So I sold a business a few days ago. I'm flush with cash...I don't know where to put it. Some has gone to CDs, some to the kids, much in stocks (think Boeing and Loews...Covered calls), and some to taxes. Still have much to invest. Taking my time. Want your thoughts on buying Apple (AAPL) under $115. Do a covered call for the Jan 22 at $120. At this time, I could get about $18.15 for it. Just a way to create cash flow. Please feel free to shot holes in this idea...
Buy Apple, do a covered call Jan 22...
- Thread starter Cabin111
- Start date
Invesco QQQ. Set it and forget it. Or a Vanguard NASDAQ mutual fund. Don't be a hero.
How will you exit? Absent any additional macro shocks I think you will definitely see a gain on the vol sooner or later. Selling so close to spot might shorten the lifespan of the trade though. Unless you're equally okay with being short the 20d put synthetic if it rallies for a few months.
Also I'd hesitate to call it cash-flow. Income isn't really being generated. You are swapping upside for a credit, and you're free to lever the trade however much you want, by withdrawing equity. No regular income stream is being produced in the traditional sense.
Also I'd hesitate to call it cash-flow. Income isn't really being generated. You are swapping upside for a credit, and you're free to lever the trade however much you want, by withdrawing equity. No regular income stream is being produced in the traditional sense.
Lots can happen with tech ..... or the markets in that much time.
Looking that far out I'd prefer a 100/140 Call spread (Jan 2022).
Risk $1600 to make $2400.
No premium paid.
Already did it...Great minds think alike!! If QQQ drops 20% I'll add to it...
I'm 65, 2 heart attacks. My wife will be getting 2 hip surgeries in the next year. I DO NOT want to do spreads!! Our accounts may not be touched for months if I die. A bank's trust department will handle our assets, if and when it's time for us to walk away. Responsible kid lives far away...Unwise kid lives local. It is what it is...
Sounds good.
Most brokers will auto sell or exercise any ITM options at expiration so won't risk anything if you don't do anything at expiration
I have a pile of covered calls also. Thinly traded options so don't want to do call spreads either.
Flush with cash? To hell with the kids! 
Still have my Chevy Colorado I bought new in 2005. Read "The Millionaire Next Door"...That's me!! It was on the New York Times best seller list for months. It's over 25 years old...But it still applies.Flush with cash? To hell with the kids!
There are different summaries on the internet about the book. Wiki has a good one. Here is one I grabbed off the net.
https://www.google.com/url?sa=t&rct...e-next-door/&usg=AOvVaw0kJ0BHeaK8najWXU9LX8n7
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Eat plenty of organic fresh fruits and vegetables, especially the green leafy ones.
Stay away from tobacco, booze. red meat (and animal protein in general) and ANY processed "food" (including junk "food").
