Discussion in 'Stock Market' started by MarathonMike, Sep 6, 2018.
If you are looking for a place to park some cash this is the best CD I've seen in awhile FYI
The short-term T-Bills are paying a reasonable return. Here are the results of this week's auction:
From Institutional - Announcements, Data & Results
I have four tranches invested in the 4-Week, one of which matures and is reinvested each week.
Two hundred sixty five dollars per $10,000 for a year.
Two hundred sixty five dollars divided by 12 months equals $22 per month divided by 4.3 weeks is five dollars per week. It's like a free cup of coffee and a bagel per week.
Not bad. But not great either.
/----/ or buy 100 shares of Netflix and sell a covered call expiring Dec 18 2018 at the money and get $3,050. A 10% return in 3 months. It's so simple to do
Cool 10% guaranteed return in buying stocks and options! I didn't know that was possible.
/---/ If Netflix is below $365 on 12/18 you keep the $3,000 and your stock. If it's over $365 then you keep the $3,000 and the market maker buys your shares at $365 each even if the stock is at $400. That's their incentive. It's like real estate's rent with the option to buy. I made $115,000 YTD doing this. Most stocks and ETFs have options. Just google how to write covered calls.
Interesting. I've done well trading stocks, never shorting and never doing options but it would be interesting to try it. Prolly not with $40K.
No options strategy is without risk. That's what I was referring to. I agree the example you give has a good probability of making money. But Netflix could be way lower on 12/18 also.
/—-/ I never said it was without risk but if you own stocks you can write calls way out of the money. If the stock falls just buy the option back.
/——: And there are $10 stocks with options so you’re investing $10K for 100 shares. I’m not trying to talk you into anything but there are better options than CDs paying less than the rate of inflation
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