>>1024519 >covered calls >cuz merca >Stocks with good fundamentals, pays a dividend, and has a liquid options market for it. >Planning to open an interactive brokers account next week since covered call trading is way to pricey with my current broker.
>>1024520 What do you look for in regards to fundamentals specifically? What makes you tick and feel good about your investment? Also, exactly what do you mean by a liquid options market?
And for me >Bull Put Spreads >Not too much reward, but consistently high rate of payoff >Stocks that I'm bullish on because of their technicals, mainly stochastics and bollinger bands, because I'm doing weeklies. >haven't in a bit but considering doing some weeklies on either AAPL of GOOG. Usually good spreads for the latter and AAPL should be coming back pretty soon i think
>>1024533 >What do you look for in regards to fundamentals specifically low debt to equity, low p/e, pays a dividend. The kind of stock that value investors normally like to buy and hold (in case the stocks dont get called)
> a liquid options market? that is, the options being bought and sold for the underlying security are actively traded enough so that there is a low ask bid spread
Covered calls are the most vanilla option strategy, so I am staying on this for now. However I am interested in Nassim Taleb's favored strategy of investing most funds into money market and bonds, and investing 5-10 percent of portfolio into straddles (long puts and calls). The idea here is to profit from any volatility that is bound to happen, while being relatively safe with the rest of your portfolio
>>1024547 That sounds like a great idea. Right now I'm mostly in just some long term blue chips that are relatively stable and have been bringing in solid returns (though technically unrealized because of how long term they are), but I may move over to that idea over the course of the next few years. its like having a safety net while still being able to have the fun of profiting on volatility.
>>1024519 >favorite strategy I also like to sell calls, usually covered >why because it works >what you look for in picking I'm long the stock already for fundamental reasons, but if a call looks too expensive to me over the near term for technical reasons, I'll sell it. Basically just trying to identify when good, solid stocks are going to grind up small amounts over short periods and collect a little money from the call while they do so. >current trades got some covered calls in NKE, FB & ELLI to name a few. The ELLI trade in particular I think I did a good job of selling the call at its peak volatility level.
I plan to do cash secured puts on some blue chips i tend to hold long term. Been paper trading it for the past year, returns are ok.
reason being, in the past, i don't do DCA on stocks i wanna buy, usually i pick it up during a huge correction. I find that this strat compliments my investing style, a good way to generate side income while waiting for the stock price to drop.
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