Safe short term play?
With the market at ATM, I was able to close most positions but don't want to get back in yet. Now waiting for a pull back.
What is your favorite strategy to get a few pennies for coffee?
Posted Nov 28, 2023, 5:18 PM UTC
624
I'm playing TXN right now because I wanted semiconductor exposure without the heartburn that comes with NVDA.
4
Write an option 3 months out. Get a cup of coffee every day
4
Usually but I believe market will pull back in a few weeks so I want to stay liquid. Just want to extract a few pennies while I wait đ
2
Write a call instead of a put...
6
Why do you think we'll have a pullback?
1
Fast rally followed by a stagnant/slow week usually signals a pull back. Put flow is also building.
There will likely be a pull back first half of Dec, then go higher.
1
I think we're in a consolidation phase and we're going to go up further before year end. But I've had this belief since August so I doubt I'm going to change my mind. And I was wrong about October.
You could be right. I won't sell my calls, but I will keep them further dated.
1
Whatâs ATM
3
At the money.
2
In this context, I think they mean At The Moment
1
They corrected it to state ATH
2
Sqqq or tqqq to lessen the IV madness
3
Sell calls far out of the money while you wait for a pull back.
3
Whatâs your required return? Is it a % or a daily fixed amount? Seems like you could back into that number and then go hunt what you âfeelâ would be safest
2
Basically, I'm trying to find a ticker with zero or negative beta and doesn't tank when market does. When pullback happens, I can liquidate them and start writing "real" options.
2
If youâre sure the market is going to tank youâre either better off writing puts on the company you want to own or selling calls on the ones that wonât keep rising. If youâre looking for safe have you screened utilities and consumer staples? COST just doesnât lose.
1
Iâve been selling credit spreads on ARM & RBLX
2
iâve been gravitating to smaller positions. lot of diagonals and broken wing butterflies. have a bullish BWB on MSFT expiring this friday (+375c / -2x380c / +382.5)⌠have a different bearish on for apple i put on today that expires in january (+185c / -2x190c / +200c)⌠i find that in times of uncertainty, smaller theta positive positions let me stay flexible with the majority of my buying power still available if we start dropping
2
Well, while we wait for that long-awaited pullback, let's take a sip from the fountain of knowledge and check out Recommended reading list for some caffeine-free investment tips!
1
You could just accept lower premium and or sell further out.
And according to your comments, you have a crystal ball and you are pretty sure about the "pullback", so just sell atm covered calls on your positions?!
1
If you want a safe short term play get a high yield savings account at like 5% or something. There is no short term market strategy that yields higher than 5% that I would call "safe".
Totally agree with you on the high yield savings account option. It's a smart way to play it safe and still get a decent return. And yes, you're bang on about the 5% rate. Actually, there are quite a few options out there offering around that.
Just to help anyone who might be interested, here's a bit of a handy-dandy chart I put together with the current top APY savings accounts.
Bank | APY | Link | Min. Deposit | Fees :-:|:-:|:-:|:-:|:-:|:-: CIT Bank (Platinum Savings) | 5.05% | Link | $5000 | None
Synchrony Bank | 4.75% | Link | $0 | None
CIT Bank | 4.65% | Link | $100 | None
Sofi Bank | 4.60% | Link | $0 | Direct deposit required to get the highest rate.
Quontic Bank | 4.50% | Link | $100 | Excess transaction fee (over six) - $10.00
Live Oak Bank Savings | 4.40% | Link | $0 | A monthly $10 dormant account fee is administered if an account has no activity (defined as no withdrawals, deposits, contact or log-ins) for 24 straight months.
This isn't financial advice, just info. Always dig into the details before you make a move, but I hope this helps y'all in finding the best spot for your cash. Cheers!
Most of my cash is in sgov. I just want to get a few pennies from the generous margin broker provides while staying liquid.
Basically something very low risk and very low reward.
low risk low reward is going to be looking at things that are low delta and/or low implied volatility. A couple of options you may consider
- Selling long dated far out of the money puts on SPY. Not sure exactly what risk level you are looking for but I would look at something like 90 days to expiration and 15 delta. Be sure to check bid ask spread, could be low enough volume that you will get terrible fills
- Selling puts on extra low implied volatility funds. I would look at utility etfs like VPU but other market sectors like maybe a bank ETF or a bond fund could be worth looking into.
Thank you! Giving me a lot to think about đ
Lower delta, lower risk, lower rewards.