SPY Covered Calls - What is a good strategy to use in a Roth IRA when holding SPY?

[iprph90]

https://seekingalpha.com/article/4353418-selling-otm-covered-calls-systematically-30-year-backtest

 

[murray t turtle]

I put your post into AI...Next I should try Des!!

Based on the given text, it appears that the writer is discussing various investment ideas and strategies. They mention specific stock symbols such as UPRO, SPYG, SPY, and QQQ, indicating potential options for investment. The writer acknowledges that there may be some decay or potential drawbacks associated with these ideas but also highlights their potential benefits. They mention the concept of "no free lunch, "suggesting that all investments come with risks and potential trade-offs. Additionally, they mention the possibility of selling money market funds. Overall, the text seems to be a casual discussion about investment ideas and plans.

PS I used one of my longest threads to see what happened. AI, for the most part
said..."except for a few areas, I don't know what this guy is talking about"!!

%%
LOL i hate the term AI;
as if all machine learning is artificial, like some sort of artificial eyes
Good AI points anyway.
IF i had of known UPRO was going to trend mostly/ like it did 2024 , i would have bought some LOL........................................................................................
Some SPXL traders make money\ but I will NEVER again use a time stop only in JAN\again. Learned better than machine on that loss, years ago LOL.
Of course with enough of a profit cushin/ time stops are fine+ may profit better .

 

[Cabin1111]

https://seekingalpha.com/article/4353418-selling-otm-covered-calls-systematically-30-year-backtest

It's a formula (and a good one).

It doesn't take into account the human side of the trading.

Example, buying back a dog (and gleaning a tax loss for April). Also when I see an option getting close to in the money (near expiration), I will buy it back, to prevent large gains (higher taxes).

The old saying comes into play..."It's not what you gain/make, it's what you keep".

 

[getthatintoya]

what happens on a huge rise? do we close whole position or roll? that is the make or break of this strat

You can do either 1) sell shares buy back calls if you think market is going to have a pullback for a better rentry or 2) keep holding shares buy calls back and sell next quarter calls.
Selling weekly calls otm is where gamma is going to hurt you hard on a strong move.
You want to be selling vol not gamma.

 

[v-shape-0DTE]

No reason to ever buy CC in an unstoppable bull market that isn't capable of going down. Nothing to gain.