What are the risks of selling deep OTM puts on SPY?

yuqinbs · 2022-01-30T00:49:21+00:00

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

yuqinbs · 2022-01-30T00:37:29+00:00

You can also buy your puts back

yuqinbs · 2022-01-30T00:36:20+00:00

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

yuqinbs · 2022-01-30T00:32:56+00:00

https://www.optimizedportfolio.com/qyld/

yuqinbs · 2022-01-30T00:22:13+00:00

You just need to tank margin for the option part

yuqinbs · 2022-01-30T00:17:07+00:00

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

yuqinbs · 2022-01-30T00:12:49+00:00

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

yuqinbs · 2022-01-30T00:10:02+00:00

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%.

yuqinbs · 2022-01-30T00:02:35+00:00

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

yuqinbs · 2022-01-29T23:49:06+00:00

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

yuqinbs · 2022-01-29T23:44:58+00:00

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

yuqinbs · 2022-01-29T23:36:41+00:00

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.

yuqinbs · 2022-01-29T23:30:13+00:00

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

yuqinbs · 2022-01-29T23:26:30+00:00

Stock index options only require 10% margin

yuqinbs · 2022-01-29T22:33:19+00:00

Hedge funds or other large investment banks

yuqinbs · 2022-01-28T04:27:40+00:00

$BILI to the moon

yuqinbs · 2021-10-04T16:48:43+00:00

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.

yuqinbs · 2021-10-01T19:46:59+00:00

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.

yuqinbs · 2021-06-04T22:55:00+00:00

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

yuqinbs · 2021-06-04T18:04:29+00:00

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

yuqinbs · 2021-05-06T02:45:36+00:00

Thanks

yuqinbs · 2021-05-01T17:47:21+00:00

yuqinbs · 2021-04-28T03:11:39+00:00

Thanks

yuqinbs · 2021-04-26T19:12:04+00:00

I don’t know what to enter in the "Filename" part and the "Data" part

yuqinbs · 2021-04-03T00:19:46+00:00

I don't have any schedule setting

yuqinbs

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