r/tqqq
Rolled up my TQQQ Calls
Author recounts a $50K TQQQ drawdown but continues holding and rolling covered calls to collect high IV premiums.
- High implied volatility provides excellent premiums for writing covered calls.
- Rolling options generates consistent additional income ($0.6 to $1 per contract).
- Core capital is being actively deployed into TQQQ for long-term growth.
- TQQQ suffers from extreme volatility, turning a $24K gain into a $50K loss during a market drop.
- Elevated IV reflects high market risk and the potential for further sharp declines.
I was up about $24K until June 4 when the market dropped by a lot Friday June 5. I took a loss early fortunately around 10:30ish AM, posted that in another comment instead of rolling it down and out. $24K gain turned into almost $50K loss. Started buying TQQQ and writing Calls last Wed, posted that here at the same time. Obviously good premiums given the high IV. Rolled my Calls for next week, got anywhere from $0.6 to $1 in premiums. Let see what happens, if it goes far beyond my strikes I will probably let it get called but who knows. Also got $8700 in SPAXX dividend. Will definitely see that go down next month since I using my core to hold TQQQ. Keep grinding.
How did you get dividend income if you dont take assignment?
Fidelity gives you interest on your core position in SPAXX (this is essentially like a money market account) as “dividend”. It’s really interest on my cash that I keep to cover my CSP.
I just took another look at your numbers. Im doing this with around 25k generating 1-2k /month.
Youre doing this with a mil or so?
Yes several Millions. You are probably generating more alpha than me at that percentage.
Can you attach post 📫
Will you link to your longer post? Looked through your profile but couldn’t find it. Following you for future content, thanks much!
Have you had a larger post of breaking down your process in more detail?
I feel I have answered these perhaps with multiple different post. Have been very transparent even with losses in Feb/March this year. I sell Puts 99% of the time. I would sell Puts on down days targeting between 20-40s Delta. I usually sell weeklies that expire that week or the following week if it’s late Wed onwards. I manage my positions and if it gets close to my strike then I would roll it down and out, usually for a small credit but I have rolled for a debit too. It’s different when you manage it in real time..
Thanks for sharing; I will go through your comments.
So you only do option and don’t hold any tqqq share?
I bought TQQQ on Wed and wrote calls against it. Rolled it for next week in the low to mid 80s. Usually just sellings puts but with the drop, it seemed like a good time to Buy Write.
That’s a good income strategy 💪
https://preview.redd.it/6xplws2ks27h1.jpeg?width=1125&format=pjpg&auto=webp&s=57f3ad739c806fe14aa1fc08c39b50d2ad415dfb
Great idea. Will use this going forward.
Oh, you're doing this in a 401k/IRA? Insanity lol
Yup. Trad IRA, Roth, UTMA, Rollover IRA from 403B and 457, only my employer Roth 401 wouldn’t let me trade options.