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re: Options Trading Thread

Posted on 5/16/24 at 9:55 am to
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.
Posted by Jag_Warrior
Virginia
Member since May 2015
4181 posts
Posted on 5/16/24 at 10:09 am to
quote:

Selling covered calls on SQQ is not going to make up for the brutal decay factor inherent in a 3x inverse leveraged ETF.


Not a product or strategy that I’ve ever looked into - mainly because of contango and the risk inherent in being long leveraged products.

So just a question here: have any of you looked at call credit spreads (being defined risk) or calendar strategies, rather than anything that involves being long the underlying?
Posted by BCreed1
Alabama
Member since Jan 2024
1611 posts
Posted on 5/16/24 at 11:39 am to
quote:

Selling covered calls on SQQ is not going to make up for the brutal decay factor inherent in a 3x inverse leveraged ETF.



Thank you for the response. Can I talk you into an example of what you are talking about.


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