I've posted before about why invest in $OVL when its cheap and easy to copy the strategy. To test my hypothesis (because I may be wrong, that's why we have a community), I've started implementing a similar strategy to OVL to see how it pans out. This will be different for some people, because I have portfolio margin (which not everyone has) so please dont try to copy these trades. I'm not going to post them the day thay I make them, to make sure less experienced traders can't follow. On Monday, I sold an $SPY$650 Put, expiring 6/24. I collected $.80 premium. Every Monday, I'll sell a new Put 4 weeks out, so every 4 weeks they'll expire, and so I'll always have 4 trades on the table. This trade costs me about $6500 in buying power. If you dont have portfolio margin, you would trade a put credit spread (which is exactly what $OVL does) and collect a smaller premium. Having 4 trades on the table will cost me about $26,000 - $30,000 depending on the strikes, and should generate about $3500 - $4000 per year in premium. To generate that premium with $OVL, you'd need about $40,000. A picture of the trade is attached. Lets see how it goes!
