Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 06-07-2021, 07:18 AM   #21
MichaelB's Avatar
Join Date: Jan 2008
Location: Chicagoland again!
Posts: 34,859
Late, but this thread was moved to the Market Strategy forum where it is a better fit.
MichaelB is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-07-2021, 07:32 AM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
MRG's Avatar
Join Date: Apr 2013
Posts: 10,006
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.
MRG is online now   Reply With Quote
Old 06-09-2021, 05:42 PM   #23
Dryer sheet aficionado
Join Date: Apr 2021
Location: Sherman Oaks
Posts: 31
Why not use QYLD,XYLD or RYLD?
jr6035 is offline   Reply With Quote
Old 06-10-2021, 09:44 AM   #24
Dryer sheet wannabe
Join Date: Jan 2011
Posts: 13
Found an interesting article on these covered call ETFs ,, 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...
Bossman is offline   Reply With Quote

alternative investments, digital currencies, gold

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Poor alternative investment idea - Viaticals Easypick Other topics 3 02-13-2012 06:21 AM
Frugal-yet-fun vacation ideas: need ideas from vagabonds OKLibrarian Other topics 23 04-12-2007 08:16 AM
Alternative investment: Private mortgage loans calmloki FIRE and Money 31 03-19-2007 10:03 AM
...but were afraid to ask.. ladelfina Other topics 5 08-11-2006 11:32 PM

» Quick Links

All times are GMT -6. The time now is 07:02 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.