AcuBooth Case Studies

Real Scenarios — Three Case Studies

The following walkthroughs are based on real documented system behavior using NVDA as the illustrative underlying at a $180 reference price. Every filter, threshold, formula, and rule-evaluation below reflects how the software actually processes user-configured parameters.

This platform is for educational and informational purposes only. All outputs are hypothetical, do not represent personalized investment advice, and do not guarantee future performance. Users maintain full discretion and responsibility for all trading decisions.

Real documented behaviorNVDA at $180 reference priceUser-defined parameters enforced mathematically

TB-CS-001

Strike Selection — How the System Filters to the Best Call

Underlying: NVDA • Reference price: $180.00 • Mode: Preserve Equities ON • Earnings: 35 days away

System Inputs

Market Data

Underlying price$180.00

Days until earnings35 days

DTE window scanned7–30 days

Expirations surviving DTE filter9-DTE weekly, 16-DTE bi-weekly

Earnings filter resultNo expirations dropped

User-Selected Parameters

Shares held (coverage)100

ModePreserve Equities ON

Max delta cap (PE mode)≈ 0.22

Min net credit$0.40/contract

Max bid/ask spread$0.50 (relaxes to $1.25 if sparse)

Same-day strike floorNot triggered (no same-day closes)

Option Chain — Sequential Filter Results

Expiry / Strike	Delta	Mid	Spread	Status
9-DTE 185C	~0.28	~$3.30	tight	PENALIZED — delta borders PE cap; heavy EDM-Up adjustment
16-DTE 190C	~0.24	~$5.00	tight	LOWER SCORE — larger credit but lower annualized return; longer path risk
9-DTE 190C ★	~0.21	~$3.20	$0.10	HIGHEST ALIGNMENT — delta under cap, moderate credit, low EDM-Up
9-DTE & 16-DTE very-far OTM	<0.05	<$0.10	wide	DROPPED — trivial premium fails minimum credit floor
Deep ITM calls (165–170)	0.70–0.80	high	—	DROPPED — delta far above PE cap
9-DTE 200C	~0.12	$0.45–$0.90	wide	DROPPED — micro-liquidity and spread ceiling breached

Why 9-DTE 190C Wins

longSharesCost = $180 × 100 = $18,000 openPriceBaseline = mark × openSpreadFactor = $3.20 × 1.02 = $3.26 (rounds to $3.25 after randomization) ROI (14-day) = openPrice ÷ longSharesCost = $3.25 ÷ $180 ≈ 1.8% Delta fitness: 0.21 ≤ 0.22 PE cap → PASS EDM-Up adjustments: modest (strike is 5.5% OTM from $180) 185C: heavier EDM-Up penalty, near PE delta ceiling → lower score 16-DTE 190C: lower annualized return after time-normalization → lower score 9-DTE 190C: best balance of credit, delta, and risk penalty → SELECTED

Rule Evaluation — Opening Gates

Gate 1Delta Cap (PE Mode)PASS

Delta ≈ 0.21 ≤ 0.22 preserve-equities ceiling. Deep ITM and very-far OTM strikes filtered out.

Gate 2Earnings WindowPASS

Earnings 35 days away. Both 9-DTE and 16-DTE expirations settle before the window. No expirations dropped.

Gate 3Bid/Ask & LiquidityPASS

9-DTE 190C: $3.10 × $3.30 market (spread $0.20). 9-DTE 200C: $0.45 × $0.90 — rejected on spread/micro-liquidity ceiling.

Gate 4Coverage & CapacityPASS

100 long shares = 1 lot coverage. No conflicting open orders. No same-day NVDA call close → no strike floor binding.

System Output

Candidate identified: SELL TO OPEN 1 NVDA 9-DTE 190C @ $3.25 LIMIT

The 9-DTE 190C registers the highest alignment metric across all surviving candidates. Delta is within the preserve-equities cap. EDM-Up adjustments are modest. Annualized return exceeds the minimum threshold. All opening gates pass.

No-Trade Counterfactual

If implied volatility had collapsed and the 190C mark dropped to $0.75, the pipeline would calculate: ROI ≈ 0.42% → fails minimum returnExpected floor. Low-IV penalty applied. No chain clears the viability floor → system outputs no viable chains. No order generated. Long shares retained uncapped.

TB-CS-008

Defensive Roll — ATR Proximity Trigger

Underlying: NVDA • Opened: 14-DTE 185C at $2.50 • Trigger: NVDA at $184, within 1 ATR of strike • Mode: Preserve Equities

Interactive Walkthrough — Click each step

Day 0 — 14-DTE 185C opened, NVDA at $180

Position opened at $2.50 credit. Strike $5 away from spot. ATR ≈ $6. Strike is 0.83 ATR from price.

strikeDistanceInATR = ($185 − $180) / $6 = 0.83 ATR ✓ Safe

Day 4 — NVDA rallies to $184. Strike now 0.17 ATR away

The 185 strike is only $1 from current price. One average daily move would reach it. Roll workflow triggered.

0.17 < 1.0 ATR threshold → ROLL TRIGGER ACTIVATED

Roll candidates evaluated — net credit constraint

Close 185C costs $4.80. System scans 21-DTE strikes for net credit. Must be further OTM than current strike.

21-DTE 190C: $6.20 − $4.80 = +$1.40 net → viable (closer strike) 21-DTE 195C: $4.40 − $4.80 = −$0.40 net → viable when cumulative is considered PE mode prefers 195C (higher strike = lower assignment risk)

Roll executes. Strike moves from $185 → $195

Buy to close 185C at $4.80. Sell to open 21-DTE 195C at $4.40. Preserve Equities selects higher strike.

New strikeDistanceInATR = ($195 − $184) / $6 = 1.83 ATR ✓ Cumulative premium: +$2.50 − $4.80 + $4.40 = +$2.10

Outcome — Shares intact, cumulative premium $2.10

Strike moved $10 higher to $195. DTE extended to 21 days. 1.83 ATR from current price. 0 shares assigned.

Step 1 of 5

Before Roll

$185

0.17 ATR from price
DTE: 7 • Delta: ~0.45
Assignment risk: HIGH

→

After Roll

$195

1.83 ATR from price
DTE: 21 • Net cumulative: +$2.10
Assignment risk: LOW

System Inputs at Trigger

Underlying price$184.00

Short call strike$185.00

Distance to strike$1.00

21-day ATR$6.00

strikeDistanceInATR($185 − $184) / $6 = 0.17

Roll trigger threshold1.0 ATR

185C mid-price$4.80

Original premium (Day 0)$2.50

Option-leg difference$2.50 − $4.80 = −$2.30

Unrealized stock gain($184 − $170) × 100 = +$1,400

ATR Proximity Formula

strikeDistanceInATR = (strikePrice − underlyingPrice) / ATR21 = ($185.00 − $184.00) / $6.00 = $1.00 / $6.00 = 0.17 Threshold: strikeDistanceInATR < 1.0 0.17 < 1.0 → ATR PROXIMITY RULE TRIGGERED Interpretation: at 1 ATR daily move, NVDA could reach $184 + $6 = $190 — well through the $185 strike.

Rule Evaluation

Rule 1ATR Strike ProximityTRIGGERS ROLL

0.17 ATR — NVDA can move $6/day. The $185 strike is only $1 away. Roll workflow initiated.

Rule 2PE Mode — Strike SelectionPASS

Preserve Equities weights toward higher strike (195C at $4.40) over 190C at $6.20. Less income, more upside room, lower assignment probability.

Rule 3Cumulative Credit PositivePASS

+$2.50 initial − $4.80 close + $4.40 new = +$2.10 total premium retained. Net credit floor satisfied.

Rule 4New Strike Further OTMPASS

$195 is 5.98% OTM — 1.83 ATR from current price. Substantially reduces assignment probability vs 0.17 ATR on the 185C.

System Decision

Roll: Buy to Close 14-DTE 185C / Sell to Open 21-DTE 195C

ATR proximity 0.17 triggered at threshold 1.0. Preserve Equities mode selects 195C for maximum strike headroom. Shares untouched. Strike +$10. DTE +14 days. Cumulative premium $2.10.

Counterfactual — If Roll Had Not Fired

If NVDA closed at $195 at expiry with no roll: shares assigned at $185. Option-leg loss: $2.50 − $4.80 = −$2.30. Rolling produced: strike $10 higher, 14 more days, cumulative +$2.10 premium, 0 shares assigned. +$2.10 cumulative vs losing shares at $185 with a −$2.30 option leg.

TB-CS-006

Early Close — Premium Capture Threshold Triggered

Underlying: NVDA • Opened: 30-DTE 195C at $3.50 • Day +10: NVDA at $188, 195C at $0.90 • Capture: 74%

Position Timeline

Day 0 — Opening

Underlying price$180.00

Strike sold195C (30-DTE)

Credit received$3.50 per share

Max option premium$3.50 × 100 = $350

Long shares coverage100 shares at $180

Opening gatesAll passed — liquidity, EDM/EPR, PE delta cap

Day +10 — Evaluation Snapshot

Underlying price$188.00

Remaining DTE~20 days

195C current mark$0.90

Captured dollars$3.50 − $0.90 = $2.60

Capture %$2.60 / $3.50 = 74%

Remaining premium$0.90 ÷ $180 ≈ 0.5% of underlying

Remaining annualized yield0.5% over 20 days ≈ 9%

Threshold Evaluation

capturePercent = (openPrice − currentMark) / openPrice = ($3.50 − $0.90) / $3.50 = $2.60 / $3.50 = 74% Configured capture trigger: ≥ 70% 74% ≥ 70% → CAPTURE TRIGGER MET remainingAnnualizedYield = (remainingMark / underlyingPrice) × (365 / remainingDTE) × 100 = ($0.90 / $180) × (365 / 20) × 100 = 0.005 × 18.25 × 100 = ≈ 9% Configured redeployment threshold: ≥ 12–15% 9% < 12% → INCREMENTAL YIELD TOO LOW — close now

Rule Evaluation

Rule 1Capture TriggerMET

74% ≥ 70% configured floor. Position has realized sufficient premium to evaluate early closure.

Rule 2Redeployment ThresholdFAILED

Remaining annualized yield ≈ 9% is below the 12–15% required to justify keeping the call open. Holding for $0.90 more is not worth capping upside on $188 stock.

Rule 3Replacement Call CheckNO CANDIDATE

After close, the pipeline re-runs on NVDA. Current chain: premium below configured minimums or risk metrics outside parameters. No replacement call is generated.

Rule 4Roll vs Pure ClosePURE CLOSE

A roll requires both: strong capture on the existing leg AND a clearly superior new candidate. Here only the first condition is met. System computes a pure close — no roll.

System Output

BUY TO CLOSE 1 NVDA 195C @ $0.90 LIMIT

Realized option P&L: ($3.50 − $0.90) × 100 = +$260. Position closed at Day +10 with 20 DTE remaining. 100 NVDA shares retained, fully uncapped.

Counterfactual — If Position Held to Expiry

Additional theta from $0.90 → $0.00 = +$90 more. But NVDA could reach $195 and trigger assignment (shares called away at $195). Risk of $7 more upside forfeited beyond $188 current. System calculates: +$90 remaining theta < risk of capping a $188 stock at $195. Early close preferred.