SPYM
Tradr 2X Long SPY Monthly ETF
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fair VOO fees are low but SPYM is even lower
I think my first question is what really is your taste for risk (i.e. risk tolerance). The headline says "without taking too much risk", but then you mention about growing it more aggressively. Being that you're 22 and you have more than 30 years of investing time, you should be able to lean towards being more aggressive. In general you could have the core of your portfolio be something like VOO or SPYM (same S&P 500 index, but slightly cheaper expense) and then sprinkle in some more aggressive plays like a sector/category you think will do well (i.e. SMH or SOXX for Semiconductors) or some individual stocks.
Yes, it would almost certainly make sense. It's a 30 bp difference (and hopefully you're holding your gold in a tax-advantaged account since it's not eligible for long-term capital gains treatment in taxable, which would make the exchange frictionless). It's a lot like SPY/SPYM: GLD is older and has an active options chain (GLDM does not have an options chain at all), but for buy-and-hold, GLDM is superior in every way. Also consider IAUM, which has a 1 bp lower expense ration compared to GLDM (though at that point it's splitting hairs).
I’d recommend skipping the prudential advisor and any financial advisor. They’ll just eat up your cash on fees. Skip the annuity. Open an account with Schwab, Fidelity, or E*Trade. Without knowing your investment objective, risk tolerance, time horizon, conservatively, if you need a $1,000/month for living expenses, you can put $300k in a HYSA that gives 4% interest (at least for the time being while you can still get 4%). Invest the rest in SPYM (smaller expense ratio than SPY), VTI, QQQ, or a combo of these. Set it up for dividend reinvestment.
APPL, TSM, NVDA, MU👍 If you plan to hold for long periods of time QQQM/SPYM > QQQ/SPY
SPYM, stick to ETFs not individual stocks. Thank yourself in 20+ years.
That would still be FXAIX, which is a Fidelity mutual fund tracking the S&P 500. VOO (along with SPYM; both track the S&P 500) trade in shares, but you can trade as little as 1/1000 of a share with Fidelity and can enter orders in dollars (it may need to round to the nearest 1/1000 of a share, but with SPYM especially that will be $0.08 increments.
If you want passive income check r/dividends but really you should build your emergency fund then start putting money in Roth and buying SPYM.
>My local jewelers stop accepting silver at $115+/oz…. And it’s now ~$70/oz. It will get back to $115 an ounce before it goes to zero All good - just keep in mind the guy said he's wanting to invest something like $300k "for the long term" if he invested in SPY (0.09% fee) vs SPYM (0.02% fee) assuming a 25 yr investment - compounded with average return of 9% per year vs 8.93% per year would be a difference of about ~$48,000 after 25 yrs. You act like the difference is miniscule but - that's a lot. Its literally enough to buy a decent car these days. (Might be a cheap used car in 2051?)
I own a tiny bit of silver (less than $1000 worth) But I don't plan on selling it during a flash - "crash" Sure it sucks to lose a few percent - so what? If you believe in its value you either sell before it crashes or you wait to see if it rebounds. Those guys trying to sell at the peak might be glad their limit orders didn't get filled. When Chinese new years ends next week - it might just peak a little higher than jan 26-27th levels (I hate Ray dalio. He's a big china bull and not my type of investor. (I'm china perma-bear) But I read something he said about precious metals - general idea was everyone should own between 2-3% in silver and 4-5% in gold / or some.variation of that. I totally disregard his china stance, but I kind of agree with the idea that precious metals should be part of a portfolio - and ride the wave. I'm not looking to sell those. Just hold till I'm 60+ (similar to SPYM - not looking for liquidity - looking to hold for a long time) if I want liquidity I buy spy or VOO. For trading But investing I don't need 8x the liquidity I am not going to sell unless my wife gets cancer and my insurance refuses to pay for the meds
Bro if losing $790 on TSLZ ETF and trying to breakeven is hard yours is like building a spaceship that travels FTL. That’s the way I put it. But if you can wait thousands to millions of years, just put it all on SPYM or SCHG ETF and you’ll breakeven 😂
Everytime I put in a limit order for SPYM at the market price - it fills in seconds (or immediately) - its not like we are talking about some penny stock. Its the low expense ratio version of sp500. Its fine.
Still dumb. If you want sp500 go SPYM for the lowest expense ratio (But hedge it with some international funds like FRDM and IEFA)
SPYM is cheaper than VOO or VTI.
SPYM better version of VOO but beats both voo and vti coz of lower er.
Could you explain the investment strategy and goal? Especially if this is a multi-decade investment horizon, SCHD and SCHH in particular are strange choice. Dividends should not generally be a focal point of a long term buy and hold strategy. Further, you hold VT, SPYM, and IXUS. In this structure, it looks like you’ve just constructed VT with extra steps and a greater expense ratio than necessary. Now there is actual merit to AVUV. However, to explain this we need to examine something called the five factors. This is something I am not qualified to explain myself and I will link a good video to it below. HOWEVER, in your case and in the nicest way possible, I don’t think YOU even know why you are considering AVUV. https://youtu.be/jKWbW7Wgm0w?si=bEOUZaF8xeW0RF6k The crypto funds… Again, I have to ask why you want these. What are these achieving that you don’t get from stocks? Are these just an attempt at diversification or held for another reason? Also people are talking about bonds bad in reference to your SGOV allocation. They make little sense here considering the high risk profile of the rest of the portfolio. Typically, investments in cash or bonds are used to lower a portfolio’s risk profile. You’re trading returns for safety. Even at a 5% yield, this is not a great decision. This video gets into it here. https://youtu.be/KdzOlRRHOU8?si=XXViK6zbiFVz9pXb Lastly, could you please explain your investment goal and/or how you even got to this set of funds? I would like to know the story here.
SPYM is cheaper at 0.02% but lower AUM and trade volume especially during pre and post market so tracking errors may be higher. VOO is 0.03%.
If you want 1 fund, VT is the way to go. If you want to be able to balance your international exposure then consider 2 funds - VTI and VXUX. If you do decide you want an S&P 500 fund as your only holding then consider SPYM as it has a marginally lower ER ratio than VOO (0.02 vs 0.03).
The large cap Russell 1000 (=S&P 500 + mid cap S&P 400 + 100 largest S&P small caps) has slightly outperformed the s&P 500 in select 30-40 year periods. However the fees are usually a bit more. There may be some slight differences in terms of when a mid cap gets added to especially the S&P 500, but probably not that significant mathematically. The long term chart of SPTM (S&P 1500) is close to SPY and SPYM (SPDRs S&P 500 ETFs), .. but ITOT (iShares S&P completion index of 2200-2300 stocks ~ “S&P 2250”ish) lags a little. Now if all small caps roar back ITOT will probably soar, but also think it’ll be short-lived.
Buy SPYM and QQQM and leave it
A good app to track ETFs and Stocks is the Google Finance app. It also has sections containing currency rates and foreign markets. Pretty intuitive... and updates on the fly. As for VTI, it tracks very similarly to VOO, which is a Vanguard fund containing the top 500 largest companies. Some brokerages have their own version. Many prefer SPYM, which is the same as VOO but it's a tiny bit cheaper. VTI is great though. As for the turbulent times ahead...He's likely to get crushed during the midterms... so have faith.
Thanks for the insights! Yeah exactly what i was thinking. I would feel comfortable having multiple contracts, bought at different times on SPYM. But even just one Leaps on SPY would stress me out, too high percentage of my account allocated to one contract.. buying more Leaps when the right opportunity comes would not be an option
The bid-ask spread sucks, the expiration selection sucks, but I still trade it. It allows me to respond to changes in volatility, and scale in and out over time. I stick close to the money when selling puts because in SPYM 1) its smallness allows me to take a closer delta, whereas I get really nervous with SPY and tend to do deltas in the teens or 20s 2) I intend to get assigned, so being near the money is fine 3) assignment means less churn against that bad bid-ask. I don’t want to trade in and out of it, roll and manage, and get shredded by the bid-ask. The bid-ask of the ITM calls isn’t great but they aren’t awful. I’d say it’s worth it in the sense that the bid-ask is kind of the extra insurance you pay for staying small and manageable, and being able to scale in more heavily when the price drops. And if you can scale, your timing doesn’t have to be as perfect as it is with a large SPY trade.
i dunno how to explain this properly, it's 0.03% of your total amount in the account. so say u have $10000 invested, they charge $3.00 every month. In my Vanguard account, under Fees, you can see those transactions. (i have similar mutual fund, not etfs). Rest assured, picking VOO, VTI, SPYM is THE best way to invest, u don't worry abut the ups & downs of stock market, & you can SLEEP @ night. It took me years to realize this. i hope u find my comments helpful. Good luck
or just buy VOO, VTI, SPYM
First of all, diversify your portfolio. If you're not a seasoned investor, don't put all your money into individual stocks. When you buy an S&P 500 index fund, you're essentially buying 500 top U.S. companies in proportion to their market caps. At a given time, some of them go down, some go up, and the net is usually positive over a longer time period. That’s why people say “VOO and chill.” 50% of my holdings are in SPYM. I try to buy 5 units of SPYM every time it drops 0.5% or more. That’s my way of DCA-ing. My remaining 50% is allocated to individual stocks. Even there, I try not to concentrate too heavily in a single sector. Of course, tech is the most lucrative, but I still try to spread my positions across 4 different sectors at a time. I also don’t buy anything I don’t understand. A recent example is precious metals like silver, or crypto a few years back. I understood they worked as a hedge, but I didn’t understand why they kept going up after a certain level. When something goes too high and most people can’t explain *why*, you know a correction is imminent. That’s why people say not to buy at an all‑time high. All the stocks you mentioned are very volatile, and they’ll probably go back up again. But if you hold positions in such names, you need to be able to stomach days like Friday. Work on your risk‑management strategy, and if you care about your money, diversify and take smaller wins.
I just started stock picking. It’s fun and can be quite profitable. If you do some research. But most of it should be in broad market indexes. SPYM, VOO, QQQM, or I also like a “Growth ETF” SCHG, which is cheap. VT, VXUS, VEA, VWO are also popular for international. You are young, so bonds don’t make as much sense. Getting exposure to gold or silver will likely do good this year and next. Frankly, as long as Trump is president.
And for the lady? Perhaps some shares of SPYM? Mhm 🙂. Perhaps not, I’ll have 10,000 0dte calls and 10 futures contracts
And for the lady, perhaps some shares of SPYM? Mmhmm 🙂 perhaps not. I’ll have 10,000 contracts of GOOGL 420 leaps expiring in 2027 with a side of 2,000 contracts of 0dte SPY calls
At your age, I agree with the suggestion that you should be 100% in stocks, not the lesser % as you are now. (The stock allocation of the target date fund is not provided). Given your high risk tolerance, "Yes" liquidate the target date fund in favor of stocks or the SPYM position. From your post, I think you have multiple objectives that have the potential to compete against one another. I believe your objectives are: 1) Retain some firepower for opportunities that arise, e.g. significant downturn in the equities markets. 2) Diversify into asset classes other than equities, e.g. precious metals. 3) Seek the highest possible return over the long-term. Objective #3 may compete against Objective #1 because not being a 100% invested at all times will result in underperformance in a bull market. Not this past year, but in previous years Objective #3 competed against Objective #2 because precious metals did not appreciate in value as much as stocks. I think Objectives 1 and 2 are sound, and that Objective #3 needs to be in balance with your tolerances for loss, which seem pretty high. Unless your precious metals position is via an ETF, precious metal positions are not as liquid as you might need to rapidly respond a changing market condition. To satisfy all of these objectives, I would first consider investments and a capital allocation into each that will provide you a fairly safe and solid return, while also affording you good liquidity to seize opportunities. For example, 70% SPYM, 20% precious metals ETF, 10% cash. You would then actively manage your portfolio, via limit orders, protective stops/trailing stops to take profit, invest and restore your cash reserves, and respond to change. Research-wise I would focus on materials that provide trading strategies, particularly those for trading highs and lows in the equities markets. I love to trade market highs and lows as a hobby. Very best wishes!
Not that different imo. You can always just have both but overall I don't think it'd matter much for long term. If you find SPYM easier to regularly buy, then it might be a better fit for you.
You can do SPYM if you like. Lower expense ratio.
I see the main advantage of SPYM being a lower price point is mentally helpful for small accounts. More shares feels good and don’t have to worry about fractional shares.
They are Identical. Voo 14.85 CAGR to SPYM 14.77 CAGR. Either is fine... Find other ways to make money than worrying about Identical funds. And ER means Nothing!
**First:** set up a Roth IRA (not a traditional IRA) and put the money in there. Do that today, regardless. Then, either buy SPYM or better, buy UPRO, which is a 3x leveraged ETF that follows the S&P 500. Important: if buying a leveraged ETF like UPRO, set a 10% ***trailing*** stop loss, so if UPRO falls by 10% from the highest point since you bought it, it will automatically sell. When you get stopped out, wait till the market is trending up again to rebuy. ## Expected Value SPY: In 25 years, that $400 would reasonably be $4000 if invested in SPYM (10% a year over time, and not bothering to jump out with stop loss orders). UPRO: Being leveraged, UPRO could improve upon that, so that after 25 years $400 could be $50,000 to $170,000. But this is assuming that you are using good risk management, jumping out with stop loss orders to avoid the major drawdowns and jumping back in with uptrends, and are in a tax advantaged account like a Roth IRA. ## Better Plan Either way, the above is a "set it and forget it" approach. If you want to be more hands on, then read "How to Make Money in Stocks" by O'Neil, and invest in growth stocks. Also, do as much as you can inside your Roth IRA. Good Luck.
I recently learned about SPYM instead of VOO… .02 expense and a much lower price which is helpful for smaller accounts.
Do you mind telling me how old you are? Assuming you’re young, you don’t need much to make a huge difference. I’m going to leave what id do. Buy SPYM and SCHG that’s the s&p 500 and US Growth Index both are very cheap (low expense ratio) and will make you very wealthy if you hold onto them. I’d say 40/60 for each SPYM and SCHG. Buy in a RothIRA for maximum total return through Fidelity or Schwab. At such a young age your biggest asset is time and the ability for your money to compound massively over time. $1 from age 18 -> 60 is $120!
I actually did SPYM but said VOO since it's more recognized. In hindsight, most people on this sub probably know SPYM is so I'll update it.
You definitely need to simplify, buy SPYM and SCHG that’s the s&p 500 and US Growth Index both are very cheap (low expense ratio) and will make you very wealthy if you hold onto them. I’d say 40/60 for each SPYM and SCHG. Buy in a RothIRA for maximum total return through Fidelity or Schwab. At a young age your biggest asset is time and the ability for your money to compound massively over time. $1 from age 28 -> 60 is ~$50!
Happy birthday! Congrats :) your age is a huge advantage for you. For the retirement savings, buy SPYM and SCHG that’s the s&p 500 and US Growth Index both are very cheap (low expense ratio) and will make you very wealthy if you hold onto them. I’d say 40/60 for each SPYM and SCHG. Buy in a RothIRA for maximum total return through Fidelity or Schwab. At such a young age your biggest asset is time and the ability for your money to compound massively over time. $1 from age 18 -> 60 is $120! *You do need taxable income to fund a RothIRA, which it seems you have!
SPYM and chill, how many amzn stocks you got remaining?
If you buy SPYM - it has the lowest fee of all SP500 ETFs and it also has the lowest shares price ($80 approx) So it is exactly the same as VOO or IVV or any other sp500 fund except their shares are a lower price.
They're all the same so it doesn't matter. Pick the one with the lowest expense ratio, VOO or SPYM.
Just a heads ups, SPLG is now SPYM!
\> "what's the point?" If you can't beat the S&P500 with your equities, yes, you are doing it wrong. Just buy VOO/IVV/SPYM. But also, you have to include your cash in your calculations of your portfolio return. Obviously if you are 99% cash and your portfolio beats VOO for the other 1%, that's not saying much.
I use SPYM the fee is 0.02% while VOO is 0.03%.
SPYM is solid, but don’t forget to check long-term performance too! Sometimes the cheap option isn’t the best in the long run!
VOO is the S&P500, as is SPYM and FXAIX. VTI is the total US market by weight, which is close to the S&P500, but not identical.
idk, SPYM's a solid choice for low costs! Just make sure you know its tracking method before diving in!!
I’d go with SPYM if your broker doesn’t allow the purchase of fractional shares and you aren’t able to purchase whole shares of VOO.
They track the exact same index. Functionally identical, SPY has an expense ratio of .09% and VOO is .03%. Thus the slight edge to VOO, IVV, and SPYM. SPYM is .02% but lower trading volume and wider price spreads. In other words be careful with SPYM market orders, better to use limit order to be safe.
SPYM for the lowest expense ratio and cheap price per share
Next time, just buy the market. Buy SPYM and QQQM. Scale in and average down every 5% drop or so. The market always goes up. It's simple inflation. After you've built a larger position, lift a little when you get 15-20% over the 200 day average, but never sell out. ABB...always be buying, just not the highs. I start buying around 4% (SPYM)-5% (QQQM) over the 200, and add on every 4-5% drop from there on down. Good luck!
Look - I do think you're getting \*wrecked\* by some of the comments, but they're also not wrong. You're background whining about more or less being an incel and 'woe is me,' before the market losses, and I get it - life can be a bitch. However: 1. You're young. You've got plenty of time to improve your life and to make better choices. 2. You're employed. A ton of people aren't - a someone who has been hiring in tech over the past years, it's been damned obvious the entire market (including hiring in AI unless you have a \*very\* special/unique pedigree (e.g. leaving Deepmind or a few others) has been utter crap for at least 3 years now. 4 years ago, couldn't get submissions. 2.5-3 years ago would get 300 submissions in 2-3 days. Make yourself seen in a \*useful\* way at work. 3. I see you've already posted about 'maybe coming back in a bit and trying again' - this doesn't sound like 'lesson learned,' it sounds like 'once I have enough money to gamble, I'll do it again.' It's your call, but hey, S&P is up 18% or so and VXUS even more - you could have taken the cash, or profits and dumped 90% of it into VTI or SPYM/VOO and VXUS or DFIV and had - <something>. I won't even ask if you've got retirement accounts, but there's a reason for the mantra of emergency savings, pay off high interest debts, max retirement allocations, etc. before brokerage or trading accounts. RE: no friends, no dates, blah blah. Try to take a look at yourself from the outside. Are you obsessed with trading that any convos you have are about that, or do you actually listen to other people? Do you give monologues or actually interact when you engage with others? Do you bathe, shave, wear clean clothes, etc. ? These are all things you can work on. Look at Meetup groups or equivalents, hopefully for something besides options trading. Get out of the house/apartment/etc. It's ALL work, man, but the endless 'woe is me' is a self-perpetuating cycle, and even real friends can get tired of hearing about it if everything they get from you is negatives. You can take lessons from the past, but nothing good comes of obsessing over it as it can't be changed, but you can change in how you look at things, and plans for the future. If you want to jump back on the options train, how about limiting it to for example, 10% of your holdings max, no matter what happens? It's all on you if you take any sane lessons away from this, and use it to improve your own future, or stay in the 'woe is me, maybe I get fired, no one likes me' mentality. And you're not the only one - many of us have had serious ups and downs in their lives, and had to 'adjust' as to 'now what?' I've moved across 10 states or so not knowing a soul - a whole lot of lonely 'new starts from scratch' with accompanying moments of loneliness and 'wtf am I doing?' at times. Came damned close to losing a house, temporarily lost a career in one of the big crashes, but you don't give up - you take the lumps, the lessons learned, and move the F on. Good luck!
Why buy calls on SPYM? Why are you concerned about notional with a long call? Unless you plan to hold to expiration, notional exposure isn’t something you need to worry about.Much better off buying calls on SPY or SPX
2 calls on SPYM@75 expiring Jan 28 give 2*0,731*8122~=11800 of exposure to S&P 500 returns. If I can buy it at 1140 each, it would be ~9600 left to withdraw after selling ~11800 worth of S&P 500 ETFs. Assuming prime rate at 6.75% by the end of the term I will have to come up with 11000 dollars to buy back the stock + whatever the option is worth at that time. If S&P 500 declines more than 7ish%(1-11000/11800) I will buy back more than I sold to fund options and withdrawal. I am perfectly happy with that, even though I nominally lost money. If it declines less than 7ish% or grows, options will have enough value at expiration to make my 11k buy as much as I sold for 11800. Feel free to correct me here cause I only accounted for delta as it is ITM option. The big question of course is whether I get that good of an execution on SPYM. That's why I am asking for alternatives here.
I have UCITS fund - ticker I500.AS, it is more tax-efficient in my position(I am not in the US). Option will definitely be on the US markets. My plan was to have it in single position that would be ATM as it is supposed to be the sweet spot between decay and amount of capital. Are you suggesting going out of the money to lower delta instead of having lower notional value(e.g $80 SPYM vs $690 SPY)?
I will try to play with SPYM orders tomorrow to see whether I can get fair execution. Just looking for alternatives if it fails.
You can just buy an S&P500 index fund like SPYM, and it is most likely out growing them immediately.
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)
at 19 you should prioritize growth and dont spend alot of time trying to learn to trade stocks or become some.master investor. you can buy and hold any legit index fund like VOO or SPYM or QQQM or VTI and be just fine for a long time in the mean time - just focus on increasing your earning potential so you can save more. and learn to save. like really save if you can start now and save X% every week with a plan to increase that percent every year - you will be very ready for retirement compared to your peers
Just gonna play ETFs man $SPYM for long term calls $SPYI for BTFD moments
Let’s take a break cause you’re getting yourself caught up in the rat race of traders. I just sat down with my mom to break down a manageable time horizon and allocation plan, my mother was freaking out because she’s 60 and still has 20 (now 18) years on her mortgage, she obviously doesn’t want to work full till 78, but after mathing everything out, she can theoretically retire now (high risk) or fully retire in 3 years (paid off all obligations w/early pull available). It’s been rough since her husband/my father passed, but taking the time to slow down and build a picture really helps put into reference where you really are. Theoretically if you invest all that into SPYM/VOO, you have an annual wage which matches median salary (after tax). You’re doing fine, take a breather for a moment because stress will only shorten your time.
25yo student with no job. I have had a portfolio since 2023. I was given most of this by my father and don’t know where to start looking for advice. I bought VTI, VXUS, and BND after reading about 3 fund portfolios. What do I move around? Need to maximize growth so I can afford food while in school. Can’t afford much risk now. KO 2 shares SLV 1 share PFE 50 shares bought by grandfather in the 1960s SPYM 3 shares since I can’t buy fractional VOO VOO 38 shares BND 2 shares have not made money VXUS 2 shares VTI 3 shares
Just wait for a decent-to-large dip, the buy $SPY/$SPYM/$SPYI LEAPs and never have to work ever again
SPYM is lower fees than VOO
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.
Finally someone else on the SPLG/SPYM train lol.
SPYM has an even lower expense ratio
SPYM's inception was 2005. SPY's inception was 1993. So it's newer than SPY. First to market for funds tracking the same index is a huge advantage in volume, and thus liquidity.
Thanks, found a site that visualizes this much more clearly for me and I get what you’re saying now, good call on dividends too, forgot to factor. SPYM isn’t really new afaik, you might know it under its old name which iirc was like SPLG or something.
TIL that **SPYM** is a thing and that it even has LEAPS calls. First I've ever heard of it. The horrendous spread has more to do with SPYM being a newer fund than SPY and not widely traded than anything else. The Jan 28 call chain's total volume on Friday didn't even come close to breaking 100 contracts. > So S&P500 returns 8% over the course of a little over a year and I’m winning here? No. You forgot to add in the dividends that SPYM shares would pay over that time period. You don't get dividends if you hold calls. You are also assuming you will hold to expiration and then exercise, which isn't necessarily the most cost-effective strategy. Not to mention the uncertainty of what value you'd get out of the shares once you exercise the call. Nor the cash cost of the exercise. > What I’m not exactly figuring here though while getting over 8% CAGR That's not CAGR. CAGR is compounded, what you calculated is a simple return. "Amplified downside" isn't path-dependent under your assumption of exercising at expiration. That only applies if you sell the call before expiration. However, risk of ruin does apply. You literally lose your entire investment in the call if you wait until expiration to exercise and the stock price is at or below the strike price. Indeed, any expiration stock price below your breakeven is a net loss under that assumption. So since it is unlikely that you would lose your entire investment if you spend the same $3,390 dollar amount to buy a few shares, the call has more risk of ruin on the downside in comparison to equal dollars in shares.
I’m exploring options for cheap leverage and looking into leaps and want to make sure math is right and I understand everything here. Can only afford cheaper less liquid ones right now which makes me reluctant but for the hell of it I’m calculating breakeven even if I get murdered on bid ask spread. Long term goal is in my retirement account to leverage returns on the S&P500 on super long term leap options then just rinse and repeat year after year figuring if long term returns are moderately positive my returns will be and slightly amplified. So here’s the math I got and not so certain on. Date- 1/15/27, strike, 50, bid $29.50, ask 33.90, SPYM price $80.30. Like I said murderous spread but don’t have $60k lying around to buy SPY leaps lol. So here’s the math I got just taking the ask at $33.90 and breakeven 7.7%ish so 8% beats owning the stock I think. SPYM 8% increase- $86.724, owning the stock 8% gain obviously. Option- total cost $3,390, profit= $86.72- $50 strike= $36.72 x 100=$3,672.00- $3,390=$282.00 ROI $282/$3390=8.3% a .3% win. So S&P500 returns 8% over the course of a little over a year and I’m winning here? Would definitely try to get lower than that ask price but seems like a bet I’d be willing to take year after year for 20+ years and come out ahead. What I’m not exactly figuring here though while getting over 8% CAGR in the long run feels like a good bet I’m not exactly sure how amplified my downturns are and if I still manage to lose compared to just buying the stock due to amplifying downside even if the long run CAGR is over 8%.
Like people are saying, put it into the S&P (VOO, SPYM, SPYG, VII, pick your poison, it’s all basically the same thing for you rn, pretty much anything vanguard or state street is pretty solid imo) don’t try active investing, for the love of god please don’t, you need to spend a lot more time understanding economics and learning how price movement and all this other crap works, for right now you are just putting your pile of money into a bigger pile of money and getting a little off the top for your contribution when someone else puts their pile in.
Just invest $ 100 per paycheck to an S&P 500 fund like SPYM or FZRzoX( if Fidelity account). Then gradually scale to 500 a month and beyond. Let it grow. Then add NASDAQ etf luke SCHG or QQQM maybe 80% S&P /20 % NASDAQ. Buy regularly so it removes emotion from the equation. Best of luck!
unwind all of that fuck-ass trades and park your savings in SPYM. buy every month. don't sell. thank me later
SPYM or VOO 60% - s&p 500 VEA or SCHF 40% - developed international no china
1) 70% VTI (broad US market) or SPYM (S&P 500, US large cap - pick whether you want the whole market or just large companies, either is a defensible choice) 2) 20% FIVA, IVLU, VYMI or DFIV - international value large caps 3) 10% AVDV or DISV - international value small/mid caps
Yeah so a contract is 100 shares normally - that is basically Day 1 knowledge. These platforms don’t allow you to trade margin or option trade (generally) without going through verification or manually turning it on, they have multiple risk warnings but these platforms are not designed to teach you, they are merely tools, not classes. With that being said, since you knew , let me tell you everything I’ve learned . Options are normally 100 shares per contract but you do not pay for the 100 shares unless you execute the contract, you merely pay a premium to hold the right to buy 100 shares. With that being said , stocks split and reverse split causing the options to get confusing at time . The tickers may have a number next to them indicating some sort of split or change with the shares or “multiplier” with that contract. Not all contract adjust to the stock split when the split occurs, the amount of shares you get may be multiples or reduced once the contract is actually executed, this threw me a few times. 1. Do not buy out the money. There is zero need when you can find contract In the money or even. Out the money means your buying outside your stone (purchase) point and in the money means your buying in profit or even. Trading high priced companies leads to high premiums and lots of OTM contracts unless you have a big wad. Trading smaller price companies you can usually find ITM contracts and there less volatile (generally) with less upfront investment, 2. Do not invest in foreign companies in unstable countries/continents. Prime example: Brazil , there currency fluctuates and that easily adjusts the value of your option. 3. Only play companies your willing to hold, buy low , sell hell, don’t get greedy. 4. Far expiration dates cost more but are safer . Short expiration dates cost less and are riskier . Buying ITM allows you to purchase long or short without worry of Theta (contract decay). 5. 5% of your portfolio go into options at most to start . Use play money tools to try it out before even dipping 5% in. 6. Shares you can hold forever , contracts expire . Shares will always be safer, options pay more. 7. Never bet against SPY. I tried too many times and that shet hardly goes down and always goes up. 8. If you play SPY options , use SPYM , it’s cheaper and less volatile.
I have my credit card rewards paying into a trading account. I get a few bucks a month and I use the money to buy shares in SPYM. It's not much in any month, but it's adding up!
Could do SPYM although the liquidity on LEAPS isn't great.
First, a quick correction on XSP: It is 1/10th of the SPX Index, not 1/10th of SPY. Since SPY is also roughly 1/10th of the index, XSP and SPY trade at similar price levels (\~$600 range), which is why the premiums are identical. For a true 'cheaper' alternative, look at **SPLG/SPYM** (SPDR Portfolio S&P 500 ETF). * It tracks the exact same index (S&P 500). * The share price is roughly $80 (vs SPY's $680) * A 0.80 Delta LEAP on SPLG will cost you roughly **1/9th** of the capital compared to SPY. It’s the most capital-efficient way to get long S&P 500 exposure if you are priced out of SPY contracts.
$SPYM has long dated options. Bid/ask spread is pretty wide, hopefully it improves over time
Splitting hairs here, but I’d go with SPYM if you’re holding long term as VOO is 50% higher expense fee. Those fees really add up over time with a larger holding.
Gonna be spamming SPYM. Got my ass kicked chasing FOMO picks a few years back and learned my lesson, just gonna trust the process and do the good ole DCA
This. The premiums on SPY are shit most of the time. If you are going to write puts do it when vix is elevated which naturally increases the risk of assignment if you don't time it right. And use SPYM instead of SPY because you can actually size properly instead of dropping 68k into a CSP which is not the most effective use of capital
Holding Comcast , Novo, and Sony . While rolling SPYM puts week by week. Imma get screwed in every direction. I’m my own Ponzi
I use SPYM . Less risk less reward . Easier to manage and options are always ITM from the start for a low entry.
Value Plays: CMCSA | SONY | NVO | IRDM | SAN | MFG | ITUB | NU | OTC: NTDOY Nfa I just love these freakin stocks man. All about those net revenues right here. Also puts on SPYM as leverage.
That’s why you buy ITM.. SPYM at the highs today printed like a machine. Bought /Sold same day with a few days till expiration. No need to buy OTM, small profits are better than none. 🪦
My SPYM puts and UVIX printing… Sorry bulls. Christmas is canceled for at least today.