Disclaimer: I’m not now, nor have I ever been, a financial advisor. Don’t do what I do just because I do it, I am not responsible for your decisions. Learn and do for yourself, take responsibility for your own decisions.
I like to trade stocks and options. I’ve done it off and on over the years, but I’ve usually had a reason to drain my accounts to pay off unexpected things. But I’ve finally come to a place where I can trade pretty consistently this year. It’s a pretty small account, but still, you start somewhere.
I currently have some shares of SGOV that I use to hold my emergency cash instead of a savings account, as I like the consistent monthly dividends. I am reinvesting those dividends now but I wasn’t for a while. I was using them to help fund my other trading, but I changed my mind.
For my other trading, I focus most on the Wheel Strategy, but I do some other types off and on. I make fairly consistent money with the wheel, but I’m told there are better strategies. Maybe, but I do good with the wheel so far.
Today I experimented.
On DKNG, the RSI was just over the 70 line and I saw that usually when that happens, a week or so later it drops. So I bought the 6/18 and the 6/26 $30 puts and put in close orders for around 25% profit. I got both within a half hour.
I also tried doing a 0 DTE trade on SPX with a put credit spread at market open. I sold the atm put of $7405 and bought the $7390 put for a net credit. I then placed a closing order for a little better than 10% profit. It closed within the hour.
So I made money today. My DKNG covered call was exercised so I made a small profit on the shares and my SoFi covered calls were filled at a loss, but the money I made from the CC’s on DKNG and SoFi, plus the money today, puts me at a net profit.
I don’t know that I will continue doing the 0 DTE PCS, I found it a little more nerve-racking than the wheel strategy.