Options Traders: Making High Cash Balances Work for Us
- Thread starter arizonadreamer
- Start date
We dont need to be so worried about making 3-5% APY. usually selling far OTM naked put/calls generated safe returns. but with the current market, the most sureshot bet can turn against us.
I am putting my unused funds to work by selling naked calls/puts in the last week of options expiration as there are too many opportunities present.
Just pick and choose the ones you think are most likely to work for u, deploy your cash and then watch them expire worthless.
if they dont , then, repent,and try again next month!!
I am putting my unused funds to work by selling naked calls/puts in the last week of options expiration as there are too many opportunities present.
Just pick and choose the ones you think are most likely to work for u, deploy your cash and then watch them expire worthless.
if they dont , then, repent,and try again next month!!
Sounds okay.
Do you have any names in mind?
AZD
This is a topic in itself.
My goal is trying to generate reasonable income from the funds that are tied up by maintenance requirements.
3 to 5%+ is much better than < 1%.
AZD
Thanks drcha.
That's quite a yield. It's too bad they don't have options - it would be nice to protect oneself from the recent wild swings.
AZD
Two suggestions (not to put 100% of capital but some):
MARPS
BPT
Oil Reits with lower risks now with current oil prices than last year and great yield. Set and forget..
MARPS
BPT
Oil Reits with lower risks now with current oil prices than last year and great yield. Set and forget..
Optioncoach,
Thanks for sharing those two.
Good to see you are still around and kicking - I remember from another forum (not to be named here
) that you had an entire list of income-generating ETFs. You had your own personal "proprietary" strategy, if you will . . . I hope it has been working out for you.I also remember at the time, interest rates were high enough that it wasn't necessary (for me at least) to venture into ETFs for yield.
Right now, it seems for certain strategies (when our cash is tied up for maintenance) even a small yield of 3 - 5% would be preferable. However, since I already have enough risk with my options positions, I would want to find a relatively high-yielding instrument without the volatility associated with the average stock.
I will keep looking into things - it seems that high-yield ETFs with a collar might be what I'm looking for.
AZD
hi arizonadreamer,
I also keep looking for ways to make undeployed cash work for us.
last OCTOBER , I learnt that even the safest deep ITM covered call , is not exactly safe.
If you say 3-5%. its like 0.35% a month
Now if you look at any options screener for lot of SOLID stellar stocks/ETFs we could easily pick such low hanging fruit. Infact much more. sometimes when we look at it, deploying 10K and getting 50$ after commissions doesnot look too enticing. for 2-3 weeks.. but it works out to 6% APY.
but as you said, if we, already have some major options positions in the same SECTOR , that would not be wise, as we have learnt. what can go wrong , usually does..
RISK Management. RISK Management, RISK Management...
So the very fact that we want 3-5% APY. and not settle for the 1% Money market, does introduce more risk on us.
I also keep looking for ways to make undeployed cash work for us.
last OCTOBER , I learnt that even the safest deep ITM covered call , is not exactly safe.
If you say 3-5%. its like 0.35% a month
Now if you look at any options screener for lot of SOLID stellar stocks/ETFs we could easily pick such low hanging fruit. Infact much more. sometimes when we look at it, deploying 10K and getting 50$ after commissions doesnot look too enticing. for 2-3 weeks.. but it works out to 6% APY.
but as you said, if we, already have some major options positions in the same SECTOR , that would not be wise, as we have learnt. what can go wrong , usually does..
RISK Management. RISK Management, RISK Management...
So the very fact that we want 3-5% APY. and not settle for the 1% Money market, does introduce more risk on us.