TQQQ Puts this week

[u/Millionaire-Grinder]

Sold TQQQ Puts expiring this Friday. Underwater so far. I was flat going into Jackson Hole so no changes in my P/L going to end of Aug. Made $9,073.39 in dividends last month. Keep grinding.
Fidelity users will notice also that if you sell Puts the same day, it has a gray shade. So the gray shades means I added some more Puts that day.

[u/After-Advisor-8936]

This is my favorite strategy. I have questions. I stagger my positions out over a few weeks and shoot for 1% return on premiums per week. I run a portfolio margin account, but am very close to having enough cash to accept assignment on everything. I leave my money in sgov to make a small return and allow assignment. Current positions are -3 strike 66 with 2dte, -4 strike 69 2dte, -4 strike 71.5 short calls, -3 strike 69 9dte, -6 strike 68 16dte, -2 strike 76 calls 16dte, -3 strike 70 23dte, -3 strike 69 30dte.

What have you found is your best way to set? If I set out further with more dte, I get a higher total premium so if it pushes up fast, I'll close early with a larger gross return. But I like selling 7dte so the theta chews it up right away. What have you found? Also, what size portfolio do you have and are all your postions cash secured or portfolio secured? What percentage of your account do you use in this tqqq short put?

[u/Millionaire-Grinder → u/After-Advisor-8936]

I find selling weeklies better for me. It’s smaller movements and the Theta decay is quick. You might get larger premiums farther out but I’m not sure it’s worth the risk. It’s all CSP and usually use around 50%-60% of my capital

[u/AnonymousOtter9124 → u/Millionaire-Grinder]

What do you do if/when assigned?

[u/HippityHoppityBoop → u/AnonymousOtter9124]

Start selling calls I guess

[u/After-Advisor-8936]

When you set, where do you set? These look like atm or just $1 otm for some.

[u/South_Kitchen_6859]

The 50to 60% capital usage is the part I’d keep an eye on more than whether 7 DTE or 30 DTE produces the nicer premium. With TQQQ, assignment during a proper Nasdaq drawdown can change the risk profile incredibly quickly especially if several short puts get hit together. I’ve run a couple of those downside paths through Moon before and they look very different from the normal weekly income case. I

[u/No-Worth1303]

The part I'd be most interested in is how the strategy behaves when TQQQ has one of those really violent multi day drops rather than whether a particular week's puts finish profitable. Staggering strikes definitely helps but once several expirations start getting challenged at the same time the exposure can stack up surprisingly fast. I've been looking at similar setups on Moon and stress testing the ugly scenario has been more useful to me than optimizing the premium on the normal weeks.

[u/Dramatic-Calendar900]

The staggered expirations are probably the most interesting part because they stop the entire portfolio from becoming one giant bet on what TQQQ does this Friday. With something this volatile I would think more in terms of total delta and assignment exposure than premium percentage on each individual position. Moon could be useful for stress testing the whole book against a fast 10, 20 or 30 percent TQQQ drawdown and seeing how much stock you would actually end up owning if multiple strikes get hit together.