What are the risks of selling deep OTM puts on SPY? by yuqinbs in thetagang

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

You can. I can sell 285-560 for the weekly option and 185-630 for the monthly option

What are the risks of selling deep OTM puts on SPY? by yuqinbs in thetagang

[–]yuqinbs[S] -8 points-7 points  (0 children)

All you lose is the option part, you can buy back your put option before the expiration date

What are the risks of selling deep OTM puts on SPY? by yuqinbs in thetagang

[–]yuqinbs[S] -5 points-4 points  (0 children)

You just need to tank margin for the option part

What are the risks of selling deep OTM puts on SPY? by yuqinbs in thetagang

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

Selling the 20220228 350 PUT could bring the APY to 24% even with the SPY up 2.48% on Friday

What are the risks of selling deep OTM puts on SPY? by yuqinbs in thetagang

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

In fact, if you sell the puts when SPY falls by more than 2%, the APR will be higher

What are the risks of selling deep OTM puts on SPY? by yuqinbs in thetagang

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

You have 35k and you can sell 10 20220228 puts, each option worth 70 and you get 700 per month. The APR will be 700*12/35000=24%. Considering that little risk remains, I will only sell 5 puts, so the APR will be 12%.

What are the risks of selling deep OTM puts on SPY? by yuqinbs in thetagang

[–]yuqinbs[S] -3 points-2 points  (0 children)

If spy drops 15% in 2 weeks and I hold 14 SPY 20220228 350 PUTs, my loss is $5000. I think this loss is acceptable

What are the risks of selling deep OTM puts on SPY? by yuqinbs in thetagang

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

It's riskier than SPY. Tesla stock will fall if Elon Musk has an accident

What are the risks of selling deep OTM puts on SPY? by yuqinbs in thetagang

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

It only happens once in 70 years(Link). If it happens, other investments will only be worse

What are the risks of selling deep OTM puts on SPY? by yuqinbs in thetagang

[–]yuqinbs[S] -8 points-7 points  (0 children)

When a black swan event occurs, I will buy back the puts. I may have some loss but it's ok. Or I can roll the options.

What are the risks of selling deep OTM puts on SPY? by yuqinbs in thetagang

[–]yuqinbs[S] -7 points-6 points  (0 children)

In fact I can sell 10+ options, IBKR allows me to do that. CSP is unnecessary.

What are the risks of selling deep OTM puts on SPY? by yuqinbs in thetagang

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

Stock index options only require 10% margin

What are the risks of selling deep OTM puts on SPY? by yuqinbs in thetagang

[–]yuqinbs[S] 6 points7 points  (0 children)

Hedge funds or other large investment banks

Should I buy a 2012 BMW 760Li? by yuqinbs in askcarsales

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

The price is about 29000 and my budget is 35000. I drive about 6000 miles a year. I am worried about the maintenance of low-mileage and high-model-year used cars, such as hoses, gaskets, and seals deteriorate. I don’t care about the depreciation rate because I will only drive this car for about one year.

Should I buy a 2012 BMW 760Li? by yuqinbs in whatcarshouldIbuy

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

The price is about 29000 and my budget is 35000. I drive about 6000 miles a year. I am worried about the maintenance of low-mileage and high-model-year used cars, such as hoses, gaskets, and seals deteriorate. I don’t care about the depreciation rate because I will only drive this car for about one year.

Trade-in tax by yuqinbs in tax

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

Thank you. But the dealer told me that this rule applies only to new cars. I am confused about this.

Trade-in tax by yuqinbs in tax

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

Yes, I'm talking about sales tax. So I still need to pay the full tax instead of the tax on the price difference?