How I Used Covered Calls to Turn a Losing ASTS Position Into a Cash-Flowing Wheel

 I started my AST SpaceMobile (ASTS) position on April 20, 2026, buying 100 shares at $79.13 per share, for an initial investment of $7,913.32.

Today, I am deliberately making no new ASTS trade. Using my current quoted price of $58.86, the shares are about $20.27 below my original purchase price, or roughly 25.6% lower.

Looking only at the stock, this would appear to be a straightforward losing position.

But that doesn't tell the full story.

Since buying the shares, I have repeatedly sold covered calls, bought them back, and rolled them as ASTS moved. Based on the completed transactions in my brokerage history that I've reconciled so far, I have collected approximately $1,956 in net option premium.

That changes the economics of the position considerably.

The Starting Point

My original purchase was:

100 ASTS × $79.13 = $7,913

At today's $58.86 price:

100 × $58.86 = $5,886

So the shares themselves are showing an unrealized decline of approximately:

$5,886 − $7,913 = −$2,027

That's the number someone would see if they simply compared my purchase price with today's market price.

But my strategy wasn't simply buy ASTS and wait.

I put those shares to work.

Turning the Shares Into an Income-Producing Position

Almost immediately after buying ASTS, I began selling covered calls against the 100 shares.

The objective wasn't to predict exactly where ASTS would trade next. I wanted to monetize the volatility while continuing to own the shares.

ASTS has been extremely volatile. Recent market data illustrates that clearly: its 52-week range has stretched from roughly $39.50 to $133.86.

That volatility created opportunities to repeatedly sell option premium.

My verified net option income by period is currently:

Period	Net option premium
April	+$357
May	+$992
July	+$76
August	+$397
September	+$134
Total collected	+$1,956

Canceled orders are excluded.

The particularly important point is that these are not $1,956 of outstanding option premiums that could disappear if ASTS moves against me.

These are the net results of the completed transactions we've reconciled.

What $1,956 of Premium Did to My Position

Here's where the wheel becomes interesting.

My original stock cost was approximately:

$7,913

I've generated:

$1,956

from the options.

Economically, that means:

$7,913 − $1,956 = $5,957

Spread across my 100 shares:

$5,957 ÷ 100 = $59.57 per share

So while my brokerage account still recognizes the original stock tax basis separately, I think about the position from a trading-economics perspective as having approximately a:

$59.57 effective economic basis

That distinction matters.

The stock doesn't actually have a $59.57 tax basis merely because I collected option income. I'm using this number as an internal measure of how much net capital remains economically unrecovered after the option income.

Where I Stand at $58.86

Now compare my effective basis with today's price.

Economic basis: $59.57

Current price: $58.86

Difference:

−$0.71 per share

Across 100 shares, that's approximately:

−$71

This is dramatically different from looking only at the stock.

Without options:

Unrealized stock decline ≈ −$2,027

After including the $1,956 of net option income:

Economic position ≈ −$71

In percentage terms, my original $7,913 investment is therefore approximately 0.9% underwater economically, using this method.

So ASTS could fall approximately 25.6% from my purchase price, and the option income has absorbed almost the entire decline.

That is the central result of this wheel so far.

The September Trade Shows the Process

One of the cleanest examples happened this month.

On September 8, I sold:

ASTS $80 Call expiring October 2

Premium received:

+$180

Three days later, on September 11, I bought that call back for:

−$46

Net realized premium:

+$134

I captured roughly 74% of the original premium without waiting until October 2.

More importantly, buying it back removed the $80 obligation.

My 100 ASTS shares are currently not capped by that call.

That's why today I am doing nothing.

Why I'm Not Selling Another Call Today

This is an important part of my wheel strategy.

I don't believe a wheel means that a covered call must always be outstanding.

ASTS is currently around $58.86, substantially below my original $79.13 purchase price and slightly below my calculated $59.57 economic basis.

Selling an aggressive covered call simply because the shares are available could create a new problem.

Suppose I sold a relatively low strike to obtain a large premium. If ASTS suddenly recovered—which this stock has demonstrated it can do—I could find myself fighting to roll the call upward again.

Instead, I've already harvested the previous call.

I collected $180.

I spent $46 to close it.

I kept $134.

And now I have regained the flexibility of owning the shares without a short-call ceiling.

No trade is also a position.

Why ASTS Has Worked for This Approach

The underlying company remains highly event-driven.

AST SpaceMobile reported in August that it had partnerships with more than 60 mobile-network operators covering more than 3 billion subscribers, approximately $1.3 billion of contracted revenue backlog and U.S. government contract awards, and BlueBird satellites 17 through 46 in various stages of production and assembly.

There have also been meaningful operational events during the exact period I've been running this strategy: BlueBird 7 launched in April, BlueBird 8–10 in June, and BlueBirds 11–13 in August.

Those kinds of catalysts can contribute to large stock movements and option volatility.

But that volatility cuts both ways.

ASTS has traded as high as $133.86 over the past year and is now around the high-$50s.

That is exactly why my strategy has not been simply "sell a call and forget about it."

I've actively managed the calls.

The Biggest Lesson From This Wheel

My ASTS experience has changed how I think about covered calls.

The objective isn't necessarily to maximize premium from every individual option.

The objective is to manage the entire position.

I started with approximately:

$7,913 invested

I've generated approximately:

$1,956 net option income

That's equivalent to roughly:

24.7% of my original stock investment

My calculated economic basis has therefore moved from:

$79.13 → approximately $59.57

And with ASTS at $58.86, I'm approximately:

$71 below economic breakeven

rather than roughly $2,027 underwater based solely on the stock.

That is a very different position.

What I Would Not Claim From These Results

There is an important downside to this strategy.

Covered-call income isn't free money.

Every time I sell a call, I'm exchanging some upside participation for immediate cash. Had ASTS exploded upward while one of my calls was deep in the money, I could have been forced to sell the shares or spend substantial money rolling the option.

And the $1,956 collected doesn't protect me indefinitely.

If ASTS falls from $58.86 to $40, for example, the decline in the underlying shares would again overwhelm much of the premium cushion I've created.

The wheel reduces my economic basis; it doesn't remove equity risk.

There is also a second lesson that I think is even more important: premium shouldn't be treated as profit independently of what happens to the underlying stock.

The stock and options have to be evaluated together.

Where the ASTS Wheel Stands Today

Here is my dashboard as of now:

ASTS Wheel	Current position
Shares	100
Original purchase	$79.13
Original investment	$7,913.32
Current stock price	$58.86
Stock value	$5,886
Stock-only P/L	≈ −$2,027
Verified net option premium	+$1,956
Premium / original capital	≈24.7%
Economic basis after premium	≈$59.57/share
Economic P/L at $58.86	≈ −$71
Open covered call	None
Current action	No trade

One bookkeeping caveat remains: our screenshots did not establish whether there were additional June ASTS option transactions. Therefore $1,956 should be treated as the verified minimum lifetime premium until June is confirmed. If there were no June ASTS trades, this becomes the complete April-to-September figure.

For me, the most interesting number isn't $1,956.

It's $79.13 → $59.57.

After almost five months of actively managing one 100-share position, the options have economically absorbed roughly $19.56 per share of my original investment.

And today, with the call closed and ASTS around $58.86, the wheel doesn't require another trade.

Sometimes collecting premium is the strategy.

Sometimes keeping the shares uncovered and waiting for the next favorable setup is the strategy.