$TLT 240828 95.00P$ sell$iShares 20+ Year Treasury Bond ETF ...

Arsoni5t : You're being conservative with the strike. If you sell an at-the-money put on TLT expiring in December, you're averaging close to 1% per month. Also, cash plus is 5.2 if I remember correctly. The cash yield from this strategy is 15%+.

Wenhao95 Arsoni5t : Would you be kind enough to explain further? I would love to learn more about what you’re saying. Thankyou

Arsoni5t Wenhao95 : Which part specifically?

Wenhao95 Arsoni5t : Am not sure how did you get 1% per month avg for the TLT put option. Could you use an example of it. I’m assuming that you’re going to exercise the option and the difference in the premium is around 1% a month?

Arsoni5t Wenhao95 : If you're selling put, you're betting on the stock price NOT going below the strike so you can collect the premium without getting assigned. In this case, last time I checked the premium on the at-the-money put on TLT expiring in December, it was close to $4. Since TLT is priced at $97, the premium is around 4%.

Wenhao95 Arsoni5t : Thanks for the explanation. I think i got it confused when you mentioned at the money as only the 99 dollars option is giving a 4 dollar ish premium. I’m assuming that’s the one you’re saying and based on the current macro trends that it is pretty much a guarantee that rates will be cut and TLT will rise due to the increase in demand for bonds, you see this as a almost zero risk investment. Am i correct?

Arsoni5t Wenhao95 : Yes. Even if you don't see the price of TLT move much, which is the worst case scenario, you can still hold the strike and roll the options to the next quarter. You just keep collecting that premium.

lee… OP Arsoni5t : yes ,u are right!!

Wenhao95 Arsoni5t : Thankyou for the explanation. Much appreciated