u/ActuatorOk2735

Anyone who has been trading covered calls or cash secured puts in Belgium?

What’s your strategy and how have you experienced this new way of investing?

EDIT:

Indeed long term investing in a world ETF would return better returns.

I’m mainly talking about stocks you actually want to own, whether that’s to diversify, have some fun investing, or just try options. I’ve been doing this for almost a year now and really enjoy it.

Compared to distributing ETF’s, high dividend stocks/REITs, or just holding stocks long term, I mostly use short-term (1/2 months) CSP’s to wait for stocks to reach my buy price, and CC’s once I’m assigned (basically a wheel strategy). Since my portfolio is only around €18k, be able to continue writing put options.

This year I’ve only really done this with WDP, a fairly low-volatility REIT, and I’ve collected almost €800 in premiums since January while waiting for it to hit my buy price. And for more than half the time, I had less than €10k tied up as collateral for the options.

So wondering how it can be this profitable?

Anyone who has been trading covered calls or cash secured puts in Belgium?

What’s your strategy and how have you experienced this new way of investing?