Have you done anything regarding "The Options Wheel" for generating income in retirement? Like if someone had let's say $200,000 they devoted to this strategy. So let's say they purchased $100,000 worth of SPY and kept $100,000 in cash. They sell covered calls on their SPY shares every month and sell cash-secured puts on SPY as well.
If SPY rises ITM of their calls, their CSP position will be profitable. If SPY drops ITM of their puts, their CC will be profitable.
And it's not too big a deal if shares get called away or assigned as you're always just selling calls and puts.
You could generate let's say probably around 1.5% to 2% every single month.
Let's say you JUST used this strategy to generate retirement income, while stuffing all the rest of your money into index funds and not even touching them.
Curious what that would look like. You could generate retirement income in a dynamic way, regardless of market fluctuations, while never even withdrawing from your long-term positions.
Hi Homan, we have not looked into this, but I have read some articles about it many years ago. However, there are no free lunches. Thanks for the input and idea, I'll look into this a bit later.
Have you done anything regarding "The Options Wheel" for generating income in retirement? Like if someone had let's say $200,000 they devoted to this strategy. So let's say they purchased $100,000 worth of SPY and kept $100,000 in cash. They sell covered calls on their SPY shares every month and sell cash-secured puts on SPY as well.
If SPY rises ITM of their calls, their CSP position will be profitable. If SPY drops ITM of their puts, their CC will be profitable.
And it's not too big a deal if shares get called away or assigned as you're always just selling calls and puts.
You could generate let's say probably around 1.5% to 2% every single month.
Let's say you JUST used this strategy to generate retirement income, while stuffing all the rest of your money into index funds and not even touching them.
Curious what that would look like. You could generate retirement income in a dynamic way, regardless of market fluctuations, while never even withdrawing from your long-term positions.
Hi Homan, we have not looked into this, but I have read some articles about it many years ago. However, there are no free lunches. Thanks for the input and idea, I'll look into this a bit later.