Retired, 450k fun money, lets see what happens - SPY Options

Will I be successful and outperform the S&P 500?

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W

Wise Old Man

I've been waiting for this day for a long time. After 40 years work, I threw in the towel to enjoy retirement. I've got a nice 450k saved in my roth 401k that is being rolled into a roth ira to mess around with. I'm okay with direct market exposure as I have more than enough savings and passive income from real estate to pay my bills.

As soon as the funds clear, I'll be running the wheel on SPY. I've never made one of these journals before... hell I've never even traded this strategy before but my goal is to outperform the S&P 500. I'll be selling very short term premium at a specified price hoping for an assignment.

Funds are set to clear next week. More soon to come...
 
I am in the same shoes except I did it at age 62, 2 years ago. I had my funds at Vanguard but their trading platform sucks and I lost a few bucks with covered calls on the July mini-crash. Then I moved to TDAmeritrade and now I am with Schwab and IB, managing our Family Trust. I had my ups and downs, but at this point, I am hedging my portfolio with options and inverse ETFs.
Start small and have a plan, and be ready and prepared to change your plan...
 
Wise Old Man said:
I've been waiting for this day for a long time. After 40 years work, I threw in the towel to enjoy retirement. I've got a nice 450k saved in my roth 401k that is being rolled into a roth ira to mess around with. I'm okay with direct market exposure as I have more than enough savings and passive income from real estate to pay my bills.

As soon as the funds clear, I'll be running the wheel on SPY. I've never made one of these journals before... hell I've never even traded this strategy before but my goal is to outperform the S&P 500. I'll be selling very short term premium at a specified price hoping for an assignment.

Funds are set to clear next week. More soon to come...
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If you are operating the wheel, triple income strategy, then you do not want to be assigned. You want to just collect put premium indefinitely. If you are assigned then you may be offside for years during a bear market as you sell calls to get your money back. The wheel is a bullish strategy.
 
ZBZB said:
If you are operating the wheel, triple income strategy, then you do not want to be assigned. You want to just collect put premium indefinitely. If you are assigned then you may be offside for years during a bear market as you sell calls to get your money back. The wheel is a bullish strategy.
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I am confused; the wheel assumes assignment and instant calling away (weekly options). Are you saying cover the puts before they are exercised? Then it is not the wheel. Otherwise, I see your point. Even in a bear market, stocks can advance to be called away...granted one has to be a decent stock picker.
 
TimtheEnchanter said:
I am confused; the wheel assumes assignment and instant calling away (weekly options). Are you saying cover the puts before they are exercised? Then it is not the wheel. Otherwise, I see your point. Even in a bear market, stocks can advance to be called away...granted one has to be a decent stock picker.
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It is a bullish strategy. Why do you want to be assigned? The market may go down for years.
 
If you are going to be doing SPY options, you might as well doing SPX options. Higher premiums, no pin risk, no assignment risk. Everything cash settlement, what you win/lose is what you get.
 
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