HomeCase StudiesTrade Scenarios
Case Studies · Trade Scenarios

Fifteen documented scenarios. Every rule explained.

Illustrative NVDA scenarios showing exactly how the AcuBooth engine scans, scores, and decides, at the individual trade level. See the Real Account Case Study for actual account-level results.

AcuBooth's account level results come from thousands of individual decisions like the nine full walkthroughs below. These are real documented system behavior using NVDA as the illustrative underlying at a $180 reference price. Every filter, threshold, and rule reflects how the software actually processes user configured parameters.

This content is for educational and informational purposes only. All outputs are hypothetical and do not represent personalized investment advice or a guarantee of future performance.

01
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
Shares held (coverage)100
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
Why 9-DTE 190C wins
longSharesCost = $180 × 100 = $18,000
openPrice = $3.20 × 1.02 = $3.25
ROI (14d) = $3.25 / $180 ≈ 1.8%
Delta fitness: 0.21 ≤ 0.22 PE cap → PASS
185C: heavier EDM-Up penalty, near ceiling
16-DTE 190C: lower annualized return
9-DTE 190C: best balance → SELECTED
Option chain, sequential filter results
Expiry / StrikeDeltaStatus
9-DTE 185C~0.28Penalized, borders PE cap
16-DTE 190C~0.24Lower score, longer path risk
9-DTE 190C ★~0.21Highest alignment, selected
Far OTM (both expiries)<0.05Dropped, trivial premium
Deep ITM (165–170)0.70–0.80Dropped, above PE cap
9-DTE 200C~0.12Dropped, spread ceiling
Rule evaluation, opening gates
Gate 1Delta Cap (PE Mode)Pass
Gate 2Earnings WindowPass
Gate 3Bid/Ask & LiquidityPass
Gate 4Coverage & CapacityPass
System output
SELL_TO_OPEN 1 NVDA 190C @ $3.25 LIMIT
Highest alignment across all surviving candidates. All opening gates pass.
No-trade counterfactual

If implied volatility had collapsed and the 190C mark dropped to $0.75: ROI ≈ 0.42%, fails the minimum return floor. No chain clears the viability floor, so the system outputs “no viable chains.” No order generated, long shares retained uncapped.

02
TB-CS-008 · Defensive Roll

ATR proximity trigger

Opened 14-DTE 185C at $2.50 · Trigger: NVDA at $184, within 1 ATR of strike · Mode: Preserve Equities
System inputs at trigger
Underlying price$184.00
Short call strike$185.00
21-day ATR$6.00
strikeDistanceInATR0.17
Roll trigger threshold1.0 ATR
185C mid-price$4.80
Original premium (Day 0)$2.50
Unrealized stock gain+$1,400
ATR proximity formula
strikeDistanceInATR = ($185 − $184) / $6
= $1.00 / $6.00 = 0.17
Threshold: strikeDistanceInATR < 1.0
0.17 < 1.0 → ROLL TRIGGERED
At 1 ATR move, NVDA could reach $190,
well through the $185 strike.
Before
$185 strike
0.17 ATR · high risk
After
$195 strike
1.83 ATR · low risk
Rule evaluation
Rule 1ATR Strike ProximityTriggers Roll
Rule 2PE Mode Strike SelectionPass
Rule 3Cumulative Credit PositivePass
Rule 4New Strike Further OTMPass
System decision
Roll: Buy to Close 185C / Sell to Open 195C
Strike +$10, DTE +14 days, cumulative premium +$2.10, shares untouched.
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 instead produced a $10 higher strike, 14 more days, and +$2.10 cumulative premium with zero shares assigned.

03
TB-CS-006 · Early Close

Premium capture threshold triggered

Opened 30-DTE 195C at $3.50 · Day +10: NVDA at $188, 195C at $0.90 · Capture: 74%
Day 0, opening
Underlying price$180.00
Strike sold195C (30-DTE)
Credit received$3.50/share
Opening gatesAll passed
Day +10, evaluation snapshot
Underlying price$188.00
195C current mark$0.90
Captured dollars$2.60
Capture %74%
Remaining annualized yield≈ 9%
Threshold evaluation
capturePercent = ($3.50−$0.90)/$3.50 = 74%
Configured capture trigger: ≥ 70%
74% ≥ 70% → CAPTURE TRIGGER MET
remaining yield = ($0.90/$180)×(365/20)×100 ≈ 9%
Configured redeployment threshold: ≥ 12–15%
9% < 12% → YIELD TOO LOW, CLOSE NOW
Rule evaluation
Rule 1Capture TriggerMet
Rule 2Redeployment ThresholdFailed
Rule 3Replacement Call CheckNo Candidate
Rule 4Roll vs Pure ClosePure Close
System output
BUY_TO_CLOSE 1 NVDA 195C @ $0.90 LIMIT
Realized P&L: +$260. 100 shares retained, fully uncapped.
Counterfactual, if held to expiry

Additional theta of about +$90 was available, but NVDA reaching $195 would trigger assignment and forfeit further upside on a $188 stock. The system calculates that +$90 of remaining theta is not worth that risk, so early close is preferred.

04
Opening · Two Modes Compared

Same chain, two different picks depending on one setting

Underlying: NVDA · Reference price $180.00 · 200 shares · 14-DTE chain
14-DTE chain, four strikes scanned
185CDelta 0.38 · $4.60
190CDelta 0.32 · $3.20
195CDelta 0.26 · $2.20
200CDelta 0.21 · $1.60
Mode settings compared
Preserve Equities delta cap≈ 0.22
Premium Optimization delta cap≈ 0.35
Preserve Equities: only 200C (0.21) clears the 0.22 cap
Premium Optimization: 190C (0.32) scores highest within its wider cap
Limit price = mark × 1.02, tick-rounded
Rule evaluation
Gate 1Delta Cap (per mode)Pass
Gate 2Coverage & CapacityPass
Gate 3Bid/Ask & LiquidityPass
Preserve Equities output
SELL_TO_OPEN 1 NVDA 200C @ $1.60
Furthest OTM strike that still clears the tighter delta cap.
Premium Optimization output
SELL_TO_OPEN 1 NVDA 190C @ $3.25 LIMIT
Highest-scoring strike within the wider delta cap for this mode.
Why the same chain produces two different orders

The mode setting does not just influence scoring, it constrains which strikes are even eligible. Under Preserve Equities, the 190C the other mode selected would have failed the delta cap outright, regardless of its score.

05
Opening · Discipline

When the order simply does not fill

Underlying: NVDA · 195C, ≈14-DTE · Mark $2.10 · Limit band $2.05–$2.15
Order construction
Mark at order placement$2.10
Limit band$2.05 – $2.15
Market behavior after placementDrifts away from band
Order rests within the configured band
Underlying moves such that the fair-value mark drifts outside $2.05–$2.15
No re-quote to market → ORDER STAYS UNFILLED
Rule evaluation
Rule 1Limit-Only ConstructionEnforced
Rule 2Market Order ConversionNever
Rule 3Re-quote Within Next CycleEvaluated Next Scan
System output
NO FILL, ORDER RESTS
The engine either re-quotes within bounds on the next scan or lets the order expire unfilled. It does not chase.
Counterfactual, if the engine converted to a market order

Guaranteeing a fill by crossing to a market order could execute meaningfully below the engine's own pricing model, worse than no trade at all. Discipline on the entry side matters as much as discipline on the exit side.

06
Discipline · Low Volatility

Every strike fails the return floor

Underlying: NVDA · IV ≈ 22%, below historical average · 7-DTE chain
Chain scanned, 7-DTE
180 ATM$0.90
185 OTM$0.35
190 OTM$0.20
Return check on the best candidate
185C: $35 credit / $18,000 = 0.19% over 7 days
≈ 9.9% annualized, unadjusted for risk
Configured minimum return floor not met after risk adjustment
Rule evaluation
Gate 1Minimum Net CreditFail, all strikes
Gate 2Risk-Adjusted ROI FloorFail, all strikes
System output
NO VIABLE CHAINS
Output is identical under both Preserve Equities and Premium Optimization modes. No order generated, shares held uncapped.
Counterfactual, if a trade were forced

Writing the 185C anyway would lock in a below-floor return just to generate activity, exactly the outcome the return floor exists to prevent. The engine is designed to do nothing rather than accept a bad trade.

07
Expiration

Premium collected, no assignment, shares intact

Sold 190C for $3.00 credit · NVDA closes at $182 at expiration
Day 0, opening
Strike sold190C
Credit received$3.00/share ($300)
Expiration day
Underlying price$182.00
Strike$190.00
In or out of the moneyOut of the money
Rule evaluation
Rule 1Expiration, Underlying vs. StrikeBelow strike
Rule 2Assignment TriggerNot triggered
System output
Option expires worthless
Full $300 premium retained. 100 shares remain in the account, plus a $200 unrealized stock gain (cost basis $180 to $182).
Counterfactual, if NVDA had closed above $190

Shares would have been called away at the $190 strike instead of retaining both the premium and the stock position, the outcome this scenario avoided by expiring out of the money.

08
Expiration

Shares called away, but the total is still a gain

Cost basis $170/share · Sold 30-DTE 190C at $3.50 · NVDA closes at $195
Day 0, opening
Cost basis$170.00/share
Strike sold190C (30-DTE)
Credit received$3.50/share ($350)
Delta at open≈ 0.30
Expiration day
Underlying price$195.00
In or out of the moneyIn the money
Rule evaluation
Rule 1Expiration, Underlying vs. StrikeAbove strike
Rule 2Assignment TriggerTriggered
System output
Shares assigned at $190 strike
Stock gain ($190−$170)×100 = $2,000, plus $350 premium = $2,350 total realized. Effective exit price $193.50/share.
Counterfactual, no covered call written

Holding the shares uncapped to $195 would produce a $2,500 gain, $150 more than the covered call outcome. That $150 is the cost of the capped upside, weighed against the $350 premium already collected regardless of where NVDA closed.

09
Mode Comparison

Same stock, same day, two different books

Two identical 100-share NVDA portfolios · one setting different · NVDA rallies from $180 toward $195–$200
Portfolio A, Preserve Equities
Strike aligned to195C
Days to expiration≈ 10
Delta≈ 0.20
Distance from underlying≈ 8% OTM
Behavior as NVDA rallies
Rolls earlier, further out
Prioritizes keeping the position uncapped over maximizing premium collected.
Portfolio B, Premium Optimization
Strike aligned to190C
Days to expiration≈ 7
Delta≈ 0.27–0.30
Distance from underlying≈ 5.5% OTM
Behavior as NVDA rallies
Collects more premium, rolls or assigns sooner
Prioritizes premium income, accepting a higher chance of assignment as the price approaches the strike.
Same underlying, same day, same starting position. The only difference is one configuration setting, and it alone explains why one book rolls earlier and the other collects more premium and assigns sooner.
More documented scenarios

The nine above are a sample. The engine handles dozens of these.

AcuBooth maintains a library of documented trade mechanics beyond the nine full walkthroughs above, covering openings, discipline, profit capture, rolling logic, expiration, and mode comparisons. All use NVDA at a $180 reference price as the running illustrative example. A representative sample:

Discipline

When the system finds no viable candidate

If every scanned strike fails the credit floor or delta cap, the engine outputs "no viable chains" rather than forcing a marginal trade to fill a quota.

Discipline

Earnings avoidance filter

Expirations that would settle inside an earnings window are dropped from consideration before any scoring happens, regardless of how attractive the premium looks.

Profit Capture

Stop-limit closing order construction

A NVDA 205C close is built as a stop at $0.73 with a limit at $0.92, filling at $0.75, a concrete example of how the engine prices its own exit orders rather than using a single market order.

Rolling

Term-structure aligned roll

A 190C to 205C roll evaluated against the options term structure, accounting for implied volatility contango rather than premium alone.

Expiration

Early assignment, dividend arbitrage

A $1.20 dividend against $1.10 of extrinsic value creates an early assignment scenario the engine accounts for explicitly, rather than treating all assignment as expiration-only.

Scale

Large position, 3,000 shares

A 30-contract tranche across a single 3,000 share position, each contract still evaluated and priced individually rather than as one block order.

Why this level of detail matters

Most overlay providers describe strategy. Few show the rule.

Competing overlay and covered call programs typically describe their approach in general terms, such as systematic option selling or volatility risk premium capture, without publishing the actual decision logic. AcuBooth publishes the threshold, the formula, and the rule evaluation for every scenario above. An advisor should be able to explain to a compliance reviewer exactly why a trade happened, not just that it happened.

Get started

Want to see this on your own positions?

We will walk through the dashboard and the execution log on a real account, then map out what enrolling would look like for your firm.

Talk to our team