Key insights
- The post discusses using long/short or direct indexing strategies to offset capital gains from selling naked puts on QQQ and IWM. The user seeks advice on which strategy is more suitable. The impact on the broader US market is minimal, as it reflects an individual investor's portfolio management decision.
Hi All,
I am contempalting using a long short strategy or a direct indexing strategy to offset capital gains that I incur from selling naked puts daily/weekly (Usually selling Qs or IWM 2% out on most days and some for the week further out, sometimes a bit less or more depending on Vix or market events such as big earnings). The options generate an extra few % a year when selling on like 15% of the portfolio if assigned, but higher return if putting more of the portfolio at risk of being assigned.
Which product would make more sense, and why?
Thanks