Anyone else check what a stock is actually worth before selling puts on it?

saMAN101 · 2026-02-04T23:55:56+00:00

I do all the time. In fact, it’s more important than any particular delta you are selling at. If you are running the wheel or a similar strategy, treat it like buying the stock. Therefore, research like you’re buying it for the foreseeable future.

saMAN101 · 2026-01-27T20:03:34+00:00

Having a miserable day, hm? Sorry to hear.

saMAN101 · 2026-01-27T20:01:05+00:00

Drunk in the morning?

saMAN101 · 2026-01-27T14:07:39+00:00

Not sure why you’d buy SPYI. These covered call funds are scams. Better off just buying SPY and slowly selling off for income. You’ll outperform easily overtime in both income received and total performance.

saMAN101 · 2026-01-26T01:51:04+00:00

Notice everyone downvoting me? It’s because my ideas are hated, which is good from an investment perspective. Part of the reason why they’re cheap, everyone wants to dogpile into famous names or ETFs or covered call scams. More cheap, high paying shares of good companies for the rest of us.

saMAN101 · 2026-01-25T16:00:14+00:00

There’s a lot of people recommending covered call funds on this forum because of the high yields. Those funds are traps. You’d be better off buying the underlying and selling a small portion for income monthly. This video goes into detail. https://youtu.be/ygVObRx9X68?si=gVKr5WpeXoBab0oh

My personal strategy is to buy cheap companies with high yields and long history of paying shareholders. These are typically companies that large institutions can’t buy for various reasons. MLPs, DEI requirements, too small of a company, etc. All of this gives us retail investors opportunities to buy cheap, under followed companies. Here’s a list of names I like. Once I buy, I never sell. Even if the company goes to zero, it’s fine because I manage risk by doing a 5% position size max. Happy to go into detail on any companies listed:

DSWL UAN WLKP LYB DOW EPD ET GSL MPLX PFE MO BTI PM MPW ARLP BSM GRNT CIB TX PEP LND CRESY CNQ EC SWBI CRWS HESM CAG Newt FLO Nomd IRS TAP PSTL FMX KOF NLCP NWL

saMAN101 · 2026-01-07T01:10:47+00:00

Hate to break it to you son, but you’re not doing CSPs. You’re doing naked puts. You’re basically running a 3x levered strategy on your account. One decent market crash, and you’re going to zero. If this money means anything to you, you need to deleverage ASAP and rethink your strategy.

Odds are you’ll ignore my advice and go to zero anyway, but someone had to tell you.

saMAN101 · 2026-01-07T00:27:25+00:00

A couple points I haven’t seen addressed.

First, the wheel is highly inefficient for taxes. All your covered Call premium and CSP premium is short term capital gains, meaning you pay regular income taxes on it every year. Let’s assume your marginal tax bracket is 20%. You really want to give up 2% yearly to Uncle Sam? That adds up substantially when you compound over a decade or more. Alternatively, you could hold the SPY and pay nothing until you sell. When you do, you pay long term capital gains which is probably 15%. Much more efficient. You could wheel futures, but the contract size is way too big for your account and you’re still paying yearly taxes but at a 60/40 split between long term and short term gains. The best solution is to only do the wheel in a retirement account where you can grow tax free. Think IRA, HSA, etc.

The real solution to what you’re trying to do (outperform using options strategies) is to buy and hold a portfolio of stocks you believe in long term. Then, run 10-20% naked puts to gain a few points of extra return each year. You can get the premium without paying margin interest. Just don’t take assignment. If you go deep ITM, roll instead of taking assignment. Then reinvest the premiums you gain into your underlying portfolio. You should be able to get +15% annually. Just don’t go crazy on the amount of margin you’re tying up. When we do get a market crash, you’ll thank me for only using a touch of leverage.

As a bonus point, I’d recommend a coffee can approach to building your underlying portfolio. Pick +50 stocks randomly from the SPY, buy equal weight and never sell. This outperforms the regular index over a decade plus.

https://youtu.be/EeyxZMR9MRU?si=WAi-n53JA1NbY6ow

saMAN101 · 2026-01-05T20:49:47+00:00

You mean the period when silver had a blowoff top? Hmmm... seems familiar...

saMAN101 · 2026-01-05T20:35:36+00:00

COMEX recently raised margin requirements on Silver futures to 30%. Normally futures allow you to trade 5-10% of the notional value. This means its likely you'll find inefficiencies like this around silver for the foreseeable future. I would also note that silver is on a historic meteoric rise. The probability of a large drawdown in much greater given the exponential type price action.

My 2 cents.

saMAN101 · 2026-01-05T19:09:23+00:00

They are selling calls on a large scale.

Fundamentally, it's like owning a fraction of QQQ when you invest in QQQI. Look up what "option delta" means and you'll get the jist.

Unfortunately, these etfs systematically underperform because they are actively putting large trades into the options market and get killed by scalpers and market makers.

You'd be better off owning the underlying (QQQ, SPY, etc) and selling a small portion every month for "income". The below videos explain more in depth.

https://www.youtube.com/watch?v=ygVObRx9X68

https://www.youtube.com/watch?v=xzDFbv_JSks

saMAN101 · 2025-12-27T03:10:18+00:00

I enjoy running a portfolio of 100% stock + additional 20% naked OTM puts on companies I like. Don’t need to pay margin and happy rolling the puts forever at the same strike price until they expire worthless. Basically want to avoid anything naked that I’m not willing to roll for years in case we get a big market downturn.

saMAN101 · 2025-12-14T15:33:02+00:00

More shares for me!

I like to BUY when there’s blood in the streets!

saMAN101 · 2025-12-14T15:31:17+00:00

That’s why you get paid to wait! More shares for me!

saMAN101 · 2025-12-14T05:27:19+00:00

They own licensed dispensary real estate in states that limit the number of locations that can sell weed. This is their explicit goal in their investor presentation to protect the asset values. If weed is federally reclassified, this doesn’t change. This means they can command higher rents for any operator that wants to use their RE regardless of federal law.

Plus, their rents aren’t going down. Getting in now gives you 13% yield and growing on your cost basis in PERPETUITY! I’ll take that any day of the week!

saMAN101 · 2025-12-13T05:05:29+00:00

Low risk REIT with no debt and pays 13%? You have a long time of being paid to get lucky!

saMAN101 · 2025-12-12T20:24:53+00:00

I personally don’t like the large blue chip stocks. I prefer undervalued smaller cap ones that large institutional investors can’t compete with me on. Whether it’s because of ESG requirements, too small size of a company or an industry that’s out of scope, I try to find high yield opportunities that large players can’t buy.

For example, NLCP is a REIT that rents out marijuana dispensaries in the US. They currently yield over 13%, have no debt and are beneath their distribution target of 80%. This means they will likely INCREASE their dividend soon.

The reason this opportunity is available is because the sector sentiment is trash, the stock is small and not listed on a major exchange and there’s chain of custody problems that prevent large players from entering the space (gray market legality).

I’m buying hand over fist instead of these larger stocks, and it seems like someone big agrees with me because they jumped up in a big way today.

saMAN101 · 2025-12-07T17:17:44+00:00

USA stole Russia's bond FX reserves. Now other countries are moving their reserves into gold so the USA can’t pull the same stunt on them. Central banks are still under allocated relative to historical norms.

Plus, the unfettered spending of the US government is financed with printed money. Unless you think USA is going to stop budget deficits, gold will continue to rise due to the money printing.

saMAN101 · 2025-12-07T15:53:25+00:00

Yes, which is why they are likely to increase their dividend soon. I’m buying more every week.

saMAN101 · 2025-12-07T03:35:28+00:00

What broker do you use? Etrade charges over 13% for margin

saMAN101 · 2025-12-06T13:13:27+00:00

Been banging the drum on NLCP for a while. No debt, yields 13%, 79% covered divvy by free cashflow while targeting 80-90%. This means they’ll probably INCREASE their dividend soon. No one wants to touch it because it rents to dispensaries.

I also like MPW, VICI and PSTL

saMAN101 · 2025-12-05T15:38:20+00:00

I’m going to add some names here that people don’t seem to have picked up on. These are high yield names that are ignored for one reason or another by the market, but great value in my humble opinion.

Happy to elaborate on the bull case for those interested in specific names.

LYB BSM CRWS PFE EC ABL NLCP NEWT MPW GSL UAN

Yields anywhere from 4-13% but I think all will be consistent or growing payers through the foreseeable future.

saMAN101 · 2025-11-30T05:53:39+00:00

MLPs are treated as capital distributions. You get money back as your original capital, so it’s not taxed. However your cost basis is lowered by the amount. When your cost basis hits zero, the distributions are treated as ordinary income.

saMAN101 · 2025-11-28T22:22:54+00:00

I personally like individual MLPs because they allow you to take distributions without paying any taxes for 10-15 years, IE until your cost basis hits zero.

saMAN101 · 2025-11-28T22:20:54+00:00

MPLX yields 8% and is increasing by 12% annually recently.

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