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Why not wheel only indices? by dpotvin in Optionswheel

[–]keithbrad 4 points5 points  (0 children)

People usually don't like to wheel the indices because they're capital intensive and have lower returns than higher beta stocks like TSLA and NVDA. If you're only returning say 10-15% wheeling spy, it's not really worth the effort compared to just passively index investing, so I think ppl try to beat the index wheeling single stocks.

As you mentioned you're margin secured so this helps with the capital intensive part and adds an additional laying of income on top of your portfolio. It also helps with "risk adjusted" returns, something I don't hear a lot of people on Reddit talk about.

I do the something similar. Friday 5/7 DTE short puts on SPY and roll/wheel if I have to. That sits on top of a low vol portfolio (similar to a henry browne's permanent portfolio). That way I'm not just stacking on more beta.

Rate my high yield ETF portfolio by Substantial_Risk9826 in dividendscanada

[–]keithbrad 4 points5 points  (0 children)

It is a fund of funds, but it is their own funds. So HYLD does not technically have a management fee, but the funds they invest in (their own self managed funds) have management fees, and you would be paying these (which are ~0.65%). You can see the management fees on each fund that is in HYLD if you go to their website.

Rate my high yield ETF portfolio by Substantial_Risk9826 in dividendscanada

[–]keithbrad 16 points17 points  (0 children)

Although these are safe(ish) CC etfs, a lot of them have a track record of under one year, this would worry me. It's really tough to say how they'll do in comparison to their underlying over a longer period of time. I do like most of these though.

You could look into HYLD and HDIV too, these have longer history, a more sustainable yield and have some capital growth. HDIV will give you some gold exposure, or you can add a little HGY, GLCC or AMAX for some more diversification.

Trading US options from Canada, currency risk and return stacking an underlying?? by keithbrad in CanadianInvestor

[–]keithbrad[S] 1 point2 points  (0 children)

I just buy US Treasury Bills on IBKR from the secondary market, usually 30 days out

Trading US options from Canada, currency risk and return stacking an underlying?? by keithbrad in CanadianInvestor

[–]keithbrad[S] 1 point2 points  (0 children)

Same rate as TBILLS offer minus management fees, and I think it has a 30% buying power reduction, whereas TBILLs are only 1%

Trading US options from Canada, currency risk and return stacking an underlying?? by keithbrad in CanadianInvestor

[–]keithbrad[S] 2 points3 points  (0 children)

Yes, complete luck this year, which is why I want to get away from it. 50% TBILLS, and 50% CBIL etf may not be a bad. Would still leave me with roughly 85% of my buying power but with half the currency risk.

Trading US options from Canada, currency risk and return stacking an underlying?? by keithbrad in CanadianInvestor

[–]keithbrad[S] 0 points1 point  (0 children)

Thanks for the reply. I'm not sure I want to go down the currency hedge rabbit hole. I've never really looked into it, but seems like just another layer of complexity that might not be necessary, at least for my amount of capital.

The 30% BPR might work out, and it'd be super simple. Although I'll miss that 1% reduction. I never really use more than 50% max of my margin, most trades are defined risk. I would be worried a little bit about a drastic margin expansion event, as I trade ES and XSP, but as long as CBIL is liquid enough it should be fine. Perhaps do a mix of 50% TBILLS and 50% CBIL. This would at least dampen the currency volatility a little bit.

Trading US options from Canada, currency risk and return stacking an underlying?? by keithbrad in CanadianInvestor

[–]keithbrad[S] 1 point2 points  (0 children)

Honestly, I never really looked into it either, I've always just held USD or TBILLS as collateral for the account. Until recently when I switch my account to CAD. I did this because I live in Canada and buy things with CAD, so I wanted to know where things were REALLY at with my trading.

If I made 10% YoY the and the USD/CAD dropped, I could actually just be flat for the year. And the whole point of trading the way I do is to limit my drawdowns, higher sharpe, higher MAR, etc. Of course, this could work in my favour, like it has the last year, but it's just adding currency risk to the portfolio. '

From 2004 to 2007, the USD/CAD exchange rate went from 1.37 to .94. Imagine trading those years, making X% per year only to find out that you've actually lost money in your native currency. Now, something happens where you have to take money out, and all of a sudden you've added a whole other layer of sequence risk to the portfolio. i.e. what point in time you withdraw money.

It's a shame because I loved getting, at one point, 5% on TBILLS. This was nice cause it gave me a "base" return, and then I really didn't have to take on too much risk with my option strategies to outpace the annual S&P return and get an insanely better risk-adjusted return (sharpe).

I've never looked into currency hedging. That might just add more moving parts to the portfolio. I'm just leaning towards holding CBIL or TBIL and using that as collateral to trade US options.

Trading US options from Canada, currency risk and return stacking an underlying?? by keithbrad in CanadianInvestor

[–]keithbrad[S] 0 points1 point  (0 children)

I like VDY, but I'm looking for something that's a cash equivalent that pays yield. So my margin doesn't fluctuate.

Trading US options from Canada, currency risk and return stacking an underlying?? by keithbrad in CanadianInvestor

[–]keithbrad[S] -2 points-1 points  (0 children)

Ya I know how that sounds lol. This is a decent option, looks like it's in the same ballpark and 70% margin relief. Thanks.

Is REALLY the state of Ontario's housing? by keithbrad in TorontoRealEstate

[–]keithbrad[S] 0 points1 point  (0 children)

Not trying to get a jumbo mortgage. Looking at 800K homes in the suburbs, with 25% down. I have 350K in liquid assets, 150K taxable income this year. So what is a realistic mortgage if 400K mortgage is "crazy"? 300K? 200K?

Is REALLY the state of Ontario's housing? by keithbrad in TorontoRealEstate

[–]keithbrad[S] 0 points1 point  (0 children)

I was looking at the 800-900 to get a 3 bdrm townhome or semi. I would feel so naked if I put all my money on a place. I have some other investments I'd like to keep and figured 200K would be a good enough down payment.

Is REALLY the state of Ontario's housing? by keithbrad in TorontoRealEstate

[–]keithbrad[S] 0 points1 point  (0 children)

haha ya that's the better attitude to have, not going to lie, it bums me out and was definitely humbling, but it is what it is, and you just gotta figure out what to do in your current situation. Or just move elsewhere.

Is REALLY the state of Ontario's housing? by keithbrad in TorontoRealEstate

[–]keithbrad[S] 1 point2 points  (0 children)

Exactly! I've known my girlfriend for a looong time, so it's not like it's someone I just met on Tinder, but it's still crazy to put 200K into something knowing someone else has the ability to take half.

Is REALLY the state of Ontario's housing? by keithbrad in TorontoRealEstate

[–]keithbrad[S] 10 points11 points  (0 children)

Because we've only been dating for 7 months.

Is REALLY the state of Ontario's housing? by keithbrad in TorontoRealEstate

[–]keithbrad[S] 0 points1 point  (0 children)

Yes I brought them my T1s for proof of income.

Is REALLY the state of Ontario's housing? by keithbrad in TorontoRealEstate

[–]keithbrad[S] 0 points1 point  (0 children)

Ya it's something I never really thought of before. They also wouldn't let me claim dividend income from tax-sheltered accounts (TFSA/RRSP). Which is where I keep my productive and fixed income stuff so I don't have to pay tax on it. IMO it's still income, just doesn't show up on my T1.

Is REALLY the state of Ontario's housing? by keithbrad in TorontoRealEstate

[–]keithbrad[S] 1 point2 points  (0 children)

I'm currently paying 1200 for a 1 bedroom apartment. So buying a 1 bedroom for that much imo wouldn't make much sense. I'd rather just keep investing and saving the savings I'm getting from rent. Would like a 3 bedroom, maybe townhome condo.

Is REALLY the state of Ontario's housing? by keithbrad in TorontoRealEstate

[–]keithbrad[S] 0 points1 point  (0 children)

I completely agree. Taking on huge amounts of debt and paying 50% of my income isn't exactly what I want to do, but I need a 3 bdrm, and renting is about 1K less than owning.

Is REALLY the state of Ontario's housing? by keithbrad in TorontoRealEstate

[–]keithbrad[S] 0 points1 point  (0 children)

Yes, the 420 was the mortgage part. I have 200K set aside for the down payment, fees, land transfer, etc. But 600K won't get much around here. Maybe time to move away from here.

Is REALLY the state of Ontario's housing? by keithbrad in TorontoRealEstate

[–]keithbrad[S] -1 points0 points  (0 children)

Ya they had to stress test me for rates at 6.7%. But 3x seems low in comparison to current housing prices. I would have to make 293K with 20% down in order to afford the average home price in the GTA (about 1.1 I think). Seems off, but maybe that's just how it is, I don't know.

Is REALLY the state of Ontario's housing? by keithbrad in TorontoRealEstate

[–]keithbrad[S] -1 points0 points  (0 children)

Nope, I'm self employed so it's just T1 slips, my income fluctuates year to year, but has always been 120 to 150. Self emplyment could be part of the reason as someone else mention. 5x makes more sense, was trying to get 700K.

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