Safest way to make 1% per month

[tonyf]

I was challenged last evening in a pub (without face mask!) on what would be the "safest approach" to make 1% per month over the next 10 years. Not more, just 1%.

That's about 9 to 10% net of inflation per year or about 1.5x very long term US equity index return.

I was not able to answer on the spot but promised the dude to raise the question here.

 

[traider]

If it's safe to make 1%, it's safe to lever up 4 to 10x to make even more unless the strategy is super capacity constrained.

 

[tonyf]

If it's safe to make 1%, it's safe to lever up 4 to 10x to make even more unless the strategy is super capacity constrained.

note the use of the word "safest" and not "safe" - we are not chasing an 1-off arb. opportunity here.

 

[David's faith]

Buy an etf that goes for a long term goal like water supply or invest in a heavily diversed company such as amazon, unilever, P&C. That is as safe as it get's. Investing is about risk/reward, all the good RR-ratios are already sold out, leaving you with an inversed lottery - the better you diversify the less risk you own.

 

[cesfx]

If the SP500 is not enough, maybe a collar or a delta neutral strategy on a high dividend stock?

 

[tonyf]

If the SP500 is not enough, maybe a collar or a delta neutral strategy on a high dividend stock?

what do you have in mind?

 

[cesfx]

I don't really trade that far away with options, but last year I was looking at a tight 1yr collar close to ATM on XOM, slightly long delta as xom was at a correction. It showed on paper limited loss and a net % (dividend - cost).

Also any ETF correlated to SP could do well, a very small leverage should average a 1% month avg based on historic performance.

Just ideas as I don't trade this way.

 

[Tarzan]

dont buy big gap ups. Dont buy the open, wait a few
minutes. dont buy after hours. dont chase..
Always have a game plan- what stocks are you buying and why.. What price area are you selling..

 

[tonyf]

dont buy big gap ups. Dont buy the open, wait a few
minutes. dont buy after hours. dont chase..
Always have a game plan- what stocks are you buying and why.. What price area are you selling..

and how do you make 1%?

 

[Global OptionsTrades]

There will be better ways, but stock in O or similar paying c.6% yield, with covered calls sold to raise c.1% per month, with some of the excess proceeds used to buy protective puts could get close.