By - bone_shadows
If I inherited 300k I would honestly just buy VTSAX and let it do its thing.
A lot of it already is in various mutual funds already, including a total market fund. Im taking 50k out for a defined risk strategy, as mentioned in the post. Im not sure why all of the r/investing r/Bogleheads advice is "Just put it all in VTI and call it a day" but this simple suggestion isnt really needed and you should find you way back there since this is an options sub.
I sell calls on SPY and IWM regularly. They are usually not CC’s though. I used to sell calls on QQQ but ever since the run up last year it has been impossible to make any money. I will do an occasional call ratio on QQQ. I have a couple going now.
Hello a little newbie question, can I know do you sell call while already owning the stock or you actually don’t have the underlying stock?
Buy 1 long call ITM/ATM/OTM and sell 2 further out calls. SPX example:
Thanks for sharing the call ratio spread, I thought when he mentioned ‘I sell calls on SPY’ meant he sell cash secured call or stock secured call?
Yes that’s what I meant, though I do sell call ratio spreads as well.
It’s called a “covered call.” There is no way to secure a short call with cash.
Oh. Alright thanks for sharing. Learnt something new today :) cheers
I sell calls for which I do not own the underlying shares. It’s called a naked call.
Cant do that in an IRA though you have to define risk since it is a cash account
Well I have to do a CC since this isnt a taxable account the risk needs to be defined and shares need to be covered. Im curious on "Impossible to make any money" with the short calls? There is a lot of premium baked into the calls on QQQ and with 30 delta and under it should be possible to sell the calls and buy them back for a while until they eventually get called away? What are your deltas, DTE and when do you initiate this position(of the short call)? (Bullish days, bearish days, neutral). Also which one was more profitable IWM or Q? Iwm has been a complete dog since last year and I can never seem to get my credit spreads to work on it.
I am thinking about wheeling IWM. Any advice? What delta do you sell at usually?
IWM is almost 20% off highs, so if you’re bullish on small caps, it might be a good time to get in. I don’t wheel, I just trade stock and options. Wheeling is bullshit.
I'm very tempted to enter in on a put soon here..I'm more into CC. Is there a certain delta or price delta you target? do you get called often?
Also I was thinking of trying this on sector etfs, namely a high beta one like XLK and then something low risk like staples or materials, for diversification purposes i guess. Reason being to eventually simulate an index over time, adding XLF, XLE and XLC over time, but without just being dedicated to one security since I would be taking distributions with in 10 years (You have to its the rules of an inhereted 401k to IRA). I can take it off in sections based on sector performance.
Only problem is low vol /premium on something like XLB. and XLE can burn you for 6 years although that down side risk can be protected by the short calls somewhat, Any thoughts on this strat? I would be closing 50 percent of the debit. Or at least enough to buy a share or 2 of of the sector etf each option trade
Ive actually started this with pretty good results, been making consistent premium of 300-400 dollars every 21 days or so for each SPY and QQQ. However I just jumped into QQQ just doing CCs right away since I am bullish long term. Im also shorting puts on the 30 delta of XOP and XLF. Obviously XOP has done phenomenal, xlf should do well too over time