u/davicchi

Disclaimer: This is for research purposes.

The strategy is to use leverage to free up more capital for puts & dry powder. Write weekly CSPs on LETFs by selling .06-.10 delta puts. From the weekly profits, DCA shares into a small leveraged position of either LEAPS/LETFs. Eventually, sell covered calls on the LETFs, calling them away when we need to size down.

I rebalanced the retirement account to owning TQQQ only, my other brokerage account will be holding SOXL & RAM. My biggest issue right now is figuring out how big of a portion should I allocate to a leveraged position… Selling calls is starting to underperform the underlying as expected and it seems like a ~90% cash & ~10% leveraged is too conservative. Any insight would be helpful.

approx.
92.3% $USD
7.7% TQQQ

Disclaimer: This is for research purposes.
Strategy: Use leverage to free up capital for puts. Sell weekly csp/strangles on a leveraged SOXX by writing far-otm SOXL/SOXS puts, depending on personal discretion. From weekly profits, DCA shares of TQQQ/SOXL to poorly mimic LEAPS. Then, sell otm covered calls on TQQQ/SOXL to poorly mimic PMCC & call away shares when over-weighted.

Because the portfolio needs a way to pivot into a bull market, I bought 7 shares of TQQQ & 2 shares of SOXL from the profits made since wheeling. Market seems stable until next fed decision. Writing puts will underperform the underlying over time, so I’ll need to DCA in & out of shares when my risk & sizing makes it hard to sleep. I always need my beauty sleep.

approx.
93.1% $USD
6.9% LETFs (4.5% TQQQ, 2.4% SOXL)

Closed last week’s SOXS Put, wrote SOXL Put for directional long bet/long-term assignment if Nasdaq dips. Nasdaq proceeds to dip all week causing near assignment. Wrote SOXL Put around $120 at-the-time for $76 strike, SOXL needs to dip around 36% by end of week for assignment. SOXL dips lowest at 28% before rebounding +20% Thursday on good volume and momentum. Thursday, closed out SOXS Put, bought 100 TQQQ and wrote TQQQ covered call for Friday. If Nasdaq kept momentum on Friday, then potentially hold TQQQ little longer. Come Friday, Nasdaq lost night momentum, so closed TQQQ covered call and sold TQQQ to avoid risk.

For next week, unsure of direction so made pseudo-strangle by writing SOXL Put and SOXS Put. If Nasdaq dips, self-assign shares. If Nasdaq does well, continue writing pseudo-strangle but with higher deltas on the long leg. Self-assigning shares currently too risky for account.