Portfolio Strategy Simulator

$650k — 1 Year Projection

Modeling SPX iron condor and Mag7 CSP/CC income strategies against a passive SPY benchmark. All scenarios start at $650,000 with weekly compounding.

Start capital: $650,000
IC delta: 0.16 short
IC management: 50% PT / 100% SL
SPY benchmark: 11% annualized
Horizon: 12 months
01 — Iron Condors

How SPX weekly income is generated

An iron condor is a four-leg options structure that profits when the underlying stays inside a defined range. You collect premium upfront and keep it if price never touches your short strikes. It's a bet on nothing dramatic happening.

P&L AT EXPIRATION — SPX EXAMPLE
$0 max profit (keep full credit) max loss max loss -$4.5k +$220 long put 5350 short put 5400 SPX now 5500 short call 5600 long call 5650 PROFIT ZONE price stays inside → keep premium too far down too far up 0.05Δ 0.16Δ 0.16Δ 0.05Δ 50pt wing 50pt wing
THE FOUR LEGS
BUY
Long put
Lowest strike. Your downside protection. Costs premium — defines max loss.
SELL
Short put
0.16Δ below market. Primary credit leg. Where you start losing if market drops.
SELL
Short call
0.16Δ above market. Primary credit leg. Where you start losing if market rallies.
BUY
Long call
Highest strike. Your upside protection. Costs premium — defines max loss.
WHY 0.16 DELTA
Delta ≈ probability of expiring in-the-money. Selling 0.16Δ means each short strike has roughly an 84% chance of expiring worthless. Two strikes = ~70% combined probability of full profit.
50% PROFIT TARGET
Close when you've captured half the max credit. Statistically proven to increase win rate and capital efficiency — you free up margin faster and avoid gamma risk near expiry.
100% STOP LOSS
Close when the position has lost 2× the credit received. Prevents runaway losses on tail events. On a $220 credit, that means closing at $440 debit — a defined, manageable outcome.
WHY SPX
Cash-settled (no assignment risk), European exercise, Section 1256 tax treatment (60% long-term / 40% short-term regardless of hold time), and the deepest options liquidity in the world.
EXAMPLE TRADE MATH — $650k, SPX ~5500, 50pt wings
Margin per contract
~$4,780
$5,000 − $220 credit
Contracts (70% deployed)
~95 contracts
$455k of $650k used
Credit collected
~$20,900
95 × $220 per week
Win at 50% PT
+$9,975
close at $110 debit/contract
Loss at 100% SL
−$41,800
close at $440 debit/contract
Break-even win rate
~80.7%
loss / (win + loss)
02 — The Wheel Strategy

How CSP/CC income is generated

The wheel is a systematic options income strategy that cycles between selling cash-secured puts and covered calls on quality stocks. Each phase generates premium — the goal is to collect income whether or not shares are ever assigned.

PHASE 1 Sell CSP Cash-secured put on target stock +premium collected at expiry expires OTM keep premium repeat → assigned PHASE 2 Own Shares Shares assigned at strike price cost basis reduced PHASE 3 Sell CC Covered call against owned shares +premium collected at expiry OTM — keep shares, repeat CC called away → sell CSP again
CASH-SECURED PUT
Sell the right to put shares to you at the strike. You collect premium upfront. If price stays above strike — you keep the cash, done. If it drops below — you buy shares at that price (your target entry anyway).
COVERED CALL
Once you own shares, sell the right to buy them from you at a higher strike. You collect premium. If the stock stays below your strike — keep shares and repeat. If it runs past — shares get called away at a profit.
WHY MAG7
High implied volatility = rich premiums. Deep liquidity = tight bid-ask spreads. Strong fundamentals = you don't mind owning the stock. Weekly expirations available on all of them.
THE REAL RISK
Assignment during a sharp drop means holding shares well below your strike. The premium partially offsets this but doesn't eliminate it. The wheel works best on stocks you'd genuinely hold long-term.
EXAMPLE INCOME MATH — $650k on AAPL (~$220/share)
Contracts (~70% deployed)
~20 contracts
$455k of $650k used
Weekly premium per CSP
~$1.50–$2.50
0.16 delta, 7 DTE
Weekly income
~$3,000–$5,000
20 contracts × $200 avg
Monthly (4 cycles)
~$8,000–$12,000
matches model assumptions
03 — Portfolio Locations

Where each strategy lives

Different strategies have different platform requirements. Here's how the $650k is split across brokers and why.

Robinhood
0DTE · CSP · PERSONAL
0DTE spreads Cash-secured puts
Personal trading
WHY ROBINHOOD
Very low fees with Gold membership. Good APY on idle cash sitting as collateral. Fast mobile execution for short-duration trades that need quick entries and exits.
tastytrade
IRON CONDORS · PRIMARY
Weekly SPX ICs Bracket orders
WHY TASTYTRADE
Best platform for multi-leg options. Bracket trading lets you set the 50% profit target and 100% stop loss simultaneously at entry — true set-and-forget IC management without babysitting.
tastytrade IRA
INHERITED IRA · CC/CSP
Covered calls Cash-secured puts
WHY TASTYTRADE IRA
tastytrade allows options trading inside inherited IRAs — a rare feature. Inherited IRA cash that would otherwise sit idle can generate CC/CSP income tax-deferred, compounding inside the account.
04 — Allocation Split

CSP/CC vs Iron Condor mix

Toggle the allocation between Mag7 CSP/CC income and SPX weekly iron condors. Both halves compound. IC half grows contracts as balance increases. CSP/CC half reinvests premium weekly.

CSP/CC 50% IC 50%
SPY hold
Bear (75% WR)
Base (82% WR)
Bull (87% WR)
Portfolio growth chart.
05 — Premium-Funded ICs

CSP/CC income funds the condors

The full $650k stays in Mag7 CSP/CC. Only the monthly premium generated ($8k/mo) is recycled into SPX iron condors. The base capital is never at risk from IC losses — the worst case is the IC overlay adds nothing.

SPY hold
CSP/CC only
Bear (75% WR)
Base (82% WR)
Bull (87% WR)
Premium funded IC chart.
The lines cluster tightly because the IC pool starts small (~$1,846/wk) and can only run 1–2 contracts initially. Pool losses set back the timeline. The floor is always the CSP/CC baseline — IC losses cannot touch the $650k principal.
06 — IC-Funded CSP/CC

IC profits build the CSP/CC position

The full $650k stays in SPX iron condors all year. Each week's net IC profit is swept into a Mag7 CSP/CC pool, which compounds via SPY appreciation and its own growing premium yield. A losing IC week adds nothing to the pool but never drains it.

SPY hold
IC only (no sweep)
Bear (75% WR)
Base (82% WR)
Bull (87% WR)
IC funded CSP/CC chart.
IC base ($650k) compounds weekly — more contracts as balance grows. Positive weekly P&L sweeps into the CSP/CC pool. The pool grows via SPY appreciation + its own yield. Losing IC weeks pause contributions but never reverse the pool.
Model Assumptions
IC credit collected$220/contract (50pt wings)
IC stop loss$440 (2x credit, 100% SL)
IC margin per contract~$4,780
Capital deployment70% of IC allocation
Win rates modeled75% / 82% / 87%
CSP/CC income$8,000/month (compounding)
CSP/CC compoundingPremium reinvested weekly
SPY benchmark11% annualized (historical avg)
Tax / commissionsNot included
FrequencyWeekly ICs, weekly compounding