A.I.M. Users Bulletin Board

[macprogrammer]

Toofuzzy, those are all excellent approaches.

My methods are extremely convoluted and should not be attempted by any sane person. Having portfolio margin helps.

But here they are anyway.

Method 1 (works well with the SPY ETF):

1. Sell deep OTM LEAP calls for the linear income and total market crash hedge.

2. If the market rallies on a shorter term basis (30 days) then swing trade (using AIM) 1-month out calls of the same security for highly compounded profit as the other side of the hedge.

3. Eventually roll the LEAP as needed.


Method 2 (works well with NUGT ETF):

1. Buy the stock and sell covered calls for the upside hedge.

2. If the stock trends down then use AIM to buy and sell 30-day out puts for the compounded profit as the other side of the hedge.

3. If the stock eventually returns to buy price then start selling calls again.

4. Use the covered call cash to fund AIM buys. Use AIM profits to buy more stock.