SPY has increased over 300% from 2009- 2019, thats ~30% a year!! since the market is upward biased since it began like century ago, l have sold 2 put ratio spreads in spy,june 14th expiration, last Friday, 279p x-2 277p @-1.45 credit. if it gets assigned, l am long at ~273.58 (after initial credit and full credit from the $2 wide debit spread 279p x-1 277p). l will then plan to be much less aggressive in selling calls or call ratio spreads (preferred as it has a higher max profit than just a naked call. same thinking for selling put ratios as opposed to naked puts.) or l could just leave it to the gods after l do long SPY at a discount. thoughts? and what is the annual dividends in SPY?
Have you ever asked why? Also the 30% per year quote is a bad quote. You don't average returns like that. The current 10 year return is ~15.9% per year. I would be cautious longing into this market via something like SPY. It has every sign of turning around. Once PPT gets tired of artificially inflating the indexes and boomers start withdrawing their capital we will probably see DOW 18k again. We are currently looking at a blast furnace that even the fed is having trouble slowing down. It's a shame more people dont pay attention to ol' Benjamin Graham and his sage advice...
If you are so confident back in 2009, you are better off buying SPY options instead of doing spreads or selling puts. Investing/trading using the rear view mirror can sometimes be misleading.
use the correct terminology. a naked put is when you sell a put and are not short the stock at the same time. you obviously meant to buy puts.
That (300%) is from the intraday low of the worst day in 2009. Not really relevant. And I guess compounding makes it much less than 30% per year?