Hey guys, I'm contemplating a big change in the way I invest and I wanted to hear your opinions. I have $80k invested in S&P500 and $50k in a more aggressive portfolio with stocks like ASTS, ONDS, etc. So far my aggressive portfolio is doing well and I want to let my winners run there.
I've recently realized the $80k I have sitting on the S&P could (potentially) be utilized to yield a much higher ROI by selling options, especially on volatile stocks like said ASTS or ONDS – the premiums are super juicy and I want to take advantage of that. I'm mostly interested in this for the purpose of having constant income.
For example, let's take ASTS, a stock about which I'm super bullish and would love to own more of, for the right price. With $80k I can sell Apr 10 puts (31 days to expiry) at a strike price of $70, way OTM, and pocket $2880 in premium. The odds of me getting assigned are low and even if I were to be assigned these shares for $70 I wouldn't mind it because I'm really bullish and I could start selling CC's against my shares.
The main question is, what would you do? Would I be better off just leaving $80k "safely" invested in the S&P500 for a few years while trying to grow my aggressive portfolio or use that money for wheeling?
Posted by Ok_Ranger1275
4 Comments
>>the premiums are super juicy and I want to take advantage of that
You will be surprised why they are so juicy……
Wheel SPY or SPX.
Don’t chase premiums..
What do you want, growth or income? My principles are the best way to grow through income.
Start with a good growing div stock like getting xom in the $50. Get the div 100 percent of the time. While writing options as it grows while keeping the shares.
I only paid 1 price for it, and as it grows to $130 or whatever price it is, grab more conservative otm calls .
You like income writing on non income stocks, so good luck on that. Mixing the 2 can be hard.
Point #1 Don’t do it. You literally have no idea what you’re talking about, or what you’re doing.
Point #2 if your initial reaction from reading this is getting offended and coping that you actually know what you’re talking about, then go back to point #1