Quote:
Originally Posted by Chick Webb
I don't think we're at the bottom yet (trend is still lower highs and lower lows) so I don't want to buy anything outright, and while 4% on 1-yr Treasuries is certainly an improvement, it's still a negative real rate. So, broker and I agreed to use the cash in my IRAs to sell Jan '23 cash-secured puts on several big names. Strike prices all about 10% below current (AAPL, for instance, @$130) and all stocks that I would be happy to own at those prices if the options get exercised. Collected premiums to the tune of about a 13.5% annual rate-of-return. If I'm wrong and the trend reverses before the end of January, I'll likely buy the options back to free-up that cash and buy the stock.
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Interesting strategy. How much capital did you put at risk in the options whose premia yielded 13.5%?