Stock Market

[Del.]

Wise advice.

[mkd]

pretty ugly today.

[mkd]

money market and treasuries are paying better than 'high' dividend ETFs.

[Del.]

money market and treasuries are paying better than 'high' dividend ETFs.

I moved most of mine into CD's. Not much profits but 4% is better than losing.

[mkd]

cash position in tax advantaged accounts are going into the broker's money market. Then i'll be writing cash secured puts at some lowball price of whatever has high implied volatility to make a double dip percentage on the same cash position.

[mkd]

Nobody gave me an LoL for the jargon overload.🤣🤣🤕

[Del.]

Nobody gave me an LoL for the jargon overload.🤣🤣🤕

I almost did.  I didn't understand any of it.  Lol

[Del.]

Hahahaha!
I forgot to post - I understand the meaning of each word, but not in your sentences!

I thought Gerald was posting. Lol

[Del.]

[mkd]

chat gpt:
what is a cash secured put and how does implied volatility affect it?


answer:
A cash secured put is a financial options trading strategy in which an investor sells a put option contract, which gives the buyer the right to sell a specific underlying asset (such as a stock) at a certain price (the "strike price") before a certain date (the "expiration date"). The seller of the put option receives a premium payment from the buyer in exchange for taking on this obligation.

To "secure" the sale of the put option, the seller (also known as the "writer") must set aside enough cash to cover the potential purchase of the underlying asset at the strike price. This means that the seller must have enough cash in their account to buy the asset if the buyer exercises their right to sell it.

Implied volatility is a measure of the expected fluctuations in the price of the underlying asset, as implied by the market price of the options contract. When implied volatility is high, it means that the market expects the price of the underlying asset to experience significant fluctuations. When implied volatility is low, it means that the market expects the price of the underlying asset to remain relatively stable.

The level of implied volatility can have an impact on the price of the options contract, and therefore on the premium payment that the seller receives. When implied volatility is high, the premium payment for the put option contract will typically be higher, as the buyer is willing to pay more for the right to sell the asset at a higher strike price. This can be advantageous for the seller of the put option, as they will receive a higher premium payment.

On the other hand, when implied volatility is low, the premium payment for the put option contract will typically be lower, as the buyer is less concerned about the potential for significant fluctuations in the price of the underlying asset. This can be disadvantageous for the seller of the put option, as they will receive a lower premium payment.

In summary, the level of implied volatility can affect the price of a cash secured put by impacting the premium payment that the seller receives. When implied volatility is high, the seller may receive a higher premium payment, while when implied volatility is low, the seller may receive a lower premium payment.

[Jim at Gentex]

^^^TLDR^^^ 

I'm going to go with my favorite quote from Curly of The Three Stooges...

"I try ta think, but nuttin' happens..."

[gcode]

chat gpt:
what is a cash secured put and how does implied volatility affect it?


answer:
A cash secured put is a financial options trading strategy in which an investor sells a put option contract, which gives the buyer the right to sell a specific underlying asset (such as a stock) at a certain price (the "strike price") before a certain date (the "expiration date"). The seller of the put option receives a premium payment from the buyer in exchange for taking on this obligation.

To "secure" the sale of the put option, the seller (also known as the "writer") must set aside enough cash to cover the potential purchase of the underlying asset at the strike price. This means that the seller must have enough cash in their account to buy the asset if the buyer exercises their right to sell it.

Implied volatility is a measure of the expected fluctuations in the price of the underlying asset, as implied by the market price of the options contract. When implied volatility is high, it means that the market expects the price of the underlying asset to experience significant fluctuations. When implied volatility is low, it means that the market expects the price of the underlying asset to remain relatively stable.

The level of implied volatility can have an impact on the price of the options contract, and therefore on the premium payment that the seller receives. When implied volatility is high, the premium payment for the put option contract will typically be higher, as the buyer is willing to pay more for the right to sell the asset at a higher strike price. This can be advantageous for the seller of the put option, as they will receive a higher premium payment.

On the other hand, when implied volatility is low, the premium payment for the put option contract will typically be lower, as the buyer is less concerned about the potential for significant fluctuations in the price of the underlying asset. This can be disadvantageous for the seller of the put option, as they will receive a lower premium payment.

In summary, the level of implied volatility can affect the price of a cash secured put by impacting the premium payment that the seller receives. When implied volatility is high, the seller may receive a higher premium payment, while when implied volatility is low, the seller may receive a lower premium payment.

Cliff Notes... a really good way to go broke

[mkd]

Cliff Notes... a really good way to go broke

Yes, you can easily treat it like gambling.  Like buying an out of the money option with oe day to expiration. Luckily I hate gambling.
 A cash secured Put option contract is really just making an offer to buy something you like at a price that you like, lower than where it is right now..and get a little cash premium while you wait.
 Same thing with selling a covered call. If you want to sellout of something at a higher price, write a call option and get paid to wait.

[champshire]

I have been practicing the wheel strategy myself here recently. Nice to get 10% return on cash secured puts. I can't get 10% in the bank, so I may as well sell a cash secured put and make some money on my cash. If I get assigned, sell a covered call until the shares get called away. Rinse and repeat. It's been working well for the past couple months.

[mkd]

My retirement accounts cash position is going to go into SWVXX which is money market fund from Schwab, paying almost 5%. From what I heard you can still write cash secured puts on that balance 💪