Yeah, no fair comparison. I know. But catchy tittle. 
Here is the thing. I would like to invest capital in SCHD but it is hard for me to commit capital when the risk/reward is low for my trading habits. I am considering SCHD because I am trying to change that now that I am facing ER.
I own TQQQ, SPY and TFDXX. I am aware of the higher expense ratio, leverage and decay with TQQQ. I sell calls and puts in TQQQ and SPY to profit from premium. It's usually weeklies or a couple of weeks out and sometimes 0DTE's.
I use the premium to earn interest/dividend by buying TFDXX where I park the money temporarily until I need to deploy it to sell any cash secured puts I may make. Last week I sold puts on SCHD that I purchased back at a profit before the ex-div for this month. I made a little more than what I would have received in dividends. I was looking about doing a Buy-Write today to own the stock, get a little premium and capture the dividends. However, the call premiums are non-existing. Even when looking at options 1-3 months out.
I understand buying SCHD is a long-term strategy with advantage of dividend payouts and some growth. I was thinking of switching TFDXX for SCHD but if I need to deploy cash for options trading I would have to sell SCHD.
What are others here doing for options trading income? I would like to hear more ideas.
Here is the thing. I would like to invest capital in SCHD but it is hard for me to commit capital when the risk/reward is low for my trading habits. I am considering SCHD because I am trying to change that now that I am facing ER.
I own TQQQ, SPY and TFDXX. I am aware of the higher expense ratio, leverage and decay with TQQQ. I sell calls and puts in TQQQ and SPY to profit from premium. It's usually weeklies or a couple of weeks out and sometimes 0DTE's.
I use the premium to earn interest/dividend by buying TFDXX where I park the money temporarily until I need to deploy it to sell any cash secured puts I may make. Last week I sold puts on SCHD that I purchased back at a profit before the ex-div for this month. I made a little more than what I would have received in dividends. I was looking about doing a Buy-Write today to own the stock, get a little premium and capture the dividends. However, the call premiums are non-existing. Even when looking at options 1-3 months out.
I understand buying SCHD is a long-term strategy with advantage of dividend payouts and some growth. I was thinking of switching TFDXX for SCHD but if I need to deploy cash for options trading I would have to sell SCHD.
What are others here doing for options trading income? I would like to hear more ideas.
