Enrich my ETF strategy

[Sauron]

Have you tried trading options? Options are the most powerful tool for a trader as long as you use the right strategies.

 

[JimBeam]

jkl197 said:
did you consider p2p lending?
Click to expand...

Most (if not all) of these are mafia-style organisations enslaving the poorest, economically illiterate and desperate people.

Here's a documentary about it:

Also, the risk there is huge.
These platforms come and go and then they go - they take your money with them 🙂
Getting 8 or 9% with them is almost the same as S&P500 average return with basically no risk. So why risk it?

 

[jkl197]

Sauron said:
Have you tried trading options? Options are the most powerful tool for a trader as long as you use the right strategies.
Click to expand...

Options trading in reality is not as easy as it sounds for the average person and there is no "right strategy" that always works, one always has to adapt to current market conditions.
Stupid example: there could be times when is better to sell a straddle or a strangle and other times when it is better to make it "iron" (cover it with more otm strikes on both legs).
Do you have long experience with options? Did you try to replicate (or at least backtest) what they do with TSLY for example?
Or, as an alternative idea, did you evaluate a delta neutral strategy on TSLA directly (e.g. short stock and buy calls)?

 

[jkl197]

JimBeam said:
Most (if not all) of these are mafia-style organisations enslaving the poorest, economically illiterate and desperate people.

Here's a documentary about it:

Also, the risk there is huge.
These platforms come and go and then they go - they take your money with them 🙂
Getting 8 or 9% with them is almost the same as S&P500 average return with basically no risk. So why risk it?
Click to expand...

when I said p2p lending I did not have in mind microfinance, quite the contrary; there are many reputable platforms for lending to companies and other variations, see for example:

https://p2pplatforms.com/
https://www.proplend.com/invest/

 

[JimBeam]

I'm aware of most of these platforms (Mintos, PeerBerry, Robocash, former LendingClub etc).
Some are focused on persons, some on real estate (like Estateguru) some on companies etc.

Two things connects most of these platforms: Risk and Regulation.
People or companies that need money and couldn't get a loan at a bank - they go to these platforms and lend at a much higher interest (and unfavorable conditions in general).
Higher interest = higher risk.

Also, many of these platforms are not regulated or they move their businesses to countries where with less (or no) regulation.
So it's all good while it lasts - but once the s**t hits the fan - the investor could lose everything.
If you just search you'll find many of dead platforms where investors lost millions.

Even the website you shared has this disclaimer even above its logo:
"Don't invest unless you're prepared to lose money. This is a high risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong."

And then it says
"Earn 5-12% p.a.*
Income is taxable. Reinvest monthly income or withdraw cash. *Return after fees, before bad debt. Not covered by FSCS - capital at risk"
So you might earn 5-12% per year and then you need to take from that: tax and bad debt that's not insured. LOL

Last edited: Nov 29, 2023

 

[Sauron]

jkl197 said:
Options trading in reality is not as easy as it sounds for the average person and there is no "right strategy" that always works, one always has to adapt to current market conditions.
Stupid example: there could be times when is better to sell a straddle or a strangle and other times when it is better to make it "iron" (cover it with more otm strikes on both legs).
Do you have long experience with options? Did you try to replicate (or at least backtest) what they do with TSLY for example?
Or, as an alternative idea, did you evaluate a delta neutral strategy on TSLA directly (e.g. short stock and buy calls)?
Click to expand...

I dont own TSLY, i dont think it will last for long in the markets due to their strategy, I run the wheel on some ETFs with high liquidity and volatility(SOXL,KWEW,TQQQ, YINN, FAS,etc) also have an strategy for earnings annuncements that I run on certain companies every week. I dont do any 0DTE trades, I dont want to spend the whole day in front of my screen wating to see if my Iron Condor or Iron Butterfly has hit my target, I like something more relax. I make a 25-30% annual return and that is more than enough for me to have a comfortable life.
Trading options has a learning curve but you can find a lot of information for free online.

 

[uranium]

JimBeam said:
Most (if not all) of these are mafia-style organisations enslaving the poorest, economically illiterate and desperate people.

Here's a documentary about it:

Also, the risk there is huge.
These platforms come and go and then they go - they take your money with them 🙂
Getting 8 or 9% with them is almost the same as S&P500 average return with basically no risk. So why risk it?
Click to expand...

I remember I read your post earlier about a great investment strategy:
35% Voo
35% tesla
35% btc
But I prefer 50% Voo, 50% btc.
It is like getting regular income and riding the wave at same time 😉

 

[JimBeam]

Well, it all depends on your risk tolerance.
In general having just couple % of your portfolio in BTC improves a lot your overall results.

Also, so far this year (YTD) many of the top SP500 companies did really well:
Apple $AAPL +47.2%
Microsoft $MSFT +56.2%
Google $GOOGL +49.5%
Amazon $AMZN +75%
Nvidia $NVDA +220%
Facebook $META +169.9%
Berkshire $BRK.B +15.6%
Tesla $TSLA +93.9%
Eli Lilly $LLY +59.6%
Visa $V +23.4%

So it's really up to an investor.
90% VOO + 10% BTC is also great.