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Anyone know what other fishbowls are like?
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I mean, it depends what your objectives are. Income? Speculation?
There are ways to take calculated upside and downside risks with options. Understand the different types of spread trades available to you and learn how and when to deploy them.
Honestly, investopedia is probably the best source to start learning and getting a basic understanding of potential plays you can make.
here’s my strategy: mostly stock allocation, but ~10% cash on hand as fun money to play options trading (LEAPs only). when i make profit, invest most of it to grow current stock positions. rinse & repeat. i play LEAPs because less volatile so i can exit if needed without losing my shirt (also job restrictions). i also sell covered calls against underlying that i own
Thanks JPM!
Sell strangles and sell volatility to collect premium before earnings.
I need to brush up! The last time I studied strangles was when studying for the series 7 many moons ago
Jade lizard 🦎
Not familiar with the term but I’ll definitely look into it, TYVM!
I use the button hook with a rabbit hole safety net
Selling covered calls and selling puts of stocks I actually don’t mind holding if they go down. When they come back up I can sell the calls again. Statistically that how option traders who are the most successful trade. If I have a stock like and it will likely get assigned on a covered call I sell a put so I can have enough shares to assign the more expensive lot and still have shares. I also roll my calls and puts when I need to. I have done really well with that. I never buy a call or a put because they expire worthless if they move against the strategy unexpectedly or last minute.
I buy two week calls on REITs that are going down. You see a REIT that consistently hovers between $5-6.50 and it hits $4.80, buy the $5 strike price for like $.10 and do it a bunch of times. They are small gains, but they are a cheap way to get your feet wet.
Interesting! Thank you
Just to note if you have ira then you can’t have back door ira.
All a back door Ira is is a traditional/pretax with an after tax contribution (with or without other balances that were deductible) that you then convert to a Roth because your income was too high. Albeit the prorata on the deduction and taxability but still. A regular tax deferred ira is the means by which you make the back door conversion usually.
With the market volatility in recent times, made some money using strangles and straddles on SPY. Though it was <1 % of my total portfolio. Covered calls is something else I have used every now and then to earn money on my long term holdings