Semi-Passive Returns w/ Low Volatility and Drawdown (SP500)

I’m going to begin implementing and tracking a discretionary but mostly passive investment strategy using covered calls and the SP500.

I will be move between 0,1, 2, 3x size in the SP500 (SPY or mini contract) and use covered calls at all times in equal proportion.

I will use various analyses and experience to increase size during pullbacks in bull markets.  At a time like right now on the first vertical development in the markets since 12-18-2013 I will stay in cash (zero, no covered calls).

Instead of using monthly options I will use weekly options in SPY 1/2% to 3% away from market price depending on volatility and where the market is.  When I decide the market is oversold I will sell option strikes  further out (3%) in order to capture more price movement.

This is not to be a trading strategy but a passive strategy with a decent amount of discretion in order to increase absolute return and in all likelihood reduce worst drawdown.


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