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Old 06-07-2021, 07:18 AM   #21
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Late, but this thread was moved to the Market Strategy forum where it is a better fit.
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Old 06-07-2021, 07:32 AM   #22
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Quote:
Originally Posted by calmloki View Post
Young nephew is very hyped on selling covered calls, or puts if the market turns. He says he studies on the weekend, sells the covered calls on a Monday, and has the contract end on Friday. Mainly doing Square. Says he is making 2-2.5% per week and expecting 75% or so per year.

My eyes glaze over and I just can't imagine his plan is maintainable. Some on here sell covered calls - are they as safe and profitable as he is claiming? Is this the new market and is my VTI ancient history and due to fail/make no money?
I sell calls on equities I've owned for years, like Apple. I also write cash covered puts on stocks I'd like to own at lower prices. There's risk, mainly you lose huge gains on calls or your put into a bunch of stocks if the market turns. You can make ~2% weekly on volatile stocks if you're writing at the money. I aim for 2% monthly. Can you do this indefinitely? Probably not.

ETA: I sell mine on Friday so I get the time decay over the weekend. If prices don't move you can pick up 10%-15% decay.
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Old 06-09-2021, 05:42 PM   #23
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Why not use QYLD,XYLD or RYLD?
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Old 06-10-2021, 09:44 AM   #24
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Found an interesting article on these covered call ETFs , https://seekingalpha.com/article/442...ey-sustainable, that questioned the sustainability of these type of funds. Putting that aside, I decided to open a small position in QYLD, the largest of the three ETFs within a qualified retirement account, which in essence defers the tax on the dividends.

As of now, my plan to survive the upcoming cataclysmic market correction along with rampant inflation is relying on a 2.5% position in GOLD and a 2% position in QYLD. Still looking to allocate another 4.5-10% of my assets. Thanks for the ideas...
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