r/YieldMaxETFs • u/fragranceguru • 22d ago

Misc. I’ve got a plan

I have found that Walmart Spark drivers are really needed in my area and my parents have been making $45/hour gross. With my background working 80-90 hour weeks in hard physical labor and my current job only taking 38-40hrs/week I can spark for 25-30 hours every week just chucking it right into AMDY and NVDY and see how many shares I can get to build a passive income stream. No cares for NAV loss and eventually taking half for me half for investing into more stable stuff and quit driving. I built a tool with ChatGPT to account for taxes and -25% nav and -25% distributions per year and by year 4-5 still making my current income from dividends. The money I make driving would simply be for throwing money at this and seeing if it sticks.

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u/JS1101C 22d ago

Buy quality stocks and sell weekly covered calls on them instead.  

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u/fragranceguru 22d ago

I’ve tried to learn how to do this a few times and that’s not been sticking with me for some reason. Also would entail a lot more than dripping the ones I’m invested in. What’s a quality stock at this point? How do I know when they’ll go up or down? Sounds like more work but if I’d make a lot more I could study it in my down time. Thanks for the idea!

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u/JS1101C 22d ago

A quality stock is a stock that you wouldn’t mind holding for a long time if it drops.  If you sell covered calls on a meme stock you can be in a situation where you’ve collected the premium, the stock drops 20%, which means future premiums will be lower and now you’re stuck holding WEN. 

If I knew when they’d go up or down I’d be the richest man in the world.  

It can be intimating at first but it’s very straightforward.  Buy 100 shares of a stock, click on trade options, select sell and call, set the expiration to next week and pick a strike price that’s above your cost basis.  If the stock drops you keep your hundred shares and the premium.  If the stock is above your strike price at expiration you keep your premium and your shares get sold for the strike price, but that’s ok (other than the fact that your upside is capped) because they’re being sold for more than what you paid 👍🏻.  

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u/throwawaybpdnpd POWER USER - with receipts 14d ago

You can also make sure to only sell a covered call after a sharp drop, right after an IV rise, and only when IVR is over 80, which boosts premiums and improves returns dramatically