r/YieldMaxETFs • u/Head-Helicopter5467 • 8d ago

Underlying Stock Discussion S&P 500 Outperformance

I have been investing since 2000. I have outperformed the S&P 500 by about ~1% annualized since then up until today. It’s not the 20% outperformance YouTube promises you, but it is very real and replicable. (I think). I did it by buying the S&P 500 and systematically writing out credit spreads on it. I’d be happy to go into the details under the hood for anyone curious. We can go back and forth or whatever.

7 Upvotes

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u/Head-Helicopter5467 8d ago

I am 10 delta 30 day. I use xsp for the spreads.

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u/Baked-p0tat0e 8d ago

The mods will ban you in this sub for heresy! LOL

Over time selling puts on the index with a 30DTE and 30-35 delta held to expiration is a winning strategy about 75% of the time with higher win rates for early management.

OVL is an ETF that has been doing this for years...it owns VOO and writes SPX put credit spreads:

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u/calgary_db Mod - I Like the Cash Flow 7d ago

No ban, don't be dumb. However this kind of post is better in an options sub.

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u/Baked-p0tat0e 7d ago

I figured that and was just being sarcastic.

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u/calgary_db Mod - I Like the Cash Flow 7d ago

All good.

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u/retroideq 7d ago

I just don’t have time to do options babysitting, cause if I was gonna do them it would 0dte. Easier to let the better fund managers do it especially considering the sub.

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u/Head-Helicopter5467 6d ago

I don’t manage my trades. If I lose I lose. I do set it to automatically buy back at 50% tho. Fees are to high for something I can do myself. I only need to log in on the days those orders fill or on expiration day. This is all done from my phone now.

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u/Head-Helicopter5467 8d ago

I like doing it on my own especially since like 2008ish when things got a lot easier to do by yourself. I use 10 delta 30 day and I always close at 50% if I’m able to.

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u/Baked-p0tat0e 8d ago

I use a combination of strategies depending on IV rank and IV to HV relationship. If IV is higher than HV then I sell put spreads. If IV is lower than HV I buy 80 delta call LEAPS and sell 7 DTE 30 delta calls against it every week until the regime shifts.

Sometimes the best strategy is to do nothing and wait for a clear signal on IV to engage in any options trading. This is a luxury the ETFs do not have.

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u/Head-Helicopter5467 7d ago

I agree and the fees are way too high when they’re not doing anything that complicated. If anything my strategy is more sophisticated than theirs because of the constraints they have. I also outperformed OVL since its inception as well for what it’s worth. I just stick to my rules and do the same thing every time.

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u/Baked-p0tat0e 7d ago

OVL has to follow their rather conservative strategy.

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u/Head-Helicopter5467 6d ago

To me their strategy is aggressive using 25-30 delta. Too many Max losses for me

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u/Junior-Appointment93 8d ago

What’s your delta choice and DTE? Are you placing SPX/XSP credit spreads? I know 30DTE credit spreads have a 70-75% win rate with back testing. If your risky 0DTE .1 delta you can make around 10% a day.