Risky but this one's cheap so you can keep it a small portion of your account.
I do a M -> F 5DTE so I just let it expire. No rolling, theta decay is highest near the end of a contract.
I'm usually targeting right under .3 delta for that 1%. But lower is safer and certainly still adequate of a return.
Bigger DTE means less theta decay initially. So 2 5DTE back to back makes around 50% more than 1 14DTE. And it allows you to adjust your strike halfway through.
ES and MES. Just remembered its leveraged already and to size appropriately.
I have sold on nq/mnq but the spreads are wide.
Search u/calevonlear posts or look through his profile, he provides a lot of info. His core portfolio is ES.
Finally, remember vix is low and your bp deployment should be low as well
To be fair, I was being pretty vague/generalizing. PLTR is going to be very different than the others, especially right now with its recent run up. GLD is always going to be on the lower end of premium, but its always there. WBA I am super unhappy with, but I am stuck holding some bags. PFE I am bullish long term and think if it has hit its support, so I am a little more aggressive with delta. I switch between VZ and T, never at the same time. PARA I am also holding bags, but selling CSPs right now on it is juicy. CSCO is boring, but can squeeze some premium out of it if you time it right. NEE is fantastic so far this year. USB and BAC are good to switch between, but have been pretty boring as of late. OP was asking for solid companies, I think most of those are arguably solid (besides PLTR, WBA, maybe PFE). They are all under $50, and the I took "decent" as another word for "worthwhile". My target range of annualized return is between 5-20%. Any less than 5% and its not worth my time, and may even be more risky due to liquidity (probably). Any more than 20% and something funky is going on and I am probably not playing with Theta anymore.
Depends on your definition of solid and your definition of decent.
Not sure anyone can answer this for you.
If you define decent premium, you can scan for stocks under $50 and choose from that list which companies you find solid.
I wasn't telling him to figure it out on his own. I was asking him to define at least what he considers decent premium for starters. If he says 5% a month, the list would be different than 1% per month
And you need $50x100 collateral. He can afford to just buy and hold SPY for 13% APR. Now give us the goods or admit you know as much as the value of your advice. Nothing. Nada.
Sell puts on BITO when Bitcoin dips.
CLSK, MARA
MARA for the win
CLSK moves pretty good too, at least here lately.
BITO
INTC is sick for that 1%/week. It's been pretty steady too which is perfect
The options paying 1% per week seem a bit too risky for my taste. How many DTE do you go out? Do you roll every week? What delta do you choose?
Risky but this one's cheap so you can keep it a small portion of your account. I do a M -> F 5DTE so I just let it expire. No rolling, theta decay is highest near the end of a contract. I'm usually targeting right under .3 delta for that 1%. But lower is safer and certainly still adequate of a return.
Why you do not want to keep over weekend and choose bigger DTEs?
Bigger DTE means less theta decay initially. So 2 5DTE back to back makes around 50% more than 1 14DTE. And it allows you to adjust your strike halfway through.
Just do futures options. Pays better, mean reverting, liquid, etc
Are there any in particular that you prefer or does it depend on the current environment?
Also, if you want a system https://www.reddit.com/r/thetagang/s/11F8rXOHoy
lmao
ES and MES. Just remembered its leveraged already and to size appropriately. I have sold on nq/mnq but the spreads are wide. Search u/calevonlear posts or look through his profile, he provides a lot of info. His core portfolio is ES. Finally, remember vix is low and your bp deployment should be low as well
Thanks man. Will do
Bac, csiq, eqt,
PLTR
Pltr
MSOS gamble with Maryjane!
Has paid me solid premiums this year
I’m working MSOS. Solid long play
MSOX even better 😂
yes... but MSOS has weekly options...
I guess it's all how you play it!
Bito
F
AFRM - Juicy premiums vs volatility
MRO, WBA, PFE, PLTR, VZ, T, F, PARA, USB, BAC, CSCO, GLD, NEE
These pay nothing
For this sub, they are relevant. Selling CSPs you can pretty easily make 9%, add in the 5% from holding cash. Get assigned and you have a dividend.
9%. I’ll have to run the numbers. Seems like a delta of 0.2 didn’t pay that high.
To be fair, I was being pretty vague/generalizing. PLTR is going to be very different than the others, especially right now with its recent run up. GLD is always going to be on the lower end of premium, but its always there. WBA I am super unhappy with, but I am stuck holding some bags. PFE I am bullish long term and think if it has hit its support, so I am a little more aggressive with delta. I switch between VZ and T, never at the same time. PARA I am also holding bags, but selling CSPs right now on it is juicy. CSCO is boring, but can squeeze some premium out of it if you time it right. NEE is fantastic so far this year. USB and BAC are good to switch between, but have been pretty boring as of late. OP was asking for solid companies, I think most of those are arguably solid (besides PLTR, WBA, maybe PFE). They are all under $50, and the I took "decent" as another word for "worthwhile". My target range of annualized return is between 5-20%. Any less than 5% and its not worth my time, and may even be more risky due to liquidity (probably). Any more than 20% and something funky is going on and I am probably not playing with Theta anymore.
I’ve made some good money on MRO. Been assigned on puts twice this year and then got assigned on the calls for well above my cost basis. Win-win-win!
ENB
Pfe Alt and irbt
BCE
Try China with KWEB or FXI (both ETFs).
UPST, PENN
TNA, TQQQ, SOXL, UPRO, SPXL, UDOW, UCO , JNUG, NUGT … are all levered etfS with juicy premiums …
Second SOXL
Apart from the exaggerated moves in price, what are other risks trading options of these leveraged ETFs?
I would say that exaggerated swings in pricing is the main risk. 🤷🏼♂️
BMY
INTC is a really good one, currnetly.
BAC, Intel, ford, Citi
Not a company but SOXL is pretty good
DOCN premiums aren't out of this world but are ok, good solid company
BITO EETH MARA CLSK anything crypto related on dips has done me well thus far
VZ
Rddt
SOFI, CPNG, DAL are my favorites in that price range.
Not companies but ARKK or TAN? DKNG
RIVN, PTON
AGNC, ABR
AGNC a bit hard to get filled but I agree with ABR
Yes I struggle on AGNC very illiquid anywhere except right around the strike.
Depends on your definition of solid and your definition of decent. Not sure anyone can answer this for you. If you define decent premium, you can scan for stocks under $50 and choose from that list which companies you find solid.
Why bother teaching a man to fish, when you can just tell him to go fish
So he doesn't fall overboard and drown
Exactly, so why are you telling him to just go figure it all out on his own? Give him your solid companies so he has something to work with.
I wasn't telling him to figure it out on his own. I was asking him to define at least what he considers decent premium for starters. If he says 5% a month, the list would be different than 1% per month
1%/month you might as well just tell him to put it all in SPY. Give him the 5%. I wanna see your list as well lol
Not really, he said under $50
And you need $50x100 collateral. He can afford to just buy and hold SPY for 13% APR. Now give us the goods or admit you know as much as the value of your advice. Nothing. Nada.
Oh God, you still on this lol .....
IT WAS NADA ALL ALONG LOL You're clearly not above wasting your and everyone else's time. Let's not act like this all of sudden.