To The Moon

having a extra income from qyld 1% per month of interest

On top of buying bit by bit 

I am also selling both puts and calls on it $NASDAQ 100 Covered Call ETF(QYLD)$$Nasdaq 100 ETF(QQQ)$$SPDR Portfolio S&P 500 High Dividend ETF(SPYD)$

 Some people see selling covered calls and cash secured puts as free money, but that is not the case.

Before we talk about risks, I’ll briefly explain the covered call and cash secured put.

For a covered call, you own 100 shares of a certain stock. You decide you have no problem selling it at a certain strike price. You then sell a covered call with that strike price and earn a premium.

For a cash secured put, you put enough money down to buy 100 shares at the price you want to buy it at. Rather than putting down enough shares, you put down enough money to buy 100 shares at your set strike price.

Let’s say XYZ stock trades for $100 per share and you have no problem selling it at $105/share. Let’s say you sell an option that expires in a week and earn $50 in premium.

You get that $50 premium regardless of whether the stock exceeds the strike price or not. If the stock stays under $105/share, you get to keep the shares. However, if the stock goes above $105/share, you are forced to sell your 100 shares.

For some people, this isn’t a big issue because they had no problem selling at $105/share when they set the strike price. However, if the stock surges to $120/share, you’ll wish you didn’t have to sell at $105/share.

To break even and buy back your 100 shares, you’d have to wait until the stock went back down to $105.50 (a $50 premium is a $0.50/share premium) or lower

Trade safe and hut $Nasdaq 100 ETF(QQQ)$