/biz/ - Business & Finance

>>20479131
Write weekly put/call spreads on relatively stable tech stocks that still have somewhat of a decent volatility to be able to make 3-8% weekly returns without requiring 100 shares of something or $50k in capital.

The only downside here is if the market swings 10% via something like COVID against the direction you bet in, you stand to lose the entire bet. Of course you can hedge against this, but that requires more capital.

Make safe plays like this one maybe? Apple hasn't had a 1-week drop of more than 10% unless it's been something like the 2008 crisis or 2020 nothingburger crisis. And when stuff like DOES happen, you can always close it out before the actual expiration date.

Even a 1.5% return per week making plays like this (this assumes you make a ton of losing trades and close them out early), you still go from $2000 to $4337 in a year. Yes, one bad trade can blow you out - which is why you make multiple plays like this across different sectors (ie. Tech, Big Defense, etc) on large liquidity stocks.

I mean, it's gotten me 4%~ a week even through the March dip so yeah. If you like making safe plays but still want to make 100%+ a year and dab on bonds and boomerfolios, do this.