- Back on Sept. 16 I wrote about how 3X-leveraged ETFs could be married with puts to produce very large returns with constrained risk of invested capital.
- My goal with the married-put strategy is to commit a much larger portion of my portfolio to very high returns, taking advantage of the safety backstop.
- On EZV's Oct. 4 'buy' signal I opened married-put positions in SPXL, TQQQ and UDOW. Puts were bought on the more liquid, unleveraged SPY, QQQ and DIA respectively.
- In the 25 trading days since Oct. 4, the put-protected positions have gained 13.5% and I've learned some things as well. I'll elaborate.
- Bubbles do burst and recent Fed and fiscal stimulus is unprecedented. This strategy is fearless and likely will benefit from a bursting bubble.
For further details see:
Bubbles Do Burst, More On Belts And Suspenders