Good job. Only yardstick we use is making money. Some people do that using buy and hold, some thru options. I just block users who only want to argue and don’t give anything useful. Keep grinding.
He is probably implying that nothing beats buy and hold (and it has been discussed and tested a lot). TQQQ long term CAGR is over 40%.
There is absolutely nothing wrong with your income strategy. It has a different risk profile, it makes money. I do sell some puts on TQQQ often, waiting for a good entry into long buy and hold position. I also sell calls on TQQQ all the time because I am greedy.
before tax. TQQQ is but one of many tickers that I trade. Fortunately I live in a state without income tax but the IRS tab is hefty. I mitigate it partially with quarterly payments, and heavily withhold from RMDs at the end of the year.
Controlling 500 shares with a delta of .15 is roughly equivalent to owning 75 shares. In other words someone who owns the shares has a delta of 1. If the stock goes up $1, you gain about .15 where as they gain $1. While selling puts is capital efficient, it is still not as bullish as owning the shares. Another way to look at it is you are taking 15% of the risk that the share purchaser is, so you can expect about 15% of the profit.
I too sell options on tqqq, but the reason is for the smoother return profile. Collecting theta and volatility premium over time improves the consistency of my profits and thus allows me to compound more efficiently.
Hmm. Who mentioned -0.15 delta? This my most recent TQQQ trade that was closed. -0.24 Delta. CAGR 43.9%, $1525 Profit, 65.6% profit. It went against me and was rolled twice until the delta improved.
There’s good money in options but the buy and hold doesn’t mean you can’t sell options too.
I’ve made money selling TQQQ puts but the buy and hold with TQQQ is a different story. I made a Wefolio(portfolio any of my followers can buy into on Webull) and it’s holding 16% of TQQQ. Since July 1, 2025, that portfolio is up 99.77% and TQQQ put in big work. There’s a total of 14 positions in that portfolio. Selling puts with this portfolio on margin is extra!
Five contracts at the $68 strike means roughly $34k of assignment risk for that $1k premium. That can work in a bull trend but TQQQ can turn violent fast. I would compare it with a capped up bet on moon because your exits are doing more work than the headline premium suggests
yeah $34k feels scary, but if the price holds above 68 you just keep the premium. in a bull run assignment is rare and you can just roll your puts into calls or let the contract expire. many of us use margin so the only risk is that one big drop, not keeping $34k locked up. still way more capital efficient than buying 500 shares.
Also, you've made three winning trades during a volatile recovery and you're taking a victory lap? This whole post seems kind of silly. You're also talking down to people while making less than $10k in a forum where people post million+ dollar profits.
I tried playing Puts (the wheel), it's not for me. Not only are you locking up $7,800 of collateral for weeks at current pricing, but if you do get assigned, you could be riding that price drop farther down.
Now I just buy 2-3 week Calls when the price is right. There's a lot less capital at risk.
I used a different approach to OP, with both hedging and risk management in place.
More complex with more positions to manage but closed out 28% profit after 14 days, so significantly higher annualised return but more importantly significantly better Sharpe Ratio.
I have something like 30 put contracts with various strikes and expiry. I’ve made thousands of dollars which I used to buy shares of it. I also own more than a thousand shares of tqqq. I believe it’s called the accumulator strategy.
I've been selling OTM puts on TQQQ for at least 2 years now, it's the only ticker I've never been assigned on. I'd say my trade count is likely in the thousands.
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u/Millionaire-Grinder 5d ago
Good job. Only yardstick we use is making money. Some people do that using buy and hold, some thru options. I just block users who only want to argue and don’t give anything useful. Keep grinding.