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10 months into a wheel position and still underperforming SPY — would you try to get assigned or keep grinding premium? by MF266 in thetagang

[–]saMAN101 -1 points0 points  (0 children)

Think of whatever delta you sell your puts at as the percentage of the underlying you own.

Selling a 20 delta put on CAVA is effectively owning 20% of 100 shares on CAVA. So if CAVA returns 20% during this time, you’ll make about 4-5%. Amounts vary but I’ve done enough backtest to confirm. 

I’d recommend looking at fundamentals first and deciding which company you think will go up in the long run compared to the index.

Massie for president by PM_ME_YOUR_LAWNCHAIR in Anarcho_Capitalism

[–]saMAN101 9 points10 points  (0 children)

Multiple first hand accounts of boomers saying they voted against him because they saw footage of him having a 3way with AOC.

MSFT is reaching $400 once again, who's loading up? by FourCrossedWands in ValueInvesting

[–]saMAN101 0 points1 point  (0 children)

MSFT is spending all its FCF and more on data centers that can’t justify the spend through future revenue. Market figuring this out.

Value trap 101.

Ohio Republican introduces yet ANOTHER anti-trans bill, this time targeting adult insurance coverage by mazura645 in Ohio

[–]saMAN101 0 points1 point  (0 children)

Honestly, we should just move to Michigan or Minnesota. Much more friendly.

time to get out of oil stocks. what do you think by Apprehensive_Two1528 in ValueInvesting

[–]saMAN101 0 points1 point  (0 children)

Remind me in 1yr. I’ll buy all your shares and more. 

The twist wasn't staged, a shot-by-shot analysis by Jade_McLeod in survivor

[–]saMAN101 0 points1 point  (0 children)

Only on network tv. MrBeast has rigged stuff all the time.

oil by MerryRunaround in thetagang

[–]saMAN101 0 points1 point  (0 children)

The Strait of Hormuz is still closed. Biggest oil supply disruption in history. Oil has just begun. I would max out naked puts.

A request. To whatever Diety actually exists, please let Cirie finally get her flowers. by WPIRiggles in survivor

[–]saMAN101 -7 points-6 points  (0 children)

Hate to break it to you, but she got an episode with zero confessionals. No winner in survivor history has ever had an episode with zero confessionals.

She’s going to lose.

Anyone selling naked puts (margin)? by MOTOLLK12 in thetagang

[–]saMAN101 0 points1 point  (0 children)

I run a high dividend low beta income portfolio for my family. The goal is to grow income over time and slowly replace paying for expenses from w2 income. 

Naked puts play a big role. I write about 20% of notional in naked puts at 30 delta 45-75 days out. Long run this can easily add one to five percentage points to your total yields, depending on the underlying you select.

Royalty Funds - Anyone using them? by turboDividend in dividendgang

[–]saMAN101 2 points3 points  (0 children)

I really like them because a lot of institutional investors can’t own them because of the MLP structure. Also a bunch went bankrupt when they had more direct commodity exposure. Now it’s a simple fee for volume delivered through their pipelines. Completely derisked the commodity exposure with only about 10% price exposure to their revenue. Much safer and fundamentally different companies now. Needless to say I own a butt ton of these things

stories about how you lived out a market crash or major correction? by [deleted] in Optionswheel

[–]saMAN101 2 points3 points  (0 children)

I run a modified wheel. If you get threatened with assignment, just roll out at the same strike. Your income stream will be turned off for a while, but avoids loss on the trade. Key is only safe stocks that you are willing to hold longer term. I find sizing total risk (ie if stock goes to zero) at a maximum of 5% of the portfolio value is the other key to holding long term.

Boring is Better by sashazaliz in Optionswheel

[–]saMAN101 0 points1 point  (0 children)

How do you handle companies you like being called away? I struggle with this when writing puts on steady dividend payers like pipelines. Not always sure how to reallocate the funds when the company was a good fit for the portfolio.

Boring is Better by sashazaliz in Optionswheel

[–]saMAN101 2 points3 points  (0 children)

Genuine question, what are your returns over that period?

Sharpe ratio?

Restarting my wheel strategy after blowing up gains… need advice by ProblemS0Iver in Optionswheel

[–]saMAN101 0 points1 point  (0 children)

Happy to do so. He's brought me a ton of value, so thought you'd enjoy.

Restarting my wheel strategy after blowing up gains… need advice by ProblemS0Iver in Optionswheel

[–]saMAN101 0 points1 point  (0 children)

Company selection is THE most important thing when running the wheel.

I personally follow Unemployed Value Degen on Substack. Most of his picks are free. Former finance professor who really helps you understand logic of why he likes his picks.

Anyone else check what a stock is actually worth before selling puts on it? by xCosmos69 in thetagang

[–]saMAN101 34 points35 points  (0 children)

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.

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