Thread: Side Hustle
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Old 12-20-2020 | 11:49 AM
  #441  
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JamesBond
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From: A350 Both
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Originally Posted by Gunfighter
With a hypothetical play portfolio of $100,000:
-How many positions would you hold?
-Do you keep them equal in size?
-How far out would you be buying/selling premium?
-How often are you trading in/out of positions?
-How much time are you spending per day/week/month managing the positions?
It depends on whether or not it is a margin account, and if it is, how much leverage can you use? I sell weeklies for the most part. I also look to make about $75 to $150 (on average) per week per $25,000. So with $100,000, I would try to make about $400/week. Sometimes I can do it, sometimes not. Here's an example of something I might do. The QQQ options for Dec 24th $305 strike price was $1.15 on Friday. (I'm rounding numbers.) So with a $100,000 stake, you could sell 3 Put contracts netting $345 for the week. So using my goal, I would be tying up $91,500 to get that premium, and if it gets assigned, I would be getting the ETF at $5 under the current price. (I would then turn around and start selling covered calls on it for $305 or $306) So with my goal of $100/$25,000 in mind, I actually would get about 91 cents. That is on a cash secured basis. If you can use margin, you can do more, but if it starts going down you either have to roll down to later which potentially kills the return. That's what I do a lot of. In March I got margin called about 3 times in one week and took a bath getting out of those contracts. It took me until October to dig out. One thing I learned is to use limit stops. Trailing stops are the best, but Ally just stopped offering those which pizzes me off no end. Anyway... I hope this helps. It is not intended as investment advice, it is just a snapshot of what I do. dyodd, ymmv, etc etc...
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