Maximizing Income with SPYG: My Cash-Secured Put and Covered Call Strategy
I recently executed a trade involving the SPDR Portfolio S&P 500 Growth ETF (SPYG), which is currently trading at $88. My strategy started with selling a cash-secured put at $85, which was later exercised early. This resulted in me acquiring 100 shares of SPYG at $85 per share.
At one point, SPYG dropped as low as $80 before rebounding to $82.20. Due to this volatility, my unrealized loss was minimal, around $2.50 per share. However, instead of panicking, I focused on generating consistent monthly income.
To maximize my returns, I am now selling a covered call at a $90 strike price, earning a $0.33 premium per share. This effectively provides me with a 0.4% monthly return, while also allowing for potential capital appreciation if SPYG continues to rise.
Additionally, I received a $0.33 dividend, further boosting my overall returns. By combining cash-secured puts, covered calls, and dividends, I create a steady income stream while still benefiting from long-term market growth. This strategy ensures that I profit whether the stock remains stable, increases, or even experiences minor declines.
Conclusion
Selling cash-secured puts and covered calls is a great way to generate passive income while holding shares of quality ETFs like SPYG. Even in market downturns, this approach minimizes risk and provides multiple avenues for profit.@TigerStars @MillionaireTiger @Daily_Discussion @TigerStars @TigerTradingNotes$SPDR Portfolio S&P 500 Growth ETF(SPYG)$ $SPDR Portfolio S&P 500 Growth ETF(SPYG)$
| Side | Price | Filled | Realized P&L |
|---|---|---|
| Buy Open | 85.00 100 | -- Closed |
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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