BOXX
Alpha Architect 1-3 Month Box ETF
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BOXX - Fixed Income Emulator - No Withholding Taxes?
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Anyone know why BOXX is down a (relatively) large amount? I occassionally see BOXX go down \~0.01% but this morning it's been hovering between \~0.07%-0.08% down. Last time this happened it was due to a small dividend but as far as my googling has gone, no such dividend has been announced. Curious if anyone has an explanation on would make drop like this.
Can you contribute the money and invest instead into a money market account or a fund like BOXX (sells box spreads) - it makes 4.++% annually and every share goes up 1-2 cent every day. Assuming $40k You would make ~$7 per day ($200 a month/$800 in four months) - even just investing it in Treasury fund like SGOV or similar? I get wanting to wait to invest in sp500 or similar......but there's no reason to wait to invest the money into the sep. IRA
This is probably the most important trading moment of the year so far. Basically everything is at the "Hold the Line" valuation. SPY at 650, Google at 300, AMZN at 200, AAPL at 250. If it can just go below 650 I think there'd be a strong chance to buy. I went all in last year on SPYU when SPY was at like 480 then sold out at 630. I've been in BOXX since last July. It's almost time...I'd love to see the VIX pop over 30 again. It's all I need, I won't be greedy beyond that....
What is the question:? Doing it on margin is putting up no collateral. I do this all the time and park funds in BOXX, It earns around 4%.
One thing that helps with BOXX is that it is all unrealized gain till you sell your shares. That means lower volume from whales constantly buying and selling as they do for example on dividend plays. There are at least 11 Alpha Architect ETF's and BOXX has the most stable history. Some of my high yield banks recently sent me new "Term agreements" that shared a change of language concerning fund transfer hold times and daily transfer limit reductions that lead me to believe they are tightening their reserve management. Last week we heard some of this explained for the "private credit" issue various banks are looking at. OCC has over $200 billion to mitigate a black swan event and the underlying trades usually show distress before their expiry dates so there should be warning?
Makes sense. If it’s strictly BTD money, I’m leaning SGOV/T-bills + a simple CD ladder too. Any reason you’d keep any in BOXX at all vs just more SGOV? And what % would you keep liquid vs locked in CDs?
Your cash allocation strategy is solid for building a "crash-protection" moat while still earning a competitive yield on the fed funds rate. Your mix of SPAXX for instant liquidity and SGOV/BOXX for short-term Treasuries captures high efficiency without the volatility of your tech-heavy brokerage. BOXX is actually outperforming SGOV because the box spread structure captures time value more efficiently, though it is slightly more complex. You can use AI tools like trylattice because it is perfect for monitoring this situations since you can sync these events to your calendar and get alerts if BOXX starts to reprice lower as rates drop. Having 6-12 months of expenses in these stable assets is a game changer for staying disciplined during market drawdowns.
Use SPRXX instead of SPAXX. Slightly better yield. BOXX and SGOV are fine though. Also, just max the IRA asap. You can leave it in the settlement fund if you want, but no reason to wait to max if you're just going to have it sit in savings.
Honestly your setup already looks solid for ‘dry powder’ SPAXX + SGOV is basically cash/short Treasuries. Only thing I’d watch is BOXX (tax stuff + complexity) unless you really need it. Big question: is this an emergency fund (6–12 months), or just ‘buy the dip’ money? If it’s buy the dip, I’d keep it simple in SGOV/T bills/CD ladder and call it a day.
Solid setup overall. SGOV and BOXX are smart plays for capital preservation right now. One thing worth considering given how tech-heavy your brokerage already is — a small slice of your safe money (maybe 10-15%) into precious metals ETFs could add some diversification that doesn't move in lockstep with your stocks. IAU or PHYS (Sprott Physical Gold Trust) for gold, and PSLV (Sprott Physical Silver Trust) if you want a higher upside allocation with more volatility. They've been doing their job as a macro hedge lately and tend to move independently of equities. Not saying go heavy, just that having some exposure alongside your T-bill position isn't a bad idea when your main portfolio is basically a Mag7 bet.
I'm going with SHY + BOXX but SGOV has it's upsides. Esp in IRA/roth/401
Yes, if you hold it that long. But if you’re really tax conscious, get BOXX. They use options to get a synthetic treasury yield and don’t pay a dividend. After a year, it’s 100% characterized as long term capital gains and tax-deferred.
Should have just bought the BOXX etf or wrote your own box spreads, for superior tax treatment.
Volatility risk is muted in BOXX’s structure, but counterparty and execution risks exist. Black swan events are always possible, but they’re rare and generally don’t affect low-leverage, structurally simple strategies as much as highly speculative trades.
Right, many traditional MMFs (like VUSXX) are state-tax free, *but* not Federal, and the dividends aren't qualified (so taxed nearly 39% for me) and are distributed every year. BOXX has big advantaged in both categories: classified as a LTCG *and* only realizes those gains when sold. Sure, I have to pay CA tax, but less than I do for VUSXX (assuming I didn't sell in a down year where taxes where even less, versus having a constant tax drag every year).
Thanks I didn't know about BOXX, I picked FDLXX as fidelity treats it as cash and its tax advantaged in CA. |https://www.taxnotes.com/featured-analysis/tax-trap-inside-boxx/2024/03/08/7j8x0 seems like BOXX may get slapped at some point... but its been more than a year and the SEC is often asleep at the helm. |Also, you should probably advocate for "X months of expenses, depending on your income situation" I am also not a financial advisor or analyst. Given the income distribution in America and Reddit, I'd wager most ppl are still working on the first 3 items. If you are a person who already has hit all 3 of those milestones you probably have a pretty good idea of what to do next. After you you have some cash, keep investing and don't stop. Be like Smaug and hoard that shit.
> Brokerage: 30k in FDLXX That sounds like a pretty big tax drag, depending on your bracket and state. I'm in a very high bracket, so do BOXX to (a) access LTCG; (b) choose when I realize that gain [likely in a lower income year because it's an eFund]. Also, you should probably advocate for "X months of expenses, depending on your income situation" (eg. how long would it take you to replace your income if you lose your job? using whichever extreme you want; my field is getting hammered right now, so I do 12mo).
I have 3 months in BOXX, 3 months in SWVXX as a base lower limit. End of the month anything over that 1.5 months worth of operations expenses gets distributed evenly, 1/4 additional savings for fun, 1/4 to spend on fun hobbies, 1/4 goes to VXUS, 1/4 goes to SWVXX. This continues to grow the stash of cash for funding projects, upgraded equipment, retirement, trips, hobbies with out disrupting my retirement and safety net. Each week I transfer more money than necessary as a base savings for retirement funding, taxes, long term operational expenses, 1/3 of known expenses over 3 years, like new hardware and software. It work it like this fill SWVXX until funding is secured for next years taxes/retirement/operations. Then fund BOXX for 10k or hit next savings level. Then VXUS, long ass term non retirement investment. Again, I have already maxed my contributions for 2026. My hot take, grow your system to work for you, grow your savings to hit a place where you no longer worry, if you have 10k and worry then add, if you hit 9 months of average expenses, and still worry then keep savings. There is no magic number. I have not needed my emergency fund, or back up for 10 years, I am blessed I do everything I can to not touch it, I know I can make moves in 3 - 6 months average expenses.
BOXX? That seems built to basically be tax efficient by pricing dividends in, rather than paying them out.
You’re asking two questions: 1. How much should I keep for an emergency fund (obviously an absolute number that’s realtive to your expenses). 2. How much should I keep on the sidelines in case of a crash to ‘buy the dip’. For #1, I keep 12mo of expenses in BOXX because my HHI comes from very unstable revenue streams and I’m in high brackets. For #2, that entirely depends on your philosphy and, critically, your time horizon. If long-term, I think most would argue that you should always be invested (no cash) unless you have a very strong driving thesis that you could defend (eg. Buffet and BH’s current cash hoard). *How* you distribute those investments might be the more interesting question: Portion in cash-like entities (eg bonds)? Highly diversified portfolio so you can harvest winners and buy-the-dip in losers? Or just be a Boglehead and always be invested in the total market. I don’t really know the answer, so curious to see what others think. Personally, I’m just a VT and chill kind of guy.
Mathematically, you are right on the efficient frontier. With a 10+ year horizon, the paper confirms that adding bonds (duration risk) for 'safety' is actually inefficient compared to pure equity exposure. Smart move using BOXX for the emergency tranche, getting the T-Bill yield without the ordinary income tax drag is a sophisticated optimization. You are essentially running the 'Academic Ideal' portfolio If you are interested, I wrote a full breakdown of this paper, including the "Pathological Preference" math, in this week's Research Note: [Read here (100% free and no paywall](https://t.co/z2Pur8pkcV))
I am ten++ years from retirement And my portfolio is nearly 100% stocks and ETFs. (I do hold some treasuries and BOXX as my emergency fund)
Retards ofc. Why do you think we're here? Also puts weren't full naked. Cash covered with liquidity in BOXX, SHY. and other bond etfs.
BOXX was 0.35% the last 30 days. $160,000 x 0.0035 = $560.00/mo $171,000 x 0.0035 = $598.50/mo
Drop it in BOXX or SGOV and that's an easy $500 a month just collecting interest. Use the $500 a month to play with options and keep that money safe. It's too easy to lose a lot more playing around the way you did (all in), this will help lock your profit and build wealth now. If you drop $160k for interest and keep $11.8k to play with, you will still earn at least $450 a month. Congrats on the win, now protect that money properly!
2nd home purchase... I had a PAL with Schwab a while back, but interest rates in general where much lower then. I am familar with BOXX spreads, not so sure I'd want to take a position large enough to fund a $1M credit.
I wouldn’t even bother with treasury bonds. There are plenty of ETFs that are basket of short or medium duration bonds that pay you monthly dividends without the hassle. SHY, SGOV, BOXX(1-3 month but reinvests the dividends back into the fund), WEEK are all good options
Maybe get the money into BOXX until you decide what to do with it longer term. (BOXX is an ETF that sells box spreads and goes up a penny or two everyday but it never goes down.) It pays about the same as a CD and equal or more than most bonds. But it's easier cause it is in your webull account don't have to move the money around.
If you buy BOXX Its $115 per share. $20k would get you 173 shares. It never goes down and it goes up between 1 to 3 cents every day. So most days you would make $1.73 to $4.00 Average it out to $2 per day. That's about $10 per week. 7 months is 30 weeks. So buying BOXX you would make about $300 with very very low.....almost zero risk.
Robinhood is 3.75% and BOXX as of January 2026 is 4.39% l, plus if held for a year or longer, qualifies for long term capital gains if you ever wanted to do that.
Can you tell me how they both are different and why you prefer BOXX?
BOXX is a god send, perfectly complement my portfolio.
I love keeping my cash is BOXX. SGOV overrated
Alternatively: BOXX if it's more important to control *when* you need to withdraw the cash, instead of the rate itself. For me, LTCG for Fed + State isn't that different than ordinary for Fed alone. If this is money I don't want to invest and won't need for at least a year or longer (eg. eFund), then BOXX is an easy winner.
I know this is r/options, but ... how about buying BOXX etf?
>What would you say is the benefit of a covered call ETF then? The benefit is great if you are 65 and retired and need income every month. If you have spent 35 years building up a great portfolio of $1million (or whatever number applies to your situation) and you can coast and enjoy retirement and not check the stock market every day. Its a fine choice. But if you are 35 and investing $2000 a month - you need growth. (Not some silly income ETf designed for old people) Too many people see something good and think it's good for them - but sometimes what's good for others, might not be good for me. A very big part of investing is about realizing where you are in your journey, and does this process or this product or even this allocation fit your need ? I'm older than you but still 10-15 years from retirement (maybe more or less if my stock picks go well or poorly) (Im a baseball guy - love baseball so i modeled my portfolio around baseball how their organizations are setup if you see that below) I have several different "teams" - all with different purposes. 1 taxable brokerage - it holds my emergency fund (SPAXX and BOXX and SGOV) this helps with expenses and if I need to upgrade my home field I am ready. and it hold ETFs.(Not exactly part of my emergency fund but in that account - I only buy and hold ETFs. Mostly VOO + VTI + some international funds - but i Never sell.) That's growing money that i could access if I need it. But I don't plan to use it until later.... when I really, really need it.(Hopefully retirement when my income is a lot lower so tax burden will be less) 2 Roth IRA - its all individual stocks growth focused (i buy and swing trade in this account holding anywhere from 3 days to a year if the stock does well) + I call this the major league roster. Its my big holdings. I have 9 starters (biggest positions) all of those have stop losses set to lock in profits cause they already proved to be big winners. I also have a bunch of reserves(the bench) who are growing into positions to become a starter if one of those main 9 ever drops more than my rules allow. 3 Traditional IRA - a mix of some ETF & some individual stocks. ( I jokingly call it my minor leagues) - any stock on my watch list - i sell a share of an ETF and buy some shares of some watch list stocks. But in this account I keep a few shares of anything I think might eventually become a major league starter someday. 4 Rollover IRA from an old employer (its all ETFs - but its 25 different ETFs mostly momentum and sector ETFs i rebalance every week takes 10-15 minutes and it beat sp500 by 10% last year) - I keep track of all this shit in an excel document that automatically downloads the prices and price history as soon as I open the file. I am sure it sounds super complicated but I have major ADHD and I love it. Keeps me busy when my wife goes to bed early I can study all this shit for an hour or two and keep my mind going
BOXX.... DOES SPREADS AND IT ONLY GOES UP EVERYDAY IEFA international developed countries fund
If you want at or near treasuries level - i like BOXX (an ETF that sells box spreads) and reinvests everything so there's nearly no dividends paid out. (Less tax implications) I also like XDIV (sp500 ETF that does not pay out any dividends) I hold those as a percentage of my emergency fund / other savings.
The main purpose of a box spread is to create a synthetic loan or bond. Investopedia has a good article on it. [https://www.investopedia.com/terms/b/boxspread.asp](https://www.investopedia.com/terms/b/boxspread.asp) I have some of my "liquid" or "cash" invested in BOXX. So far, it's working out great. BOXX goes up in value rather than disburse interest from bonds such as SGOV or VBIL. I am patiently waiting for the fallout from any tax issues.
I don’t know what the apy is for ally high yield savings but personally I put cash in BOXX or USFR the yield is around 5%. If you’re looking for more return and a bit more risk VOO, VXUS, QQQM, SPYM are all popular. These are a low cost index funds that track the overall market. (S&P500, International, and the Nasdaq100)
for me - i have a momentum trading account where when i decide to buy a position i just buy enough shares that its about 3% of my portfolio. then if i was right and it starts to increase in value i buy a bit more (maybe 1% each day) over the course of the next few days but i stop when i get to 6% of my portfolio then i stop buying and set stop limits (up and down) so for me a full poisition is 6% and then i watch it. and update my stop limits every day or every few days. as long as it keeps rising.....i might hold for a bit but if it loses momentum - then i sell it and start looking for the next one to jump on. (i might hold as much as 10-12 positions at any time and rotate the rest of my money in that portfolio between VTI QQQ VOO and BOXX in vraious weighting as needed)
Bonds bad gold better look at a 60/40 stock bond portfolio. It’s not a good look. My view is diversification is good if the instruments are not very correlated and both perform well. Just quick glancing at charts VXUS looks good and gives diversification into international stocks. VOO VXUS Gold I think would a be pretty solid long term portfolio. Cash in USFR or BOXX. NFA
if your real emergency fund is $50k - you could invest lets say $20-25k of it split sveral ways to diversify so if shut hits the fan and you have to sell not every thing goes down at once. say for example - if you dont need the dividends $15-20k in BOXX (box spread ETF that pays better than most treasuries and does not pay dividends) $5k SPYM $5k IEFA (or similar international fund) $3k SBUG (or similar gold fund) $3k UTES (utilities) $3k FV (sector fund that avoids tech) $3k XLV (healthcare) $3k RDVY (rising dividend fund) with the exception of SPYM - i think at least a few of these will maintain their value or go up when SPYM drops. just my opinion. not financial advice.
whatever you dont invest in stocks or index funds - buy some BOXX. (its an ETF that sells boxx spreads and goes up a couple cents every day)
i have a 401k that is 50% sp500 and 50% life cycle funds. then me and wife each have fidelity accounts with a little over $100k which includes (our emergency funds in taxable accounts which are like 30% SPAXX / 30% treasury funds like sgov and usfr / 30% BOXX and 10% sp500) then we each have a traditional and a roth - hers are both ~ 30% each of ETFs ( VOO / VTI / QQQ ) and 10% in international ETF (similar to VXUS) mine is 1 account (Trad.IRA) has all kinds of ETFs and the other (Roth) is my gamble up individual stocks account - it made ~20% more than SP500 this year - so i will do it again next year - we agreed that if i cant beat the market - then i will switch to the all ETF approach. (i am only buying shares. no options and no shorting.)
Saving on the NY state tax is nice, but you could just buy BOXX and not pay any tax. They’ve managed to avoid paying out distributions all but one month in their history. And it’s “yield” will be comparable to SGOV. I have used JAAA for cash I wouldn’t touch for 6-12 months. You could honestly use it for an emergency fund too, as long as you have probably 20% more than you think you’ll really need in that fund
Thanks, may add a position in BOXX. I need some etfs like this that won’t pay dividends as ordinary income.
BOXX tries not to do distributions and when it cannot, they are taxed as short/long term capital gains. The rest distribute as income. You can search for "ultrashort term muni" funds.
I come to learn that using BOXX may be more tax efficient if you hold for over 12 month.
I use BOXX as my Emergency Fund, SGOV as my Escrow and future IRA contribution fund, and SPRXX as my sinking fund. There are plenty of other funds you can do this with, it's just a matter of what you are comfortable with.
Hey there, always love to always love to see your update posts. Congrats on the consistent gains. What is your opinion on the ETF BOXX? It is essentially an ETF that runs a box spread strategy and pays the risk-free rate over time through stock value appreciation.
looking for some advice on the portfolio im building to buy a house with in 4-5 years time, not looking to get rich, just to make as much money without risking much, looking to dump 500+ a week in with these percentages: 40% VOO (Vanguard S&P500) 20% BOXX (Alpha Architect 1-3 Month Box) 20% QUAL (iShares MSCI USA Quality Factor) 20% SPVL (Invesco S&P500 Low Volatility) TIA
I use BOXX + BRKB + VT (1.66% divi)
That’s what prime money market funds are. However, yields spreads on corporate bonds aren’t that great. They also aren’t as tax efficient as SGOV. BOXX is an option if you can hold longer than a year and the tax arbitrage is worthwhile.
JPST MINT GSY NEAR ICSH PULS BOXX https://etfdb.com/etfs/bond-duration/ultra-short-term/
I had been using SGOV and BIL (just with ever one let me round out my cash). Then I shifted to using BOXX because it's less work and offered more control on how I realized gains. I've slowly been moving out of the curve with sales of BOXX and going into SHY. For the long end. I have IEF for my tax-exempt and TMF for my taxable.
With ambiguous purchase dates, you could assume larger risk, like a slight equity index allocation, maybe longer duration risk like intermediate treasuries rather than tbills, etc. Either way, the two best looking cash-like risk free rate investments are SGOV/CLIP or BOXX, though BOXX's tax treatment has had the spectre of the SEC looking over it, whether its method of avoiding capital gains distributions to make it more tax efficient for you is legal or not. Thats been murmured about for a couple years. For more risk you can use SHY/IEF for short and intermediate treasury bonds, simple index ETFs for stock exposure, you could expand the exposures to something similar to the "Golden Butterfly Portfolio", which is a variation of the "Permanent Portfolio", which diversifies between short and long duration bonds, stocks, and gold to produce a portfolio with lower-than-market max drawdowns but decent returns to preserve and hopefully increase your purchasing power. Depends how flexible your timelines are.
BOXX, hold for a year and get better tax treatment
A riskier box spread ETF like BOXX can provide sub 5% returns every year, and it acts like a government bond. He doesnt even have to risk the money given to him if he just parks it on SGOV or BOXX.
have you considered BOXX? BOXX hasnt seemed to reduce its daily return, even after fed lowered interest rates. (BOXX is a covered call fund that goes up 1 cent every day + some days it goes up 2 cents. but it never goes down.)
Lol, you are way more concerned about my position than i am. Thing about selling puts with the intention of getting shares, is that the only time i actually care, is about a few days before expiration because i will either want to roll for more credit to drop share price even more or if im ready for assignment is to sell BOXX to get the cash needed for assignment. This is a longer term position so weekly pullbacks dont really matter to me.
Are you okay wirh a 40% drop in value at year 4? You could consider doing a ladder of buffered S&P500 ETFs: MMAX, MAXJ, SMAX, DMAX and PAAA or BOXX (20% of each). Some market upside potential with drawdown protection. It all depends on your risk tolerance. I'm very comfortable with this very limited risk profile for a short-term investment, others may not be.
+1 for BOXX, this is exactly what it was designed for
Yes. 👍 BOXX looks like part of a solution. Perhaps combined with the other suggestion of fixed annuities.
Look into BOXX, basically executing and roll over box spreads
How about BOXX? I think it uses futures contracts to convert bonds interest into NAV growth which can be deferred and taxed as capital gains on sale. It doesn't seem useful to me at my current income so I haven't looked into it too much, and I might be explaining it wrong, but it might be worth looking into.
I'd give you a bit more credit than that. Not many would/could have done what you did. I, for example, graduated into the GFC, could barely get good work despite having a good college degree, still I was lucky enough to have work, not many saved nor invested back then but I did what I could, and I made some good investments (GOOG/LVMUY) but also bad ones (T/INTC) instead of just indexing and chill despite being a fan/student of Buffett. I didn't start indexing and index leveraging until the pandemic dip. So congratz & fuck you, but make sure to pat yourself in the back. p.s. I read your other posts about why you're getting out now, but what are you going to? Just deleverage into 60/40 VOO/SGOV? All into BOXX/SGOV? 3/7/10/20/30 yr bonds? Gold? Just taking cash and going to Thailand?
While it hasnt yet, BOXX is set to implode if the IRS looks at it and they want to get rid of it Personally I'll stick with investments i am more sure of and that I don't think are illegal
Deferred taxes on BOXX which is same investment strategy. I am holding that until January
I think you need to understand what bonds do. They pay out interest, they don’t ‘grow’ the way companies do. They can fluctuate in value but there isn’t any ’growth’. If you just want the share price to go up, BOXX is the closest thing that does that. Or just turn on DRIP on SGOV so your share count increases over time.
If you turn on DRIP, SGOV will be as stable and linear up and to the right as BOXX is. https://testfol.io/?s=hRZechuecLM
Emergency funds are for emergencies and should be liquid (access within 72-hours or less) and not tied to market fluctuations. Ideally, they should grow with at least inflation, after tax. FXAIX fails that test because it’s subject to market fluctuations. I personally am using BOXX for my emergency funds within a taxable brokerage. This can carry some tax advantages (deferred LT CG) but has potential future tax risks (IRS changes tax treatment). I am in a state without income tax and willing to take the risk.
The guy didn't say he was going to put the money in an individual stocks that can drop 80% ($100k to $20k) in one day or even 80% in a week He said the sp500. Name the last time the sp500 dropped 80% in a week. It never fucking happened. And it's not going to happen next month or next year. Look at the other side - what if you have an emergency fund (mine is $20k) I have $8k in SPAXX/ $7k in BOXX and $5k in sp500. Instead of averaging 3.7% with SPAXX only - my emergency fund is averaging (3.7 * 8 + 4.3 * 7 + 10% * 5) (more like 5.5%) - if an emergency comes up where I need $8k I am good I got it in SPAXX. - if an emergency comes up where I need $15k I got that in SPAXX and sell $7k BOXX - and God for id I need to cash out sp500 - I am willing to take that level of risk that hopefully the sp500 won't drop 80% the same day my emergency randomly comes up.
You are correct with your explanation, but you are wrong about the terms. >Selling a put requires you to have the cash equivalent of the cost of 100 shares if assigned (150 \* 100 shares) this buying power is in lock up/not tradable for the duration on the short position. This is a Cash Secured Put (CSP) which can be done in a standard margin account. A CSP will do what you say above. There is a different option permission brokers usually call "Naked Put". A naked put can be cash secured if you wish, but the broker will no longer lock out that cash and prevent you from using it. They will instead take the value of your account and calculate a "buying power" number from it which also includes the value of any marginable securities such as stocks and ETF's. This "buying power" number is then reduced each time you sell a put, but not by the full put notional value, only a fraction of it. Note you are not borrowing this amount on margin, and you do not need Portfolio Margin account for this. [https://imgur.com/a/737oWIh](https://imgur.com/a/737oWIh) So for example if i try to sell the AMD Jan 21 2028 $210 put its telling me that my margin impact is $8730.56. That means if i have $21000 worth of say SGOV or BOXX in the account i could sell 2 of these puts and still be fine based on its margin requirement. Doesn't need to be in an interest core cash position or anything of the sorts.
Might also consider BOXX It's been real consistent goes up 1-2 cents every single day. Never goes down. I like it as a cash equivalent holding (Does not pay much dividends so it's not taxed till you sell)
>That's 34 Delta on the month, meaning there is a nearly 70% chance that the price will not hit that price within four weeks. Delta is very very roughly related to the probability of expiring ITM, look at it like this just a week ago on Oct 1 there was very slight possibility of IREN going from $47 up to $60 yet here we are. With the momentum that IREN has the only thing you should use delta for is $1 increase in IREN causes the contract to increase by the delta at that time. >$75 strike covered calls with 11/7 expiration are selling for $4.30 You are looking at the ASK, which is to buy that contract, to sell it you might be able to get near mid fill, but you sell at the BID which is at $3.80, so quite a bit less than the ask. And not quite your 7% return. >Tldr; skip buying calls, think about buying shares and selling calls (need at least 100 to sell one contract). You are one step away from getting it. Instead of outright buying the shares and selling covered calls, could instead be a bit more defensive and park the cash needed in an interest bearing instrument(so it keeps earning interest while you wait) and then sell a CSP against it for $60 put for your same expiration which is going for $8.10 at the bid. This allows you to lower your share cost if you get assigned by $8.10 which means you effectively would be buying it at $51.90 or if it stays at or above $60 by expiration allows you to collect the $8.10 premium as profit which would be 13.5% yield on cash on top of the yield that would get from the interest bearing instrument like SGOV or BOXX. Best part since are not tied down to shares if IREN does take a detour for a bit but still feeling bullish on it, can always roll the put out further in time and possibly lower in strike for more credit. But to find out more you will have to visit r/thetagang
At one point I used BOXX, which paid like SGOV but maybe had a little better tax deal
Consider making a fidelity account get all your money in there and buy a fund called BOXX It perform like a money market account but with no dividend and no tax implications. (Makes average 4% APR) By every single day every share you own goes up 1 cent or 2 cent. Never down. Only up 1 cent or 2 cent. Every day all year. (It's built around using options and it works) You can get all your money in there and take your time deciding when to go into stocks or other investments.
in terms of fixed income, SGOV and BOXX yield a little bit more
I used to be an ICSH guy too until learning about BOXX. Check it out. Interest accrues onto the price of the ETF, so you never have to pay taxes until you sell and then you pay at capital gains. It’s pretty sweet.
SGOV or BOXX for short term savings, or you could get the T-Bills yourself if you don't mind the hassle
I'd go with somehting like a combination of SGOV, PAAA, BINC for a 3-4 year time frame. If you want some equity exposure, maybe some BALT. If you want to avoid taxes for the next 3-4 years, consider BOXX, BALT, SUB
How much are you converting each year? You'll have to keep the money invested in BOXX for a year to get long term capital gains, so you'll have to keep a least 1 years spending in a regular HYSA or similar.
BOXX is the only thing that comes to mind
You really competing BOXX and SHV to GME ? What does the amount of money that an ETF has have to do at all with the amount of money a holding company has ?
And conveniently ignore that exercising warrants increases the shares outstanding. Wait until the GME holders discover how much cash BOXX and SHV have with zero debt.
Option buyers think that the contract should/will be worth more than what it is currently trading for, and option sellers think the opposite. It's two parties making a bet that they have more alpha than the person on the other end of that trade If you believe in efficient market theory, assuming both parties aren't insider trading, neither of them have any alpha; over time, both buying and selling options is capital neutral sans trading fees & borrow rates (leverage is not free: see BOXX) Option buyers want leverage and option sellers want less volatility. Using recency bias and claiming "MSTY is stupid because MSTR outperforms" is like saying "QQQ is stupid because TQQQ outperforms". No shit, sherlock, the product with more leverage outperforms during bull markets Or inversely, if it was January 2023, I could use recently bias to claim "I sold all of my QQQ for JEPQ; look at the 2022 chart!"
Hell even if they can match VOO return over time it would be interesting but I doubt they can. Then again BOXX pulled it off when it comes to t-bill alternative.
I'd toss most of it back into QQQ or VT personally, but 7% cash isn't gonna ruin you. Also maybe something like SGOV or BOXX depending on the spread between its returns and your MMF
Oh I’ll be back in for sure, I’m only 43. I’m just still chilling for a bit. Nvidia is slightly up from when I sold but the market is reaching ATH and my other stocks are doing well. My big trade is parked in BOXX so it’s growing with interest
Another option is BOXX, which is a box spread ETF. You can trade in and out of that, and as a benefit they retain most earnings, so the taxable event occurs when you sell, possibly at a long term rate, rather than through distributions.
IMO, the best defense against sequence of returns risk is to use a variable withdrawal method rather than a 60/40 stock/bond division. You can check out various stock/bond divisions and various withdrawal methods using ficalc.app. I am 3 years away from retiring and have roughly 4% in BOXX in my taxable account and all the rest in index stock funds. I recommend the 95% rule because it is simple and easy to follow. Set your minimum withdrawal to equal your mandatory expenditures. Set your maximum withdrawal equal to double your "normal" expected expenditure.