I've only been selling covered calls for four months on SCHD but I can consistently pull in at least enough to effectively double the dividend. Like your video, I shoot for 2-3 strikes OTM. I "DRIP" the premium like I do the dividends. We'll see how this goes if the market is more bullish this year. Changing SCHD from a 3.3% to a 5%+ yielder is game changing in the long run, in my opinion. Well worth the little effort it takes.
@goinwitdaflow usually target 30-45 days out. I'm pausing on buying new shares of SCHD though to focus on holding the underlyings instead. Many have more liquid options than SCHD itself.
Good strategy to collect additional 1.5 to 2% by selling OTM Covered call. I just started doing this a month ago; 90 days about 20 delta appears to be a good balance of getting some extra yield and yet keeping the stock safe from assignment by rolling to next cycle when option goes ITM.
With the 3-1 split next month on SCHD, does that change your mind on selling options on it or do you still feel the same way? Do you think the split will cause more volume? Thanks for all you do.
Not really. I will sell a PUT on occasion. I'm happy to add shares. The split might help the volume which would be helpful but I mainly buy and hold SCHD.
Hi Dave, thanks for the great material. I did not understand the 4.62% breakeven calculation. Can you please explain where is it coming from? (74.35-74)/74=0.472% not 4.62%
Hi. (77.95-74.35)/77.95=4.62%. Just a number I tossed in to show the that the breakeven of 74.35 is 4.62% from the current stock price. Trying to give some context to those new to options.
Nice job and liked the side by side comparison. On my long term dividend portfolio I don’t want to wheel it and so sell covered calls strategically much further up and out in time 6 to 9 months even up to a year b/c i am just looking to double my dividend amount and to keep it passive. Enjoying your videos. VYM options chain is a little better than SCHD imo.
Heads up: 30 day avg for VYM is around 900 whereas SCHD is over 2000. Both are low but SCHD has a little more volume. Overall neither are great wheeling options haha. Selling 6-9 month options is a great idea.
I primarily stick to SPY and QQQ when it comes to "options for income". I also use some of the select sector ETFs like XLF, XLK, XLI, XLV, and XLE. For long term holdings I will use VOO and VYM when I'm adding to my portfolio.
@Wealth Adventures SPY and QQQ dividends are low and can be easier absorbed if not taken into account, but the ones that pay 3+% should be a part of the calculation right from the beginning of one's strategy. BTW, do you have a video about naked puts selling, the required options margin requirements and that complicated formula of higher of 25% of something or 15% of something in Fidelity?
@@Reza16888 I have not done much with naked puts on this channel except for a basic intro video. The margin requirements are something I need to get more familiar with... I agree they are not user friendly. Naked calls: ua-cam.com/video/fqYQ20s1PM8/v-deo.html
@@wealthadventures Yes I have been trading options in the form of CC's and selling puts but I have not bought any calls yet. If you could please make a video on it or let me know what you think in the comments I would greatly appreciate it,
Hi Robert. It should be the same. You can use this one but just ask if you run into any issues. docs.google.com/spreadsheets/d/1ZZJBpi0SzjRoyC4oGf_Ku67sl1PDDPGm/edit?usp=sharing&ouid=102399541218928052037&rtpof=true&sd=true
T-Bills are at or over 4% and that "risk" free rate is nice right now to wait and see which way the wind blows in the market. That is my play right now...
why not use the wheel strategy. Sell a put get assigned then sell ccall against the shares. if u are assigned then sell another put and so on. The only right selection is the Delta u choose. I suggest a 40 Delta for selling the put and a 20-30 Delta for call. One drawback is that the assignment cost are a bit higher than the trading costs so I would prefer not to be assigned on the call side.
Sometimes the juice isn’t worth the squeeze. Average joe on UA-cam has been doing a series on this. Big difference over time. Is it better than a part time job where you 100% invest in schd? Probably not.
Man this channel is so undervalued. ❤
Thanks! Nice to hear.
I've only been selling covered calls for four months on SCHD but I can consistently pull in at least enough to effectively double the dividend. Like your video, I shoot for 2-3 strikes OTM. I "DRIP" the premium like I do the dividends. We'll see how this goes if the market is more bullish this year.
Changing SCHD from a 3.3% to a 5%+ yielder is game changing in the long run, in my opinion. Well worth the little effort it takes.
Sounds good. Should work in most cases especially if you look for exit points along the way.
Reviving this thread, I’m curious what is your typical DTE when selling on SCHD?
@goinwitdaflow usually target 30-45 days out. I'm pausing on buying new shares of SCHD though to focus on holding the underlyings instead. Many have more liquid options than SCHD itself.
You are right. I do the same and a combined return of 5% plus is great for income investors.
First time watcher. Like it cause it's realistic nd not scamish. Hope you others are as good.
Thanks! Not a scam but I did do a bitcoin video today. lol.
Lovin’ the wooly winter beard.
Damn thing is turning gray on me!
Hi Dave, I too like and have SCHD. Nice comparisons. Good education for me. Jim
Thanks Jim!
Good strategy to collect additional 1.5 to 2% by selling OTM Covered call. I just started doing this a month ago; 90 days about 20 delta appears to be a good balance of getting some extra yield and yet keeping the stock safe from assignment by rolling to next cycle when option goes ITM.
Like it!
With the 3-1 split next month on SCHD, does that change your mind on selling options on it or do you still feel the same way? Do you think the split will cause more volume? Thanks for all you do.
Not really. I will sell a PUT on occasion. I'm happy to add shares. The split might help the volume which would be helpful but I mainly buy and hold SCHD.
Hi Dave, thanks for the great material. I did not understand the 4.62% breakeven calculation. Can you please explain where is it coming from? (74.35-74)/74=0.472% not 4.62%
Hi. (77.95-74.35)/77.95=4.62%. Just a number I tossed in to show the that the breakeven of 74.35 is 4.62% from the current stock price. Trying to give some context to those new to options.
Nice job and liked the side by side comparison. On my long term dividend portfolio I don’t want to wheel it and so sell covered calls strategically much further up and out in time 6 to 9 months even up to a year b/c i am just looking to double my dividend amount and to keep it passive. Enjoying your videos. VYM options chain is a little better than SCHD imo.
Agree on VYM being a better option... for options.
Heads up: 30 day avg for VYM is around 900 whereas SCHD is over 2000. Both are low but SCHD has a little more volume. Overall neither are great wheeling options haha. Selling 6-9 month options is a great idea.
@@dcgain Thanks DC.
do you think with the split it will be better for covered calls.
Maybe a little. It is up to 62 billion in AUM so probably improving slowly with time and the split makes it more accessible for everyone.
Good info. What is your goto etf for covered calls, puts, and the wheel?
I primarily stick to SPY and QQQ when it comes to "options for income". I also use some of the select sector ETFs like XLF, XLK, XLI, XLV, and XLE. For long term holdings I will use VOO and VYM when I'm adding to my portfolio.
Good comparison of the two different strategies. In general, dividend paying stocks or ETFs make things a little more difficult.
Hi. Some ETFs have great volume like SPY and QQQ. Dividends do add some complexity since you have to watch those ex-dates.
@Wealth Adventures SPY and QQQ dividends are low and can be easier absorbed if not taken into account, but the ones that pay 3+% should be a part of the calculation right from the beginning of one's strategy.
BTW, do you have a video about naked puts selling, the required options margin requirements and that complicated formula of higher of 25% of something or 15% of something in Fidelity?
@@Reza16888 I have not done much with naked puts on this channel except for a basic intro video. The margin requirements are something I need to get more familiar with... I agree they are not user friendly.
Naked calls:
ua-cam.com/video/fqYQ20s1PM8/v-deo.html
Great video I was looking at the options last week thinking the same thing.LOLIf you could only pick 2 funds ETFs or index what would they beVOO SCHD?
I think both VOO and SCHD are great buy and hold ETFs. If you want to keep it simple that is about all you need IMO.
I like to see the price move + or - 2% and then sell a put or call. I like the idea of using puts to acquire SCHD.
Hi. That works!
do you recommend buying schd leaps ? I was thinking about buying 10 contracts. It will only represent 5% of my portfolio. Thanks in advance
I have not looked at LEAPS with SCHD but will take a look. Are you just looking at buying calls?
@@wealthadventures Yes I have been trading options in the form of CC's and selling puts but I have not bought any calls yet. If you could please make a video on it or let me know what you think in the comments I would greatly appreciate it,
@@TrainWithRaheem Will do! Here is video I did about buying calls:
ua-cam.com/video/XAcH1fbvCng/v-deo.html
Can you provide a link to your spreadsheet for ITM and OTM example. Your link is for PUt and CALL only?
Hi Robert. It should be the same. You can use this one but just ask if you run into any issues.
docs.google.com/spreadsheets/d/1ZZJBpi0SzjRoyC4oGf_Ku67sl1PDDPGm/edit?usp=sharing&ouid=102399541218928052037&rtpof=true&sd=true
Your video shows Covered Call Calc (ITM) along side OTM. The link show PUT/CALLS. Can you link the ITM/OTM CALLS spreadsheet? Thanks
@@robertbarry1792 Let me take a look!
T-Bills are at or over 4% and that "risk" free rate is nice right now to wait and see which way the wind blows in the market. That is my play right now...
why not use the wheel strategy. Sell a put get assigned then sell ccall against the shares. if u are assigned then sell another put and so on. The only right selection is the Delta u choose.
I suggest a 40 Delta for selling the put and a 20-30 Delta for call.
One drawback is that the assignment cost are a bit higher than the trading costs so I would prefer not to be assigned on the call side.
Good points. I would start with a put but wanted to show the calls. After looking at it , just not a great choice for options IMO.
I would never use schd for either selling puts or calls. Not enough juice
Agree, by considering the very low I.V. making its options not attractive for selling.
Sometimes the juice isn’t worth the squeeze.
Average joe on UA-cam has been doing a series on this. Big difference over time. Is it better than a part time job where you 100% invest in schd? Probably not.
@@masoncnc I’d rather sell calls on spy or qqq if you want to choose an index
Somewhere at Brown University they will try to call this material racist, and sue for equity.
80K per year to attend Brown... They have to recoup that for the students!