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re: Options Trading Thread

Posted on 5/15/24 at 11:57 pm to
Posted by BCreed1
Alabama
Member since Jan 2024
1611 posts
Posted on 5/15/24 at 11:57 pm to
quote:

That’s not how SQQQ works. You should look into the “dividend” before going that route.



I have, I know it fluctuates. The point is to hedge while selling calls and collecting a dividend on it.

Here is the history of it LINK
Posted by slackster
Houston
Member since Mar 2009
85487 posts
Posted on 5/16/24 at 1:43 am to
Fair enough.

Purchasing/selling options on top of a 3x leveraged QQQ ETF just inherently seems like a bad idea to me, but if you understand how SQQQ works, good luck.

ETA - it feels like the financial equivalent of a martingale system.
This post was edited on 5/16/24 at 1:49 am
Posted by LSUtoOmaha
Nashville
Member since Apr 2004
26590 posts
Posted on 5/16/24 at 9:55 am to
Selling covered calls on SQQ is not going to make up for the brutal decay factor inherent in a 3x inverse leveraged ETF.
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