Since late May, I used Claude to create an automated trading app on Alapaca.Markets. As you know, I went on vacation in July and just returned in November so I literally did nothing with this automated trading platform. During my vacation I did check in and noticed orders weren’t going in and discovered that my computer sending the trades had lost power and didn’t automatically restart so it missed a few weeks of trades.
This is all paper trading to test the algorithms and trading execution so keep that in mind.
The portfolio started with $100k in paper money. The strategy was to trade weekly put credit spreads on an index.
From May 21 thru Nov 4, the trading bot mad 2.56% return. I don’t consider this a spectacular return for 100k investment and I’m not sure how much of a difference that flat line in September would have made.
A better alternative investment with a lot less risk would have been TLT. If the same money had been taken and invested using a covered call strategy:
- Initial investment: $100,000
- Holding period: May 21–November 5 (168 days)
- Approximately 3.73 45-day periods
- Option premium: $1 per share per period
- Dividends: $2,319.77
I assumed the calls expired worthless or were rolled without assignment, retained all TLT shares.
Covered-call income
1,187 shares, allowing 11 standard option contracts (1,100 shares) covered.
| Item | Amount |
|---|---|
| Contracts sold per cycle | 11 |
| Premium per share | $1.00 |
| Premium per cycle | $1,100 |
| Completed/initiated cycles | 4 |
| Total option premium | $4,400 |
The fourth premium assumes another call on October 3, though that option had not yet reached expiration by November 5.
Total portfolio value, including income
$103,537.63 +3.54% total return
TLT market value $96,817.86
Dividends $2,319.77
Covered-call premiums $4,400.00
Total profit +$3,537.63
The actual dividends + call option premium would be $6,719.77 but the calculation takes into account that TLT is down from the original purchase price and assumes the liquidation value today.
Where My Real Money Trades
I currently have about 5700 shares of TLT and it’s been generating $1900 month in dividends and anywhere from $3000 to $5000 in call option premium per month. TLT had been dropping in value as inflation rose over the past 12 months so I’ve strategically bought shares and sold calls. TLT is one of the highest volume option call trades and listed as #6 on this list here. A few people I follow online trade this too and I like to ‘follow the money’ when it makes sense.
ETF options volume in 2026
rank symbol avg_daily_volume etf_name
1. SPY = 2,760,570 = SPDR S&P 500 ETF Trust
2. QQQ = 1,534,038 = Invesco QQQ Trust Series 1
3. IWM = 419,827 = ISHARES RUSSELL 2000 ETF
4. SLV = 217,475 = iShares Silver Trust
5. IBIT = 189,894 = iShares Bitcoin Trust
6. TLT = 171,140 = ISHARES 20+ YEAR TREASURY BOND ETF
7. GLD = 123,519 = SPDR Gold Shares ETF
8. TQQQ = 76,787 = PROSHARES ULTRAPRO QQQ
9. USO = 60,718 = United States Oil Fund
With Congress changing hands this week, it’s likely inflation may start coming down and that will cause TLT to potentially rise in value.
What’s Next?
I will continue to let Alapaca and the trading bot run for 1 full year and compare it to the much lower risk TLT trade and then make decisions accordingly.
UPDATE: I wrote this post early in the day before the market had a major meltdown yesterday. My paper account is now below $100k!
Share The Wealth
Are you trading with AI yet? Let me know in the comments below.