| Rank | Strategy | Income | Consistency | Risk | Overall |
|---|---|---|---|---|---|
| #1 | Covered Calls (21–30D, ~15% OTM) | High | Extremely High | Moderate | BEST overall |
| #2 | Put Credit Spreads (21–63D, ~12–15% OTM, 5% wide) | Medium | Very High | Low | BEST risk-adjusted |
| #3 | Cash-Secured Puts (21–45D, ~10–12% OTM) | Highest | High | Moderate-High | Good |
| #4 | Collars | Low | High | Very Low | Safest |
Optimal parameters (from grid backtest)
Covered calls (roll at expiry, non-overlapping cycles)
Most consistent option-income: ~21 trading days (~1 month), 15% OTM
- Positive net option-income cycles: ~98.4% (highest in the grid)
At latest close QQQ ≈ $616.28:
- Sell ~21D call @ ~15% OTM ⇒ strike ≈ $708.72 (≈ $709)
Best “balanced” (still very consistent, more premium): 30D, 15% OTM
- Positive cycles: ~97.7%
Put credit spreads (defined risk, 5% wide)
(Width = 5% of spot. At $616, width ≈ $30.81.)
Most consistent: 21D, short put 15% OTM, 5% wide
- Positive cycles: ~97.7% (top)
At $616.28:
- Sell put ≈ $523.84 (≈ $524)
- Buy put ≈ $493.02 (≈ $493)
Best risk-adjusted (smoother per unit risk in the grid): 63D, 15% OTM, 5% wide
- Positive cycles: ~96.1%, but better “return per risk” stability than shorter cycles in this model.
Why QQQ differs from RSP/SCHD: QQQ trends up and whipsaws harder, so farther OTM is required to keep income smooth.
My Thoughts
I will be limiting my QQQ purchases until we get a better forecast of what/how/when AI is going to decimate the technology field. Lots of jobs will be lost and tech will likely need to consolidate to adjust with the coming carnage.
Share The Wealth
What are you doing with QQQ?