I think CDs are offering close to 6% if you want the safest.
But funny enough you could hold one of any tech or AI stock and make that 6% in about a week
CrowdGoesWildWoooo on
If someone can do it (consistently), just go apply to top hedgefund. Why bother posting in reddit.
PipSpirit on
Bondora Go and Grow? 😀 Täglicher Zugriff etc. Zwar keine Option/ aber dennoch interessant
BizarreReverend76 on
Buy and hold SPY, VOO, or another total market index fund every month, and make no other trades whatsoever. That sounds snarky but it is the truth; in fact that strategy will statistically outperform most of us in this sub.
I_HopeThat_WasFart on
75% in long term treasuries, the rest in ultra low delta put selling 30 DTE (your treasuries being your collateral)
OurNewestMember on
By “safe” I assume that basically means low volatility in returns.
Interest rates are hovering around 4%, so we could ask what returns an extra 2%age points with low volatility.
My initial thought is something like selling tail risk on a slightly volatile index, but I don’t know the actual returns volatility in that (to answer the “safe” side of the question). Also there are many ways to do that in the first place, too.
TotalInstruction on
You can make that parking half of your money in SPY and half in a government bond fund like SGOV. Hell, there are some corporate stocks like REITs that pay 6%, 7% yield in dividends.
nitsuj2030 on
Cash flow or gains?
If it’s just gains then most US / World ETFs will get you 6% pre tax with minimal work.
Bobatronic on
It’s safer to get comfortable with risk (by know what you are investing in) and understand volatility, using it to your advantage.
I’ve done 14.5% annualized since 2008.
How:
I don’t trade securities I don’t understand. I’m a fundamental investor, mostly.
Sure you can make a little bit of income selling puts on quality stocks down on their luck — the wheel strategy. In my experience, these trades only work half the time. Volatility to the upside and downside may make the wheel strategy tough to do — all the time.
You can know some stocks that no one talks about and try to anticipate what the market does not fully appreciate 12-24 months out. This is alpha. This is how I make most of my returns. Sell puts at various strikes and time periods and try to acquire shares a discount. (Some puts will expire worthless.). Be patient. You believe your trade idea is 24 months or more in the making. Realistically most people aren’t analytical and patient enough to do this. But it’s proven. Be happy when your best idea trades down. Sad when it goes up. You aren’t buying shares all at once. Take your time. Refine your thesis. Become a top analyst. Really understand how the company will make money, not just have cool technology.
You can also trade merger spreads. The safest trades are cash secured merger spreads of less than 8%, in my opinion. Don’t be an idiot and try to trade an obnoxious 30% or 50% merger spread. Deals fall apart all the time. Look for a deal that has some meat on the bone. You can sometimes get an annualized rate of return of more than 6% on small 2% or less spreads, from deals that are closing soon. Understand that regulators are often irrational. (Look up the RiteAid merger deal, ticker RAD). And deals are often delayed, exceeding management guidance on closing. The best targets are stocks that have strong fundamentals, and you’d be happy to own them regardless of the merger. Synopsys’ acquisition of ANSYS is an example. ANSYS is a great company.
10 Comments
SP500
I think CDs are offering close to 6% if you want the safest.
But funny enough you could hold one of any tech or AI stock and make that 6% in about a week
If someone can do it (consistently), just go apply to top hedgefund. Why bother posting in reddit.
Bondora Go and Grow? 😀 Täglicher Zugriff etc. Zwar keine Option/ aber dennoch interessant
Buy and hold SPY, VOO, or another total market index fund every month, and make no other trades whatsoever. That sounds snarky but it is the truth; in fact that strategy will statistically outperform most of us in this sub.
75% in long term treasuries, the rest in ultra low delta put selling 30 DTE (your treasuries being your collateral)
By “safe” I assume that basically means low volatility in returns.
Interest rates are hovering around 4%, so we could ask what returns an extra 2%age points with low volatility.
My initial thought is something like selling tail risk on a slightly volatile index, but I don’t know the actual returns volatility in that (to answer the “safe” side of the question). Also there are many ways to do that in the first place, too.
You can make that parking half of your money in SPY and half in a government bond fund like SGOV. Hell, there are some corporate stocks like REITs that pay 6%, 7% yield in dividends.
Cash flow or gains?
If it’s just gains then most US / World ETFs will get you 6% pre tax with minimal work.
It’s safer to get comfortable with risk (by know what you are investing in) and understand volatility, using it to your advantage.
I’ve done 14.5% annualized since 2008.
How:
I don’t trade securities I don’t understand. I’m a fundamental investor, mostly.
Sure you can make a little bit of income selling puts on quality stocks down on their luck — the wheel strategy. In my experience, these trades only work half the time. Volatility to the upside and downside may make the wheel strategy tough to do — all the time.
You can know some stocks that no one talks about and try to anticipate what the market does not fully appreciate 12-24 months out. This is alpha. This is how I make most of my returns. Sell puts at various strikes and time periods and try to acquire shares a discount. (Some puts will expire worthless.). Be patient. You believe your trade idea is 24 months or more in the making. Realistically most people aren’t analytical and patient enough to do this. But it’s proven. Be happy when your best idea trades down. Sad when it goes up. You aren’t buying shares all at once. Take your time. Refine your thesis. Become a top analyst. Really understand how the company will make money, not just have cool technology.
You can also trade merger spreads. The safest trades are cash secured merger spreads of less than 8%, in my opinion. Don’t be an idiot and try to trade an obnoxious 30% or 50% merger spread. Deals fall apart all the time. Look for a deal that has some meat on the bone. You can sometimes get an annualized rate of return of more than 6% on small 2% or less spreads, from deals that are closing soon. Understand that regulators are often irrational. (Look up the RiteAid merger deal, ticker RAD). And deals are often delayed, exceeding management guidance on closing. The best targets are stocks that have strong fundamentals, and you’d be happy to own them regardless of the merger. Synopsys’ acquisition of ANSYS is an example. ANSYS is a great company.