DIA
SPDR Dow Jones Industrial Average ETF Trust
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Are 2DTE Call Options a Good Idea Now?
After Wallowing in a 20K loss since January…
After a Whole Year Wallowing in my 20k Loss…
Am I missing something? What is the benefit of international diversification when ETFs like VXUS significantly underperform ETFs like VOO? Diversification just for the sake of diversification?
Got assigned the next day on deep ITM put with 5 days left to go to EXP, why would someone do that?
Are bought call options that are in the money worth more closer to expiration?
Funds were waiting for earnings to justify EOY rally. Taking bullish hedges.
If you can't beat the market why not just invest all in SPY or VOO?
Does the DIA run the USA ??
Selling weekly or monthly Cash Secured Puts on QQQ, SPY, or DIA
GETY heating up for next weeks market downturn and squeeze potential after great earnings and analyst upgrades
Key fib levels you want to watch for SPY,QQQ ,DIA, IWM
Recommendations for long term stock portfolio involving index funds.
Crayon Drawings for Impending Sell Off
Need to make room in my roth for taxable bonds, want to sell some equities and rebuy in taxable. Which of these would be best?
2023-04-03 Wrinkle Brain Plays - In the style of Count Dracula
Other options that expire daily other than QQQ & SPY?
One of the most common trend reversals is forming on $SPY. Same trend noticed on $DIA & $QQQ. We could see a break of the trend for $SPY
DIA trading within CPI Range from June! This puts the market in a position that could see a potential breakout in either direction. Can we possibly see economic data that propels the Dow higher out of the top of the range or will the trend of negative data to end the year lead us downward.
DIA; We are in a bear market rally. This is a 20-year monthly chart. Look at the RSI.
2022-11-15 Wrinkle-brain Plays (Mathematically derived options plays)
2022-11-07 Wrinkle-brain Plays (Mathematically derived options plays)
I heard you can make money in the stock market. So I bought some DIA, other stocks. The value just goes down! How is this supposed to work?
Buying puts on the Dow Jones ETF (DIA)
SPY 385.53 0.01% QQQ 288.59 0.25% BTC/USD 19183.77 1.197% DIA 308.10 Apple Sidesteps Feds On Weed As Health App Doesn't Discriminate On Legality
Expected moves this week. TLT, QQQ, Autozone, FedEx, Costco.
Yolo, 1st time gain over 100% in the last 3 years 😜 with PUTS (TSLA, ENPH, SPY, DIA) started yesterday.
I got a profit from this diamond company stock.
Expected moves this week. SPY, VGK, Docusign, NIO and more.
$DIA One of the popular investment over TSX-V .
Expected moves this week. SPY, QQQ, Baidu, Lululemon, Mongo DB and more.
Expected moves this week. Tesla, Zoom, Salesforce, Nvidia and more.
Brilliance and $DIA forever go hand in hand
In Case You Start Hearing 'Stagflation', Here's A Primer
Expected moves. Microsoft, Apple, Alphabet, Amazon, Meta, Shopify and more.
MY NEXT PREDICTION (AFTER BECOMING A MILLIONAIRE FROM MARKET COLLAPSE.)
Expected moves this week: Alphabet, Goldman, Tesla, Netflix, Snap and more.
$DIA a stock with ultrafast multiplying capacity
2yr/10yr treasury inversion hit a new high yesterday
$DIA announced a non-brokered private placement offer.
$DIA Margaret Lake Diamonds Inc wishes to announce it has entered into binding agreements
Expected moves this week. Tesla, Twitter, JP Morgan, Wells Fargo and more.
Expected moves this week: SPY, QQQ, Nike, Micron, Occidental, Exxon and more.
Expected moves this week. SPY, QQQ, IWM, MSTR, COIN, ADBE, ORCL and more.
Expected moves this week. SPY, QQQ, Amazon, Alphabet, Docusign, NIO and more.
If You Invested $100 In GameStop, AMD, Nvidia, Tesla, Apple, Plug Power And Dogecoin 5 Years Ago, Here's How Much You'd Have Now
We will bounce back to 415-420, then fall to 320. Let me explain:
Here is a Market Recap for today Thursday, April 7, 2022
Transports Lead Dow30 & the picture is getting ugly
loss DIA 3/25 put. I am never going to financially recover from this.
Expected moves this week. Tesla, QQQ, Nike, Adobe, NIO and more.
Brace yourselves boys and girls, choppy waters ahead!
Here is a Market Recap for today Thursday, Feb 24, 2022. Wild day to say the least
Most of the times $QQQ rises overnight after a green day
Expected moves this week. SPY, COIN, BYND, SQ, MRNA, BABA, and more.
I follow over 100 ETF's every trading day and am just shocked how their price movements are so predictable!
Here is a Market Recap for today Tuesday, Feb 15, 2022
Expected moves this week. Palantir, Shopify, Nvidia, Roku, Draftkings and more.
Expected moves this week. SPY, VIX, PTON, DIS, TWTR and more.
This week in options. Alphabet, Meta, Amazon, AMD, Ford.
Here is a Market Recap for today Thursday, January 27, 2022. Another volatile day
Here is a Market Recap for today Thursday, January 27, 2022. Another volatile day
Expected moves this week. VIX, BTC, TSLA, AAPL, HOOD and more.
Stalking the Bear: The dreaded rising wedge $DIA $MTUM $FFTY
Mentions
Cybersecurity is taking a beating so I started a position in a few ETF’s (cibr) and some one offs that I like. Cybersecurity is more important than ever but people are letting short term Marco fears get the better of them. I also like less traditional infrastructure plays that are not over inflated thanks to AI buildout. People forget, the US is still facing massive pressure to update and fix aging infrastructure. AI hype will push margins higher across the industry, whether a business has a nexus to AI or not. The entire construction/infrastructure industry stand La to benefit — I like DIA and PAVE. Robotics is heating up, some interesting ETF’s and companies out there like BOTZ and FANUY. Tech is always interesting, but lately I’ve been liking IXN for some international exposure. It’s become a favorite of mine. We are just at the beginning of the AI and tokenization boom — people tend to forget that.
One can always question. I thought something very wrong was up with my system as technical indicators and everything was positive. My ML model was also positive. Yet the outflow was huge! Seeing the pictures and the intensity of the tweets and posts (Trump and Vance planting a flag on Greenland) as well as the military threats. They surely made sure that the market was going to tank quite hard. Oh, I also detected some euphoria in a huge amount of calls on Thursday Retail was buying 3 calls for every put on Thursday in XLF, while DIA was almost two to one. Then insiders sold to retail in a huge dump on Friday. A perfect retail trap...
And doubled my Dow Jones puts today using DIA
My current bets: CVNA 1/23 400 p & 1/30 385p DIA 1/23 478 p GME 1/23 21c,22c,23c
I made 40 bucks buying a DIA call this morning and selling it an hour later. Most of the rest of my portfolio is in spare change. How are nickels holding up?
Bought a DIA call this morning and sold it about an hour later for a $40 profit.
I made 40 bucks on a DIA call (day trade) this morning. I feel like Paul Tudor Jones.
DIA and IWM are the ones to trade this month
SPY is outperforming QQQ while DIA and IWM are both 3x as red Imagine being SPY puts
I was looking for a DOW ETF many years ago. (ETFs were relatively new and I was buying SPY, the only S&P 500 ETF at the time.) Got bad info - was told it was DDM. Yes DDM is a DOW ETF. But found out much later it’s leveraged 2x. I bought some. It did great! I bought more. It did great. Somewhere along the line I realized DIA is the DOW ETF. DDM was extremely good to me! Still have some. It’s risky because although it rises close to twice as fast as the DOW, it falls a bit over twice as fast as the Dow when the Dow is down. If DOW ever fell 50% in one day, DDM is done. Not happened in my lifetime. I’ve divested a lot but still have some. “Problem” is keeps growing!
> DIA +2.4% YTD > SPY +0.5% YTD > QQQ -0.1% YTD > My port +13.7% YTD You know what I will take that
I get it, SPY will be flat today, DIA and QQQ will total up to flat. Let's just skip to tomorrow please.
I raised cash and trimmed DIA, SPY and QQQ. Not sure how Europe responds to US aggression, they can't really respond militarily, but I can see them responding economically. Interesting times.
DIA 485p exp next friday(1/16) only 2.12$. Just saying. Got a few for 1.88.
I bought QQQ and DIA puts for this week just to let you know how I’m about to lose the rest of my money
The Dow being up 800 points is pure comedy. I have put that I bought today that expire Friday on DIA.
What is DIA. I know I can Google but I got you now.
DIA is way over priced, like regarded...
Look at DIA... wild moves and above support...
DIA already red, premarket high unsustainable.
In the context of traveling, going to Europe isn't that expensive at all outside of the flights and even those aren't any more expensive than many domestic flights if you have date flexibility and can use the <$800 fares many carriers offer. Outside of like Switzerland, Ireland, London, and a few other places there's plenty of cheap lodging available. Plenty of cheap food available. Public transit all over the place. So many free sites to see you don't need to spend much on ticketed attractions if you don't want to. You can spend a week somewhere like Budapest, Madrid, or even Paris for under a grand excluding flights (which are so variable depending on dates and origin/destination that it's tough to simplify) if you want to, good luck doing that in the popular American cities to visit It is indeed a lot cheaper to ski in Europe than Vail. I've done Val Thorens, St. Anton, and Chamonix all for under a grand for a week of lodging, sometimes you can't get a place for a single night for that in Vail. Those and many other resorts are on the Epic/Ikon pass so you're not paying for lift access if you already have that anyways but if you don't it's no more than ~$100/day (Vail can be had for this price if you buy in the spring but people always get stuck on the $300 window rates). Comparable food and drink prices on the menus but there's no +tax/tip over there. Affordable transit options to most of these resorts too, none of that in Colorado that's comfortable/fast (but it does exist if you want to train from DIA-downtown Denver then bus to the resort on an inflexible schedule). All in, paying cash for everything, you're gonna be hard pressed to spend a week in Vail for less than Europe's best resorts (outside Switzerland) no matter what the flight across the pond costs
Ditch Doge 100%. It would be smart to have your initial 50k in SPY, QQQ, DIA, IWM to limit risk on your initial investment, and if your spec stocks do real well, take some of those gains and keep funneling them into index shares. Indexes will never have “a bad quarter” the same way a single stock always has potential for, or potential manipulation. I like MU as spec play for next 2-3yr.
Alright I've got my plan for end of day I'm thinking SPY CALLS QQQ CALLS IWM CALLS DIA CALLS
I've been burned enough by shitty options and reckless trades. I have been reborn. Now it's just a steady stream of cash into SPY,DIA,NDAQ,and VT
So ETFs then, so you aren't gambling on options. VOO and SPY are the same, just managed by different companies, then you have DIA (Dow Jones), XIL (industrial sector) and XIK (technology sector).
It’s great that you moved from BTC to the stock market, but there are a few structural issues worth pointing out. 1. **Your portfolio isn’t as diversified as it looks.** Even though DIA, VOO, and QQQ track major indexes, they’re all US-based and overlap heavily. If US large caps fall, all three are likely to fall together. Adding **international exposure** (for example, STOXX Europe 600, Nikkei 225, or ASX 200) would improve diversification. 2. **Bonds aren’t about chasing returns.** Bond ETFs mainly reduce volatility and provide dry powder for rebalancing during downturns. Even a small allocation can improve risk-adjusted returns, especially if volatility was an issue for you with Bitcoin. 3. **Dividend ETFs aren’t necessary unless you need income.** They don’t automatically outperform growth-focused funds and can be less tax-efficient. If it were me, I’d simplify the US equity exposure, treat QQQ as a tilt rather than a core holding, and add either international equities or a small bond allocation instead of dividend ETFs. *This is my personal opinion.*
So VOO holds all the stocks inside DIA and QQQ , you would be more diversified if you simply held VOO Adding QQQ really does not add diversity it just concentrates your portfolio into large cap tech DIA is not a major index its just around for historical reasons as the OG index , but it still holds a sub set of stocks that are in VOO Also VOO holds companies that pay dividends, VOO pays dividends. VOO is not a growth index its a broad index that will hold both growth and value companies Diversifying is not about holding different ETFs once could hold a split between VTI (Total stock market) SCHX (dow large cap) VOO (S&P500) QQQ (nasdaq) and this portfolio would be less diversified vs simply holding one ETF VTI as all the other ETFs are just a sub set of VTI so adding those positions makes you less diverse and simply more concentrated in USA large cap stock TLDR just hold VOO or VTI, if you want to add another fund for diversity look at a fund that does not completely over lap with VOO/VTI like a foreign fund , adding bonds will reduce the risk so its fine to add bonds if you want to bring down your risk
SPY is more optionable vs VOO and that is the only reason I would buy SPY over VOO. Check the expense ratio and overlap of all the funds you are considering and read the prospectus for every fund. Idk much about DIA but it doesn't look like it has many holdings. I'm a fan of SCHD especially in a falling interest rate environment even though it seems to get lots of hate for lagging the total market it's still a part of my portfolio. Also idk wtf that other guy is talking about, SCHD doesn't use any option strategy in the fund and I had to go back and look at the prospectus again to confirm that the claim is total bullshit. That's another good reason to READ the prospectus yourself
SPY & VOO are effectively identical. I wouldn't have both unless you're doing it to have two different buckets for taxable capital gains optionality later on. As far as thoughts, SCHD is a dog imho.. dividends are tax inefficient, their cover call scheme isn't super helpful in a true market that goes up. DIA doesn't really seem necessary either.. I'm a boring r/Bogleheads kind of investor - you're probably just as well or better off with either an S&P 500 index, US Total Index or World Total Index as you are by overcomplicating there with those tickers. SCHD had a lot of great online influence to make it seems like this great plan. In a lifetime of wealth building, I don't see any benefit to it vs. $VTI and personally bet that $VTI will perform better.
Thoughts on diversifying portfolio to just DIA, SPY, VOO, AND SCHD. ALL DIVIDEND PAYING STOCKS AND relatively safe. Didn't mean all caps lol
After being constantly burned by following my fellow regards here I'm just purchasing and holding $SPY, $NDAQ, $DIA, and $VT in even amounts. I care not for yearly returns, I care for the long term
I'm over here watching my DIA 0dtes up 42% already. Nerd.
It appears 12/12 DIA 485P is the play for tomorrow... Or at least 2800 degens believe it to be 🤷🏾♂️
Should i just trade DIA instead of SPY, dow jones is pumping
This is the way I thought of DIA Dow represents a more diversified portfolio than the tech heavy qqqs or even the spy500. Financials make up more of the index today but historically it was energy. It is not industrials that is now XLI/VIS. The future will probably have a more tech focused index. The dogs of the dow often rally for a catch up trade - EDOW is an equal weight dow.
SCHD SCHY SCHB all equal split DCA over 2 years would be my go if it has to be all stock 300k just my opinion not advice and those ETFs are not absolute and interchangeable VOO VYM VYMI or SPY DIA VEA and so on so forth
This is so dumb that I'm getting more regarded by reading it. Richard Branson plays tennis and goes windsurfing every day on his island. You think Jeff Bezos is miserable? The real flex is retiring early and traveling or doing whatever you want. The richest guy I know is probably worth 10-20M and retired at 58 to travel the world with his wife. He trades the markets and does whatever he wants every day. By placing ridiculous bets, you're actively ensuring you stay poor. Every day, you're giving your money to thetagang. I honestly think what I did will work for many people: buy SPY until you hit 100 shares, then sell OTM covered calls. Use that money and any new money coming in to place degenerate bets to your heart's content. Then you'll never be poor, and if you lose every bet, you've still got 100 shares of SPY and can sell covered calls. Rinse and repeat with QQQ, DIA, VOO, etc. I have a portfolio that generates options income that I can YOLO into whatever I want. Or just do the opposite of what OP says.
Minimal risk: HYSA, SGOV, Treasury Direct, CDs Historically dependable but has risk: VOO, DIA, VTI, ect. Plow money into saving while you can -- establish your emergency fund, max those tax advantaged accounts, pay yourself first, save for your next car, save for a down payment on a house
90% portfolio VOO, DIA, QQQ Also sell puts and sell calls on Hood, RIOT and Tesla
Be safe man VOO, QQQ, DIA
90% portfolio is VOO, DIA, QQQ
Keep it simple VOO, DIA, QQQ
I have a feeling that everyone’s gonna be cautious near term and pivot to DIA stocks
DIA finally did something. Happy to see that
DIA is actually green, but none of you know that because who the fuck trades that boomer shit lmao
DIA SPY QQQ all up +1% and my port just went red. Honestly don't think that's ever happened to me before.
Do you have the math to back up that .8 correlation? I honestly don't know the exact number, but intuitively I think it's much lower. The best free calculator I could find when I did some research a while back was only allowing me to do 4 underlyings. I concur that the 4 major ETFs (QQQ, SPY, IWM, DIA) are about a .8 correlation, but that's why I add in the inversely or uncorrelated names like IBIT, GLD, USO, IYR, TLT, and VIX. If you include the VIX, then 6 of the 13 are not even stock based. I trade three commodities (Bitcoin, Gold, Oil), which do have single asset risks, but they provide diversification from your stock ETFs. These commodities are largely uncorrelated from each other and from stocks. Also, I trade three additional alternative asset classes (Bonds, Real Estate and Volatility) TLT, IYR and VIX. TLT and VIX provide negative correlation diversification, and IYR (Real Estate ETF) provides protection as well.
Sorry guys, I bought DIA the other day.
Thank you very much for your insightful comment. This method only works for indices, and I get the same accuracy for SPY (VOO) and DIA. For EMD and RTY, the accuracy is around 60%. It also works perfectly for GLD ETF. For individual sticks, the results are not great.
DIA better jump like $20 next week with all its earnings
Man that 480 DIA put on my watchlist printed. Imaginary me is super fucking rich.
Truth. Is even $DIA safe?
Either way vote goes, DIA will not hold after headline / 2k points in 3-4 days is definition of ridiculous. Take the OTM 484 puts here for Friday, do 1/2 And if, after bull govy news, AVP them after the pop as will be a drop into the weekend. Doesn’t pass - will drop 700 points. Worse case scenario you just wait for ANY bad news into Friday And you should be golden. Offset with 1:10 2dte qqq calls.
DIA btw is the Dow equivalent to SPY
DIA up 1% while QQQ is down and you 'tards are still buying tech stocks? Consumer defensive up more than tech. The AI bubble is popping...
The Dow was up 1%. Ber doesn't just buy puts. Ber buys safer assets like DIA rather than QQQ.
Lame ass DIA popped off today
#DIA about to hit ATH LMAO 🤌
Hmm. Reduced demand for jet fuel will drive oil prices even lower, which in turn reduces ground transportation costs and increases profit margins for wholesale and industrial companies? Calls on DIA. I'm just spitballin' here.
He's underperforming the 10 year S&P, NQ and DIA... Like his returns are worse than just buying gold
DIA is 11% YTD, thus, nearly flat, SPY is up 16% YTD but could potentially be an AI bubble ready to burst. One hawkish fed moment and I bet it pancakes.
NVDA propping up SPY QQQ DIA. Good luck bears
I’m an older investor and hold quite a bit in the DOW. The idea was 30 companies representing different aspects of the economy. It’s weighted by stock price and they used to keep them in a pretty narrow range. The range is wider now so some of the tech companies have a bigger share. But I still think the weighting of these leading companies is very different than the S&P 500. Comparable of not equal. But if one of the markets takes off as a percentage, it moves the needle as if a big tech company takes off be the same percentage (stock market wise). The ETF is DIA. Not sure why yet but the DOW looks to be up pretty big at the pre-open. Guess I’m old school but I like the DOW in my portfolio.
Changing sector weights to underweight sectors you think are more volatile probably won't be as helpful as you think. XLK (S&P 500 Technology) and XLC (S&P 500 Communications) have better 3 year alpha and Sharpe ratio than all the other S&P 500 sectors even though tech and communications are supposed to be riskier. XLP (S&P 500 Consumer Staples/Defensive) has worse returns and risk adjusted returns than IUSB (total USD bond market) over the past 3 years. Healthcare is another sector that's supposed to be safer, but the performance has been abysmal this year because of UnitedHealth. You thought DIA would be safer because it's supposed to be more spread across sectors, but UnitedHealth has noticeably dragged it down. DIA's limited holdings make it somewhat riskier than other index funds since it depends more on individual stocks. the DJIA is also weighted by price, which is a pretty nonsensical way to weight an index in the first place. If BRK-A was in DIA, it would be 99% of the portfolio. Ultimately, choosing to overweight a "safer" sector doesn't necessarily mean the value of your investment is safer, especially when adjusted for inflation. This also applies to asset classes, but at least a rate cutting cycle is beneficial for bond prices. Even foreign bonds are somewhat affected by rates in the US because foreign bonds are compared with US bonds. I used 3 year measurements because that's what my brokerage's app shows. Over the past 5 years, XLP has clearly outperformed IUSB.
My portfolio is SPY/QQQ/DIA and I promise I make more money than you sweetheart :)
The DIA ETF was started in 1998. So you've been able to buy a $INDU index proxy for over a quarter-century.
Because this has been such an aggressive campain, I've been trying to properly understand the motives this major push... Am I wrong or is there no precedent for huge, long-running UITs converting to ETFs ? If the old structure is so bad, why hasn't another UIT like SPY or DIA ever converted? I understand that many mutual funds have converted to ETFs, I'd just love to know what's risks there may be with UIT->ETF. For instance — and this is a genuine open-ended (har har) question — how could the shift from a bank trustee to an Invesco board adversely affect the shareholder? What would new fee levers look like? The fund has performed amazingly with its current structure.
Change ticker to SPY & QQQ & IWM & DIA & VTI And its almost bullet proof cause it’s a index etf that unless USA dies it most likely will make new highs except the low income when market crash or prolonged bear market (2008/2022/2000) is pretty solid Preferable u have extra cash to average down on market bottom giving u better strike price and income earnings when market crashes Is ur really wanna be safe try wheeling VT lol 😂
I tried to backtest similar strategies (based on RSI, 200 SMA, Shotastic and so on) on many assets and nearly all the time it was worse than buy and hold. It happens because you stay uninvested for too long. However, also I tried another approach: took DJIA as an example - including historical compositions and stocks splits as it is price weighted and performed a backtest when one by one stocks are added to a portfolio based on similar signals and this way slowly the index is assembled. Basically based on RSI (as an example) signal you pick the next stock to be used in index assembling. And it worked better than applying the same strategy to the index itself (DIA etf as an example). Likely because you just reduce the time when you are uninvested. But still it is a lot of work and the result is only slightly better.
You can buy puts by using DIA.
Concur -- no reason that you must be 100% in one ETF. I use VOO, VTI, QQQM, DIA, MOAT, and others. Pick ones that work for you.
DIA puts. Short the boomer stocks lol
Peg performance to QQQ. And QQQ is the worst performing ETF today when compared with SPY, IWM and DIA. lmao
bro how you could bought shares of SPY, IWM, or DIA and made money
Stop falling for CNN's FGI lmao, that's how they keep fooling non-traders to keep betting the house on puts thinking they'll strike big. [https://www.barchart.com/etfs-funds/quotes/SPY/put-call-ratios](https://www.barchart.com/etfs-funds/quotes/SPY/put-call-ratios) [https://www.barchart.com/stocks/quotes/$SPX/put-call-ratios](https://www.barchart.com/stocks/quotes/$SPX/put-call-ratios) [https://www.barchart.com/stocks/quotes/$IUXX/put-call-ratios](https://www.barchart.com/stocks/quotes/$IUXX/put-call-ratios) [https://www.alphaquery.com/stock/DIA/volatility-option-statistics/90-day/put-call-ratio-oi](https://www.alphaquery.com/stock/DIA/volatility-option-statistics/90-day/put-call-ratio-oi)
Good shit on graduating college and saving all that money props to you. My advice is don’t do call or puts that’s basically gambling. Just be smart. Just invest in etf like DIA Spy Voo take divis when they give you and enjoy that 10-20% gain every year. Best of luck
Is DIA taxed as friendly as SPX and NDX?
SPY down 3 days in a row QQQ down 3 days in a row IWM down 3 days in a row DIA down 3 days in a row
really? here's what scares me away as a guy in DIA \-DIA = highly commoditized can be put anywhere "land" - data centers can be put pretty much anywhere so long as theres power and connectivity. IF NOVA is tapped they could just move to other parts of VA or MD or w/e Power - why not just invest in Dominion or Constellation energy What makes you think this business has a unique selling proposition or competitive advantage in the market?
Here’s a freebie - Long TLT Short DIA
What made you trade DIA?
Sometimes, it pays to chase DIA rather than SPY. 🚬
It’s hard to get on board with the permabear narrative for me. Not only are you shorting the most powerful economy in the history of the world in a falling rate environment with tax cuts coming, but investor behavior has changed. When the market crashed after the tariffs were announced, retail traders like me piled in and bought the dip. Millions of dollars flood the market every week from 401K contributions and automatic reinvestments. Traders in 2025 don’t back down and put cash under their mattresses at the first sign of trouble. They’re fearless and not as dumb as they were 10-20 years ago. DIA, SPY, and QQQ are all up 5-15% this year. Why not just sell covered calls on major indexes and sleep well at night?
Hi Sam, thanks for chiming in with some great insights! Yes indeed, markets rise, but that means stocks rise too, because they make up markets, right? So yeah, one could pick any old ETF right now and it'll probably go up "over time." But I think "how much time" becomes the question. Okay, so look at charts and find an ETF that looks flat for the last month or three. Then in x years it should be higher. Or find a chart that's actually going up, and then you the "momentum factor" PLUS the general uptrend of stocks. I see it as just giving yourself all the benefits you can. This just came to me, but kind of like selling a CSP: it's always touted that stocks only do 3 things, and in 2 of those cases the CSP wins. Yes, "most years as a whole the market is up." (Except 2022, and some other examples.) And Yuen touches on that, actually going to the extent of saying that there really haven't been any TWO year bear markets in recent history. So he buys LEAPS 2 years out just for that reason. Because what are the odds of 2 bad years back-to-back? Good point about SPY/DIA probably being safer, but I'm actually long VOO in one of my accounts because it screened in when I did this for myself last weekend. So I'm not averse to an index fund, as long as it meets my criteria for being one of my Top 5 picks. So I think that's the only 'advantage,' just trying to maximize return in a sort of safe-ish way. (Btw, I wouldn't do this on crypto ETFs or marijuana or things like that; but then, the charts actually rule those out.) Yes indeed, more leverage by using ATM or OTM Calls. OTM are what the kids on here like to trade, looking for those lottery-style wins. But that's not what I'm after: I just want 'enough' return that's fairly safe/conservative/repeatable/pick your adjective. 80-delta is a proven(?) or at least accepted sweet spot. By all rights, I should be going even higher, and I'd still get plenty of return. Yuen's method is that BE of purchased Calls be no more than 5% of spot. In my XME example above, that would have me buying the 62C vs. the 70C (numbers are wonky AH, so I can't quote Deltas, but it's in the 90's). But guess what? That would still give leverage of at least 3x. So let XME do 11% again next month, and you're still looking at 33%. Insane leverage these things provide, so no, I don't recommend AT ALL going closer to the money. And you probably know, but for those reading along, you can get more leverage buy using a shorter duration. 100-120 days is sometimes recommended. An 80-ish delta XME Callat 104DTE gives almost 6x leverage. Loss control. Firstly, I've never been one to hold something hoping it comes back. But you're absolutely correct: with any long Call option, you're on a deadline. For stocks and ETFs, I've pretty much always used a 10% Trailing Stop. Invstor's Business Daily, which I've been reading for decades, recommends an 8% stop-loss *from your purchase price*. Mostly to protect you from a bad entry. But then they don't really give a stop-loss recommendation for when the darn thing starts going up. So my 10% kind of morphed from that. And of course, if the thing has gone up some, and is kind of choppy, then I may relax that to 20%.
I like leaps and use them. Another way of looking at this is to note that the market as a whole has always risen over time. If you put your 401k into an index fund you’ll end up with more money in 20 years. So you don’t have to rely on momentum. And, importantly for using leaps, in most years the market as a whole has a positive return. Because of the market’s long track record, it seems safest to buy leaps on SPY or DIA. (I have some on GLD, but that isn’t as safe.) Is there an advantage to using narrower etfs? Another thought: You can take more risk to get more leverage by buying atm calls, or even otm calls. It’s a sliding scale. And a question: what do you do if the underlying etf falls? Use a rule such as sell when down by 50%? Or stick with it? When you own the underlying instead of a leap it’s easy to stick with a losing etf in the hope it will come back. But it’s much riskier to do that with a leap.
I sold my Calls for SPY and DIA yesterday thinking the market needed a reset after a 3 day bull run… after the dip today, and what I think was confirmation of an upswing, I got back in but with limited risk.
Learned lesson from last week. I Made $1,060 profit this week on SPY and DIA and GOT OUT. Goal achieved for week and will wait for right opportunity to jump back in for next week - Let’s see what the jobs report and Friday afternoon market sunset looks like right before close.
Assuming there is no bad news tomorrow, I have SPY and DIA Calls right where I want them
I guess they might. But things still came tumbling down in 2000. But since the tech bubble burst, [index funds have dominated much more](https://global.morningstar.com/en-gb/funds/index-funds-have-officially-won), going from 10% of funds to 50% by 2022. I see it as a trade-off between risk and safety. If you look at the average growth of value funds vs SP500 over the past 5 or 10 years, they're a little lower but not much. That modest difference might be insurance against the Big One. It took much longer (14 years) for QQQ to recover post-2000 bubble than SPY, and DIA (Dow Jones fund) didn't even really fall after 2000. It's like different stock markets. If you had been in QQQ in 1999, you would be losing nominal dollars until 2015, and forget about real dollars and lost growth.
99% chance they were gona announce something else and chickened out which is why they stalled for 45min staring at SPX/NDX/DIA slide down.
!banbet DIA 386.90 30d
GLD weekly is a once a year setup, looks teed up and ready to go. The risk of not being positioned is worse then the risk of losing money. Surprisingly QQQ is relatively close to the mean compared to IWM, DIA, and SPX. I don't remember the last time that happened
Getting obliterated by theta. Since the day you bought spy is down 0.03% and you’ve lost 36.22%. That’s theta decay in action. I don’t recommend holding market wide options (SPY, QQQ, DIA) for longer than a few days especially in the middle of August/september, while at all time highs with bad economic data coming out.