I am interested in selling puts on an index etf for long term investment purposes. I hope to collect the premium, but would be happy to be assigned the shares since i will hold them until i am old.
The other element of this plan is that I will not act all at once - I will sell the puts so that each contract, should i be assigned, would work out to 1/3rd of my total cash balance.
Ideally I would use options on the SPY etf to do this - but since i am starting out with a cash balance that is small - delivery on 1 spy contract will work out to more than 100% of my cash - instead of the 33% that I am aiming for.
Can anyone suggest a good ETF for achieving these goals? Something like SPY but with a lower trading price...
Rydex S&P Equal Weight Almost works - but the options are too illiquid...
thanks for your help!
ben
The other element of this plan is that I will not act all at once - I will sell the puts so that each contract, should i be assigned, would work out to 1/3rd of my total cash balance.
Ideally I would use options on the SPY etf to do this - but since i am starting out with a cash balance that is small - delivery on 1 spy contract will work out to more than 100% of my cash - instead of the 33% that I am aiming for.
Can anyone suggest a good ETF for achieving these goals? Something like SPY but with a lower trading price...
Rydex S&P Equal Weight Almost works - but the options are too illiquid...
thanks for your help!
ben