Week 33 -Aug 15 Investment Moves

solving-chaos(61)

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Week 33 -Aug 15 Investment Moves

Current US market conditions as of noon (EST)
Aug 15 option trades @ 11 am (EST)
High Yield ETF Concept testing - JEPI
High Yield ETF Concept testing - YieldMax/Defiance ETF

Current US market conditions as of noon (EST)

This week is looking pretty good compared with last week's RED Monday.

Nothing has changed in my investment approach.

Long Stocks (via 401K/403b plans, IRA, Roth IRA, and ESPP)
Using Options for extra returns (Covered call on the long stock holding).
Using Options for extra returns (Put Credit Spreads/or CSP on some positions with Covered calls).
DGI or reinvest some dividends. For other dividend holdings, I'm reducing the position size by selling stock after the dividend is reinvested into my account. For Example, if I have 910 shares of Ford, I will get about 10 shares from the dividend reinvestment each quarter. I might sell 15 shares each time (once a quarter) to slowly reduce the holding from 910 shares --> to 800 shares. My current plan is to add more QQQM for now.

Aug 15 option trades @ 11 am (EST)

Here are my option/ETF trades for today:

Summary of the moves:

Buy High Yield ETF - to test against JEPI (Read more about it in this post).
Rolled an SKX-covered call (ITM) up and out that cost me $73 out of pocket. I gain $250 if SKX stays above $60 (I limited my upside to $60/share from $57.50/share).
Rolled Cash Secure Put (OTM) for $12 ($24-12) each. I used the shorter-dated PUT to earn some income and help offset the cost of the SKX-covered call.
Rolled RIOT covered call Up and out for $7 each (4x contracts). The prior option trade worked.
Rolled RIOT covered call Up and out for $4 each (3x contracts). The prior option trade worked.
Rolled MRVL covered call up and out that cost me $64 out of pocket. I gain $250 if MRVL stays above $67.50. (I limited my upside to $67.50/share from $65/share).
Rolled MRVL Cash Secure Put (OTM) from $14 each. I used the shorter-dated PUT to earn some income to help offset the cost of the MRVL-covered call.
Rolled LFUS covered call up and out for $191. I tried to do this trade once a quarter for LFUS.
Rolled F cash secured put down that cost me $30 each. I need to do this since I have covered calls that are OTM and I need to use that income from the covered call side to help pay for this type of adjustment on the losing side of the trade.
Rolled BMY put credit spread to next week and lowered the strike price for $5 each. This option will most likely expire worthless in my favor tomorrow and I just wanted to position my trade for next week.
Rolled V put credit spread to add one more week and increased the strike price for $11 premium each.

High Yield ETF Concept testing

I started as a DRiP investor when my commission was over $15 per trade. Since the cost of trading is now zero (or mostly zero), I have moved away from using dividend stock to lower the cost of getting the share. In turn, I have moved into DGI and low-cost ETF investing.

One area that I have been testing is the High-Yield ETF that can be used in retirement for INCOME. For the most part, I still think most people can do fine using the S&P500 or QQQ as their low-cost Index Fund.

Last year (2023), I started a small position at JEPI. I have over 15 years before retirement, and I wanted to track how well the ETF performs during various market cycles.

By adding that holding, I can see the monthly dividend. All this data can be copied into an Excel sheet and can be used to track the monthly payment over the test period. Right now, I only have data for between Feb 2023 to Aug 2024.

High Yield ETF Concept testing - YieldMax/Defiance ETF

There was a recent news story about a REDDIT user who makes $4K a month in dividends using 150K in capital.

https://finance.yahoo.com/news/dividend-investor-earns-4000-per-210013129.html

For me to test, I don't need to spend $150K or even $10K to do the test. I just added 10 shares of different holdings and then I can track the monthly dividend over 2 years, 5 year,s or 10 years and see what happens. I can also then compare that data vs the JEPI data over the same OVERLAPPING periods (starting in Sept 2024).