MisterYu

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  • in reply to: Logical Invest team’s own personal allocations? #79390
    MisterYu
    Participant

    @Frank, when selling the puts, how do you determine the sizing of the position? For instance, if the current strategy allocation says you need to have $30K in SPY, how many of which puts would you sell? Do you go by price or by buying power reduction or some other metric?

    Current 70 delta puts for aug, sep and oct go for $17, $25 and $29, respectively…

    I’m really asking to implement the replacement for the lost 3x ETFs with options. As a quick fix for this month I am doing it with long ATM calls in GLD, but obviously I don’t want to be buying premium and want to be selling it… Just not 100% sure how to calculate the sizes right on the put side.

    Thank you.

    MisterYu
    Participant

    If one wanted to stay invested, would it make sense to rebalance early after such drastic moves? If so, what would be a reasonable criteria for the rebalance?

    MisterYu
    Participant

    I was wondering, since essentially we are doing buy and hold on these securities, albeit with rebalancing, would adding short term covered call writing improve the results and soften the risk a little? Is there a reason not to do it?

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