I would like to run my current investment strategy by my reddit team
I am lucky enough to have a stock savings plan with my company. I get a by-weekly 50% match on my contribution. This is great, a 50% roi for doing nothing! In April 2024 the company split into two, as did my shares on a 4:1 basis. I am currently the proud owner of 93 shares of GEV with an ACB of $179 and 88 shares of GE with an ACB of $132. All of this is in a non-registered account with SunLife and I currently add about 1.4 GEV shares per pay.
Here is my Plan:
Transfer the shares in-kind from SunLife to my newly opened margin account with Questrade (and score the 3% transfer promotion) (I know, IRBK is the way to go… but I’m a long time Questrade user and tastytrade is not available in Canada)
Purchase 7 shares of GEV and 12 shares of GE on margin and sell covered calls.
I want to avoid being assigned or selling as it would trigger a large taxable capital gain
Here is where my strategies needs some help. I’m not sure what is the best option
I’m thinking of selling a GEV Jan27 CC strike420 Delt .51 for a premium of 66.00. This would pay off the margin of both purchases, and leave me with a very nice profit if exercised and defer capital gains to 2027. Only risk is lost profits if the the stock really pops.
Then I would run 30-45 day CC’s on the GE stock, at about 30 Delta. The goal would be to not get exercised to avoid the capital gains, but I guess paying taxes is a small problem when your making bank. Bank the premium and add new positions to the wheel selling CSP (avoiding using margin!) - wash, rinse, repeat.
I’m wondering what the thoughts are on selling a CC LEAP on GEV vs just doing a standard wheel with 30-45 day turn over?
Any other low to medium risk strategies you would employ? My retirement and savings accounts are well funded. This margin account would make up less then 10% so I’m open to some risk or taking a small margin loan to fill out a position.
I've been a buy and hold investor for many years, recently started playing with options. Been doing lots of reading and youtube research. Any advise is appreciated.
Apart from YOLO strategies, what would you do? (and all this planning was before the stock crashed today)