QQQ Calls - IRA
First time caller, long time listener....
There are a lot of smart people in this sub, so I'm looking for some feedback/advice. Towards the end of the last year, I started using a QQQ covered call strategy in my IRA portfolio to generate cash flows, in the hopes of eventually leaving the corporate world. It has been very successful at times, but my assignments and opportunity cost (capped upside) have been significant this summer.
I recently ladder my 9 contracts split evenly between 15/20/25 delta with 7-10DTE. I roll at >70%gains. Previously, I did 30/35/40 delta 7-10DTE, but was getting large assignments during some weekly rips. I get it, I know that's the whole point that I'm getting short term gains at the expense of long term appreciation, but it there a better sweet spot to ladder? I'm not adverse to assignment because this is a non-taxable account so capital gains are currently not the issue.
For context, I split my overall IRA into 70% total market and 30% QQQ CC. My goal is to have the growth in my 70% sleeve offset or absorb any losses (NAV erosion) that I'm taking in the 30% CC sleeve because I value income over growth.
Is a 30% return on the CC sleeve a reasonable return? Right now, I'm tracking about 15% run rate.
Thanks in advance!