Hey y'all after seeing this and this post I wanted to go over my returns employing this strategy for the past year. I've mostly employed the strategy on broad market ETF (VTI, XLK, XLC) but also on a few select stocks that I thought were good values (JPM my best performer so far).
However, these excess returns are NOT without risk. As some have mentioned in the aforementioned posts the issue is, this strategy ties up A LOT of capital for ATM options (but not 100% as some people have suggested). If you plan on using this strategy it'd be wise to go slightly deeper ITM with the options and put up the extra collateral. Not only will the account have a lesser chance of blowing up but you'll also be able to sleep at night because you're account hasn't already blown up :)
Alright well without further ado here's a performance report from my broker (IBKR) for my returns over the past year with this strategy:https://imgur.com/a/WSZyAtN
All-in-all it's a fine strategy to employ if you're young and can afford the risk and capital reqs though i'd caution that it'd be more efficient in a non-taxable account if you don't plan to exercise on expiry
Submitted July 04, 2021 at 11:34AM by superepicunicornturd https://ift.tt/3ylKYZV
