Any ETF with S&P short-put write strategy?

[Q.E.D.]

You're looking for an ETF that shorts SPX calls. Short spot and short puts = short call. It's just the synthetic (arbitrage). I don't think any exist and it would not draw much interest. Generally funds like to structure "long only" or capped structures (no unlimited risk).

It's not feasible as the fund would have to devote a small % of assets to the strategy to allow for variation margin. I can't imagine any listed fund would be allowed to do so.

No ETF that shorts calls, but one that shorts puts. That it is not in fashion, argues for having better returns than a standard long stock, short calls.

But again, I could do several put spreads, with small position in any 1-2 month period.

Thanks.

 

[destriero]

Yeah but they aren't leveraging the short puts. In effect they are cash-secured. You cannot cash-secure a short call.

 

[Q.E.D.]

Yeah but they aren't leveraging the short puts. In effect they are cash-secured. You cannot cash-secure a short call.

With current SP at 448.6, one could buy a Sep 15th 465 put for about $1700, and shor a 450 Sep 15th at $700. Need to put-up $1,000 cash. Max loss would be $500, and if SP stays here for 1 month, the profit would be about $500, even after comm / slippage, etc.
Writing / thinking on-fly, watching S&P futures (fortunately short,) but I think above correct.
Even assuming several such repeat trades would be total loss, the return over a year, should be several times current 5% interest on TBills.

 

[newwurldmn]

With current SP at 448.6, one could buy a Sep 15th 465 put for about $1700, and shor a 450 Sep 15th at $700. Need to put-up $1,000 cash. Max loss would be $500, and if SP stays here for 1 month, the profit would be about $500, even after comm / slippage, etc.
Writing / thinking on-fly, watching S&P futures (fortunately short,) but I think above correct.
Even assuming several such repeat trades would be total loss, the return over a year, should be several times current 5% interest on TBills.

what about the pnl on the short shares!

 

[destriero]

With current SP at 448.6, one could buy a Sep 15th 465 put for about $1700, and shor a 450 Sep 15th at $700. Need to put-up $1,000 cash. Max loss would be $500, and if SP stays here for 1 month, the profit would be about $500, even after comm / slippage, etc.
Writing / thinking on-fly, watching S&P futures (fortunately short,) but I think above correct.
Even assuming several such repeat trades would be total loss, the return over a year, should be several times current 5% interest on TBills.

Yeah I can add and subtract as well.

My point has nothing to do with the feasibility of writing put spreads. Shorting calls naked in a fund is a no go. You cannot write a charter that involves unlimited risk. There is no interest in a short call fund.

The idea of shorting calls against a stock position makes sense to the public who are long only. There are no unlimited risk ETFs/MFs.

 

[Q.E.D.]

what about the pnl on the short shares!

Pos is just 1 put spread; no short shares: long 465 put; short 450 put.
I think there is at least one ETF that sells puts, vs cash in TBills. As an individual, I would be too concentrated, such that a huge up move, would be net loss. The put spread limits that.

 

[destriero]

Pos is just 1 put spread; no short shares: long 465 put; short 450 put.
I think there is at least one ETF that sells puts, vs cash in TBills. As an individual, I would be too concentrated, such that a huge up move, would be net loss. The put spread limits that.

Dude, there are buy-write/short put funds. QYLD is one ETF. I don't understand why you're fixated on this. You're not going to find a short call fund. I get it; you think that bc there are short puts there should be short calls (funds). No. Never.

There are no overwrite funds (upside synthetic straddle funds) for the same reason. Unlimited upside risk.

 

[Q.E.D.]

Dude, there are buy-write/short put funds. QYLD is one ETF. I don't understand why you're fixated on this. You're not going to find a short call fund. I get it; you think that bc there are short puts there should be short calls (funds). No. Never.

I am ONLY interested in puts; not in calls. QYLD is a covered call fund. Basically, I was asking if there is a covered put fund / ETF. Apparently there isn't.

 

[Q.E.D.]

You forgot about your short futures/short put sht from earlier? It's a short call.

Puts are calls, Bro. Short stock + call = long put.

Unless I mis-typed, I don't think I ever mentioned going long, nor even short any calls. I'm either looking for fund that is SHORT S&P, vs short puts, or one that only has long/short puts, in same month periodicities.

 

[destriero]

Sorry, if not clear; always problematic writing while trading! My goal is put spread if I do it, but I would assume an ETF would be net short S&P vs selling puts. Spread for myself would limit risk. I assume a well-managed ETF would still have tight control on risks.

No fund is net short S&P. Stop there.

There are no ps-funds. There are buy-write funds. Which are equivalent to short put funds. I get you now. Earlier you mentioned short futures VS short puts... I misread it as short futures AND short puts, which is a short call. My mistake. Apologies.