Submitted by Positive-Shake6886 t3_zw8shz in wallstreetbets
my_name_is_gato t1_j1tie1k wrote
Sell cash secured puts well OTM to build capital, then start shopping closer to ATM or even ITM until assignment. Sell covered calls OTM until you decide to protect your shares by rolling the contract or you again welcome getting your shares called away at a profit. Then sell another cash secured put...
Avoid the wash sale by going out 30+ days or pick a different ticker and do weeklies if you want to maximize theta decay. It is a bit of preference here, mostly in terms of how much you want to monitor your position. Weeklies trade on gamma as much as delta so they need pretty careful attention or you will get burnt if you sell Monday and check Friday.
Aside from a massive market crash or picking a very volatile stock, this is a pretty well tested method of making money in a small portfolio with access to margin. It won't likely make 10x in a month or two, but given time, it will.
Relevant-Nebula8300 t1_j1tmo4p wrote
He can’t cash secure puts with $50-$100 you regard
my_name_is_gato t1_j1tntx9 wrote
With access to margin you illiterate. I'm not saying it is super easy to get the ball rolling. Going way OTM for safety might be necessary despite it meaning a pittance in premiums. I was asked to pave a path to 10x with a tiny amount. I welcome a better idea than a ODTE yolo call.
Relevant-Nebula8300 t1_j1tnz0a wrote
Could day trade it. I know you’re an idiot so let me explain…. You can’t get margin on an account with less than $2000 & besides cash secured puts are secured by your own cash not margin loans
my_name_is_gato t1_j1trj8r wrote
Whew. I'm glad someone caught that. Genuine thank you.
[deleted] t1_j1tod6a wrote
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