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RE: Stop Trading Crypto!! You’re (probably) no good at it…
Sounds good! I don’t have time or the technical background to look into and understand these smaller stocks. I tend to buy big established companies that will grow over time and pay me to hold them.
To boost that, I sell put options in a few companies or indices on a monthly basis - this generates an additional approx 20% per year on the value of my whole portfolio
At the moment I am taking a bit of that free income and diversifying it into some crypto
Cheers
Sounds like you have a very solid actual plan. I have sold puts before as well, can be great especially on shares you own that you may sell anyways, no risk at all then.
Yeah, I have been doing it for quite a while now
I keep my portfolio approx 80% in high high quality stocks and the rest in cash
Each month I sell as many puts as I can, using margin on the entire portfolio, but leaving approx 20% on the table in case there is a major event or buying opportunity
I only sell puts in those same highest quality companies, or indices, and I do it as a credit spread to limit the downside - so even in an Enron situation my exposure is significantly reduced
Price stays flat or goes up, the put expires worthless and I keep the option premium
Price goes down a bit, depending on my strike price I am probably still ok and the put expires worthless, I keep the premium
Price goes down a lot I have a whole bunch of rescue options, plus a stock that I like has just got a lot cheaper so I can buy more
I wish I had started 20 years ago...