So my strategies are much less effective now due to higher rates. I used to do wheels on S&P 500 with 3X leverage and if I got assigned it was no big deal because it was very low interest. Mostly I'd make about $450/wk just selling puts that expire every other day. Well that's obviously not enough to pay the bills so I had to draw down my account until it was below the $25k requirement for pattern day trading. I think I'm sitting at about $9k now but my wife got a job that pays the bills so I can finally turn this around and grow the account without worrying about selling at a loss because I can wait it out.
So I can't run wheels 3X/wk until I get $25k. SPY is $495. 1 put would cost 495*100=$49,500. On margin I need 30% of that or $14,850. Now, I could sell the model A for $12k+ and get there but if I can get there another way I'd prefer that.
Lately I've just been buying 1 month t-bills to slightly beat inflation. Should I go learn forex or something? How do I get back to where I was before my life got fucked? Nobody will even call me for an interview and it's been like this for years.
MrSupreme 1w ago
Forex or Nasdaq are good ideas,there is a learning curve and high risk at the beginning.It just takes a lot of practice and analysis expertise to make bank. Sell some stuff on Amazon or something.
whytehorse2021 1w ago
Yeah forex was really boring when rates were 0% but now it's interesting. It's funny how S&P500 was the biggest play during this 10 year bull run and now it's currency. I wonder what will be the big play when we hit a bear run.
Maturin_nj 1w ago
Make sure you fully understand the risks of selling writing naked options. By reading this post imnot sure you do. This is a strategy with limited small profits and unlimited risk. It's appealing becuase it feels good and can be consistent profitability until it isn't. When the position goes against you do you get out, or take some risk off or do just say let's see what happens and let the markets come back or bank on time expiration.
One day if you do that the market will go into a major trend, it won't come back and youllbein misery. It's just a matter of time.
Google guy who sold options that worked with George soros. . Helived in CT and name begins with "S" I forgot hisname. Google the guy who bought oilfutures for 1 penny per barrel.
You are in a very rough racket. What did you used to do that you can't get an interview. I'm a retired lawyer and used to trade in the NY futures open outcry pits for a bit when I was a young ambitious up and Comer. Now I don't give a fuck and buy Cds, lol.
whytehorse2021 1w ago
Well the whole point of wheel strategy is you pick a stock you don't mind owning so worst case scenario I get stuck with S&P 500 during a downturn and have to wait for it to recover or get bailed out by gov't. Meanwhile you sell covered calls on the assigned stocks while paying interest on margin. Interest is currently 3.5% so S&P+covered calls beats that plus maybe beats inflation as well. 7% total currently. So not exactly a losing strategy but not as profitable as before when interest and inflation were low. This is why I'm thinking of switching to forex...
As for trends, wheel is agnostic to bear vs bull. It makes money on both. It relies on volatility for profits. I use s&P 500 because it's volatile in the 1-2% range so options pay really good there. I use a modified strategy where I can back out of a put before it gets assigned if I see a position go against me and just take a minor loss. I also hit the options right when their theta decay is about to peak so it's quick money.
I lost money on oil futures. Currency arbitrage too. It turns out that gov't/OPEC can come in and set the market however they want. Fundamentals be damned. That's why I am unsure about forex.
I don't know what I did that I can't get an interview. I was self-employed for about 10 yrs and worked overseas 4yrs before that. I'm an older white guy so I'm automatically discriminated against in most jobs.
Lone_Ranger 1 1w ago
I don't feel safe.
whytehorse2021 1w ago
I think it has to do with pay. Nobody wants to pay an older experienced guy with a bunch of degrees when they can get a fresh out of college starving student.
Lone_Ranger 1 1w ago
thats the benign interpretation.
In relality, in a sane market, in a level playing filed, salary doens't matter. What matters is value delivered in relation to cost. Value in excess of cost.
But the modern corporation is now a marxist vehicle for social justice issues. Profit is never discussed. We now have D&I officers on $750k simply hired to destroy value. Value creation is seen as not only unimportant, but inherently evil.
whytehorse2021 1w ago
Yeah there's that too plus Boomers have been moving the goalposts for decades to protect their positions. "bachelor's required, masters preferred".
shockreserve 5d ago
Technically its not boomers moving golaposts. Its people paying for worthless degrees. Education cant be clear factor in employing people since almost everyone is higher ed.
I hear, Age is a problem.
All this extra diversity forms are likely not created for diversity but to get rid of unwanted people. Now companies of all sizes use that knowledge to their advantage.
Experience wont matter WHERE PEople are required to follow SOP.