A.I.M. Users Bulletin Board

[SFSecurity]

Hi Gang, I've been playing around with a slightly different approach to AIM. First of all I bought 400 shares of GUSH at $19/share. GUSH is a 3x ETF. I had a free trade so it cost exactly $7600. Then I sold 6 contracts of a PUT at $17.50 to bring in $1,490.83 after commission. I chose a PUT price to be below what AIM would buy some more shares. On a monthly basis I should have sold 49 shares on 7/1 at $21.65 and then bought 114 shares at $16.95, the price on 8/1 but didn't. I just let them ride. Based on the price on 9/1, $24.32, I should have sold 113 shares but just let it ride.

Based on today's price of $27.03 I still don't show an additional sale using minimum sale of 10% of shares, $500 minimum trade size, Buy Safe of -5% and a Sell Safe of 0%.

Assuming it won't go up all that much before the CALL I sold at $22 for December 15th, and using today's pricing, AIM alone would make 95%/year but the straight selling puts and covered calls will gain 155%/year. Not bad.

So, I'm guessing that some combination of the two approaches would be even better with a high volatility ETF. In this particular trade if I had bought 600 shares of GUSH and did the AIM trades as well as the PUT/CALL routine I'd have gotten ~175%/Year and would still have 75 shares to sell to clear the trade. This would add ~$2000, upping the total to about 225%/year. Wow!

I'm going to play with another one and see how I do.

Best,

Allen