Safest way to make 1% per month

Discussion in 'Trading' started by tonyf, Sep 1, 2021.

  1. Sig

    Sig

    Not to scale. Installing solar on your house is should cost you $20k for a 10kW system, with 26% back with the ITC bringing you down to $14,800. That will generate at least 12 MWH per year, so if you're paying $120 per MWH that gets you to 10% per year before state level incentives. But, since you're avoiding a cost paid for with after tax dollars, once you've gotten your initial investment back you're getting that return effectively tax free, which would be better than 12% before tax. That's an example of something I would classify as actually low risk, but then you can only put about $15k into it for your average home.
     
    #111     Sep 6, 2021
  2. deaddog

    deaddog

  3. ph1l

    ph1l

    https://roboticinvesting.com/2018/07/16/12-solution-investing-summary/
     
    #113     Sep 6, 2021
  4. destriero

    destriero

    1) He's a Trumper so there is that cognitive-ceiling.

    2) I saw the Greenwich/Madoff prospectus in the summer of 2004. The moment I read "split-strike conversion" I knew he meant synthetic bull verts. The fact that someone was running money without understanding the payoff was surreal, but I didn't look deeply into his history. Now, I didn't cry fraud bc we had just witnessed the internet bubble and were early in the housing crisis. ofc he was exposed before reporting 2008 numbers, but I would have been calling the SEC had I looked into his prior performance.
     
    #114     Sep 6, 2021
    taowave likes this.
  5. rts232

    rts232

    I don't know, I read all the posts here and I really was interested in the topic op decided to go for. I mean, I'm not exactly doing this since 10 years or so, but I am nearing 2 years at least.

    I am a premium seller with options, mostly on equities, sometimes ETFs, but more interestingly futures (CL/NG). I'm not one of the degenerates from reddit's WSB or theta gang - I know how to risk and money manage and I don't like leverage. So, it's not just that I don't leverage, I actually deleverage: Being short vol most of the time, I hold around 0.55 of my bankroll cash as collateral and actively play the corresponding 0.45 of the bankroll as actively used collateral for premium selling mostly on a monthly basis. This is supposed to result in 10-12 waves of trades a year. However, I do operate on the 0.55-cash-collateral, too. Very safely, or at least, as safe as can get, so there actually is some kind of gain on this 0.55-part, too.

    I actually managed some heavy drawdowns in Feb/Mar '21 on short puts this way (upper 30% range on numerous positions) quite ok, so I guess and hope this counts as a risk management which is kind of resilient.

    Now to the 1%/month-thingy: Totally ignoring what comes out of the 0.55-part of the bankroll, I intend to score 1%/month (for the total of the bankroll that is) by way of this strategy, and I must say, that I overachieve - not exactly by far, but still - significantly.

    So, all in all, I guess, this is my take on a 1%/month strategy. But it consumes some time in my case.

    EDIT: Just to add...maybe I sold myself too cheap here. This is indeed delivering way above the 12%-mark/year. All in all, ignoring the fact that 2021/22 were good years, I estimate this approach to deliver close to 20-25%/year pre tax.
     
    Last edited: Sep 8, 2021
    #115     Sep 8, 2021
  6. Alexpung

    Alexpung

    Is it a requirement to have the 1%/month cash flow or average return?

    If cash flow is needed short enough OTM index put so that you have your 1% (until it doesn't work)

    If cash flow is not needed you can just go long equity and leverage/deleverage as necessary
     
    #116     Sep 8, 2021
  7. taowave

    taowave

    There are far easier ways to make 10% per year than trading....

    I do construction loans ,hold first mortgage,clean title,property is collateral and asset to loan value is typically 4-1 or higher...
     
    #117     Sep 8, 2021
  8. tonyf

    tonyf

    Are you looking at syndicating some of that? :)
     
    #118     Sep 8, 2021
  9. taowave

    taowave

    If I had half a brain I would:)

     
    #119     Sep 8, 2021
  10. Sig

    Sig

    Are those loans to contractors or the owner of the thing being constructed?
     
    #120     Sep 8, 2021