It focuses on systematic covered calls and cash-secured puts to apply risk management and repeatable rules so it can survive bad markets and keep compounding over time. Traders blow up because they oversize, chase premium, override exits, or take trades they should have skipped. PutHouse avoids those mistakes.
What it does PutHouse connects to a brokerage account through Alpaca (a YC company, $320m total funding) and automatically looks for covered call and cash-secured put opportunities.
Before entering any trade, it checks things like: - 0.05 to 0.15 delta - 7 to 14 DTE - VIX index - Minimum VRP ratio of 1.10 - Open interest - Bid/ask spread - IV at least 30% - Earnings and event risk - RSI - Position size - Existing underwater positions
If a trade does not pass the filters, it simply does nothing which is the same as buy and hold.
Strategy This doesn’t do the wheel because I don’t want to get assigned. I want long-term stock growth to compound and the 1% options premium in the screenshot is an added income layer on top of the stock growth.
Exit rules include: - Take profits at 50% - Cut risk if delta reaches 0.30
Risk controls PutHouse caps cash-secured puts by account size, limits the number of contracts per symbol, and avoids covering too much of a stock position with calls.
It's assumed that losses (on options income) are inevitable. It’s the cost of doing business like an insurance business paying out claims. The point is to size trades so losses are survivable. The great part is you still hold the stock for compounding and upside.
Backtesting The strategy has been backtested on market data going back to 2012 to stress test the rules across different volatility regimes and it showed a net profit. The backtest includes fees, spreads, and exit assumptions.
Why automation matters Covered calls and cash-secured puts are simple strategies that anyone can do manually. But automation consistently manages risk by removing second guessing, revenge trading, and anxiety. Plus, you save A LOT of time each day.
What makes it different Most brokerages optimize for engagement and give traders more information. PutHouse is optimized for profitable outcomes.
Notes The product is live with users averaging around $50k in account size. I personally trade my $650k portfolio with it.
The options income is a layer on top of long-term stock ownership for reinvesting profits and compounding stock appreciation.
The default mode is conservative to stay safe-first because traders underestimate how fast small mistakes compound in the wrong direction. But I’ll add a toggle for users who want to trade with more risk or configure their own parameters.
Happy to answer questions, especially around anything you guys are skeptical about.