generating 1000 $ per month on 150 k investment

[atticus]

Quote from Hydroblunt:

I'm guessing it's pretty much REITs and Trusts.

I stated shares, repeatedly. The dispersion comment makes reference to the logic in avoiding ETFs. REITs? Does anyone trade options on REITs?

 

[Hydroblunt]

Quote from atticus:

I stated shares, repeatedly. The dispersion comment makes reference to the logic in avoiding ETFs. REITs? Does anyone trade options on REITs?

REITs and Trusts do have publicly traded shares. You were speaking on dividends and stated to stick to shares. Being that I have held positions in REIT and Oil Trust shares for the high dividends, I would assume that would be the strategy.

 

[atticus]

Quote from Hydroblunt:

REITs and Trusts do have publicly traded shares. You were speaking on dividends and stated to stick to shares. Being that I have held positions in REIT and Oil Trust shares for the high dividends, I would assume that would be the strategy.

Huh? I asked about REIT options. I trade SPYs daily, so I am fairly fluent in the options. My only mention of dividends was that they're of no use in a put-writing strategy.

 

[atticus]

Quote from newguy05:

wow atticus i didnt know you do this stuff as well. Curious, what do you do if the underlying went itm? Do you just take assignment then sell otm covered calls 1 strike out against it or take the loss and close before expiration. thanks

You own it. Yes, I'd convert the position to the natural buy-write going forward. I wouldn't adjust; I would stick to the small gamma/vega hedge. I'd figure you would blow 20% of your monthly premium in the itm bull VIX vert or long index put.

 

[Hydroblunt]

Quote from atticus:

Huh? I asked about REIT options. I trade SPYs daily, so I am fairly fluent in the options. My only mention of dividends was that they're of no use in a put-writing strategy.

I misunderstood you. That's actually a good idea although I do not think it would work well for the OP's scenario.

You should probably run a fund using that strategy.

 

[atticus]

Quote from 1prometheus:

was a guy named Madoff that promised something similar. A "safe" 8% real return with low volatility is not possible, unfortunately. ...But if u do find it please let us know.

I read a Euro-based prospectus in 2006 based-upon the fence/reversal/capfloor strategy. I told my brother it's obviously a scam, as the neutral reversal would be a net-outlay in premium. Matching the market chart to the performance was a joke, an obvious fleecing. He invested anyway. Nowhere in the prospectus was BM mentioned, but you can guess who was running the fund.

 

[Vespasian]

I have a better idea for you.

Take $10k and give it to a real trader and he will make you $30k with just that by the end of the year.

Problem is that most real traders $10k is not enough for them to touch.



I think the dividend route is the best for your situation.

Good luck

 

[atticus]

Quote from Vespasian:

I have a better idea for you.

Take $10k and give it to a real trader and he will make you $30k with just that by the end of the year.

Problem is that most real traders $10k is not enough for them to touch.



I think the dividend route is the best for your situation.

Good luck

The variance to expiration exceeds the dividend payout. Dividend retention is a fallacy. It's a bull mkt strategy.

 

[Eliot Hosewater]

Quote from atticus:

You own it. Yes, I'd convert the position to the natural buy-write going forward. I wouldn't adjust; I would stick to the small gamma/vega hedge. I'd figure you would blow 20% of your monthly premium in the itm bull VIX vert or long index put.

Would or should? So you sell puts on individual stocks and buy protection on a total market meltdown with long index puts? There is a book by Jeffrey Cohen called Put Options that describes such a method. It was published in 2003 so it doesn't mention using VIX (i.e. if the market crashes the VIX goes up, so a bullish vertical or long call would offer some protection).

ETA: And if you do put on the protection, is your 18% net of that cost?

TY.

 

[atticus]

Quote from Eliot Hosewater:

Would or should? So you sell puts on individual stocks and buy protection on a total market meltdown with long index puts? There is a book by Jeffrey Cohen called Put Options that describes such a method. It was published in 2003 so it doesn't mention using VIX (i.e. if the market crashes the VIX goes up, so a bullish vertical or long call would offer some protection).

ETA: And if you do put on the protection, is your 18% net of that cost?

TY.

Would. Net return on small sample (3MM aum) in opm.