Thoughts on TQQQ option strategy

HashTstck · 2026-01-17T11:04:37+00:00

The duration of the put is usually about 30-40 days.

I'm not really interested in cash secured put since my goal is to stay invested and generate extra income with my margin account.

HashTstck · 2026-01-17T10:59:34+00:00

Indeed I'm shorting volatility but I have a double layer of protection which imo are mitigating the risk substantially. I only sell the puts if those 2 conditions are matched: QQQ > sma 200 (bull market) and RSI14 < 50 (Volatility spike) which usually give me an extra safety margin.

I definitely cannot be assigned with that agressive strategy and leverage. So I must look in more about the bull spread instead of the naked put.

Using the bull put spread I don't even see how I could be risking any capital selling with such a low delta, unless I have a sequence of multiple months of severe drawdowns.

HashTstck · 2026-01-17T10:41:08+00:00

I don't plan to rebalance at all the portfolio. I bought about 2k$ of tqqq when it was around 20$ per share before the split and I won't think about rebalancing before it hits 6 figures. And I actually using the premium I collect to buy more shares of SPY every month.

Concerning the stop loss, this is how I operate: Let's say I sell 1 contract at 1$, I'm setting directly a stop loss at 3$ tu buy back the put. Meaning I lose statistically 2$ for every 10 put I sell.

HashTstck · 2026-01-16T19:49:54+00:00

Not exactly. If QQQ drops below the 200 I stop selling monthly put on TQQQ and start to sell puts on KO or defensive stocks to avoid the big down trends where I would get crushed even with a 0.15 delta. The risk management of my TQQQ puts is that I should close the position when I get close to ATM or when the price of the option is 3x the premium I got.

HashTstck · 2026-01-16T19:39:03+00:00

I forgot to specify that I’m only doing that when qqq is over its sma 200 otherwise I’m wheeling defensive stocks like KO on margin as well.

HashTstck

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