

Must include:

explicit strike for the short leg
width
order_type = "LIMIT"
positive entry_limit_price and positive minimum_credit

Important:

The website should always send the spread credit as a positive dollar value.
The client will convert that into IB's signed BAG limit price internally.
The website should never send a negative combo limit price.

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Data Quality Rules

The site AI agent must not omit these fields just because the markdown north star already mentions them.

The desktop client needs them explicitly in JSON.

Earnings safety must be expressed as earnings_clear.
IV must be expressed as current_iv_pct.
Entry pricing must be expressed as entry_limit_price and minimum_credit.
Position concentration must be expressed as max_position_pct.
Order size caps must be expressed as max_contracts.
The expected live context must be expressed as underlying_price_reference.

If the site cannot determine one of those fields with confidence, it should not emit the instruction as executable.

JSON Template

Site-to-Client Payload Shape

{
  "capital_allocation_pct": 0.9,
  "generated_at": "2026-04-14T12:00:00Z",
  "instructions": [
    {
      "allow_assignment": true,
      "capital_required": 49000.0,
      "contracts": 1,
      "current_iv_pct": 46.0,
      "earnings_clear": true,
      "entry_limit_price": 2.3,
      "entry_window": "first_30_minutes",
      "expiry": "2026-04-17",
      "instruction_id": "SPY-CSP-2026W16",
      "management": {
        "adverse_move_trigger_pct": 3,
        "exit_dte": 1,
        "profit_target_pct": 50,
        "review_every_minutes": 30,
        "roll_when_itm_dte_gt": 3
      },
      "max_bid_ask_spread_pct": 20.0,
      "max_contracts": 1,
      "max_position_pct": 0.5,
      "max_risk": 48770.0,
      "metadata": {
        "source_page": "/strategies"
      },
      "minimum_credit": 2.15,
      "minimum_iv_pct": 30.0,
      "next_earnings_date": "",
      "order_type": "LIMIT",
      "otm_buffer_pct": 4.0,
      "projected_income": 230.0,
      "right": "P",
      "risk_summary": "Fully cash secured. Assignment is acceptable and transitions into the wheel.",
      "strategy_type": "CASH_SECURED_PUT",
      "strike": 490.0,
      "symbol": "SPY",
      "target_dte": 3,
      "thesis": "Harvest premium below support while remaining willing to own shares.",
      "time_horizon_days": 3,
      "title": "Sell SPY weekly cash-secured put",
      "underlying_price_reference": 510.0,
      "wheel_phase": "SELL_CASH_SECURED_PUT"
    }
  ],
  "metadata": {
    "north_star_document": "NORTH_STAR.md",
    "north_star_instructions": "NORTH_STAR_INSTRUCTIONS.md",
    "package_key": "weekly-income-YYYY-MM-DD",
    "package_signature": "",
    "package_status": "draft",
    "published_at": "",
    "strategies_page": "/strategies"
  },
  "notes": [
    "The strategy tab treats TWS as the live system of record.",
    "All option entries must be limit orders."
  ],
  "objective": "Short premium for repeatable weekly income with explicit north-star guardrails.",
  "plan_id": "weekly-income-YYYY-MM-DD",
  "schema_version": 2,
  "title": "Weekly Income North Star",
  "valid_until": "2026-04-18T20:00:00Z",
  "week_of": "2026-04-14"
}