Increasing Cash Secure PUT yield by 5%, by leveraging on MMF
TLDR: As an option user that uses Cash Secure PUT, I'm getting about a monthly 8% yield to "DCA". However, a significant amount of cash is locked up as collateral doing nothing. Money is sitting there, growing dust. To increase the yield, we can use Money Market Funds such as $CSOP USD Money Market Fund(SGXZ96797238.FD$ to make the money work harder for us. By putting the collateral in MMF, we can earn 3.6% more yield (5% if we join this Moo Moo's MMF event).
If you are new to options, or do not know what options is about is, you can learn more about it in this post here: Explained Simply: Options 101
Story Time
Back in June 2022, I had laid out strategies that could be used in this bear market, which on average had lasted 9.6 months, in the post below.
One of the strategy is to stretch out your DCA which I had been continuously doing using Cash Secured PUT and posting about it. The CSP strategy had been generating around 7.79% every month (details below), but we can still increase the yield further without increasing risk much more.
As the name Cash Secured PUT (CSP) suggests, we need to have cash on hand to secure the position. For example if we sold a CSP on $SPDR S&P 500 ETF(SPY.US$ with a strike price of $350, that means that we need to park $35,000 in Moo Moo. The $35,000 is sitting there doing nothing, earning nothing. If we have place the $35,000 in a bank account, we would have at least gotten interest on it.
However, now with Moo Moo's Cash Plus, we can park those idle cash in either $Fullerton SGD Cash Fund(SG9999005961.MF$ or $CSOP USD Money Market Fund(SGXZ96797238.FD$ to earn 3+% on it. On top of that, if we join this Moo Moo's MMF event, we can recieve up to 6 months of guaranteed 5% yield on up to $10,000. So in the earlier example, the $35,000 that is parked for CSP could generate an extra $1,260 in a year.
On top of that, if we were to use Moo Moo's funds coupon, we can increase the yield significantly to as high as 20% for a few days. Thus, I had been using cash fund to generate extra yield for a few months now, and had generated an extra SGD$347.92 for the past few months ($94.55 in terms on fund returns and SGD$253.37 in terms of coupons).
What stocks am I using CSP position to stretch out DCA on?
For the past few months, I had been selling CSP on $Palantir(PLTR.US$, $StoneCo(STNE.US$, $NIO Inc(NIO.US$ and $Grab Holdings(GRAB.US$. This strategy had given me an extra 7.79% yield per month for trying to DCA on my positions.
I had been selling 4x$10 CSP on $NIO Inc(NIO.US$ for the last 2 months and that had been giving me an average of 9.75% yield per month. With $Grab Holdings(GRAB.US$ I had been selling 4x$2.50 PUT for a long time now the last 2 months it had been giving me an extra 6% yield per month. $Palantir(PLTR.US$ had been giving me 6.375% per month for the past 2 months too. I had been selling 3x$8 for the last 2 month and it got assigned recently. Lastly for $StoneCo(STNE.US$, I had been selling $10 CSP too for an average yield of 6%.
Note: In the order record below, there are records for $Tricida(TCDA.US$ and $Bed Bath & Beyond Inc(BBBY.US$ but those are position used for gambling and not for DCA. And the post on them are here TCDA IV% crush theta play gone wrong, Got greedy, trusted apes, and got stuck in a hole.
I will still be selling more and more CSP to slowly DCA on my position during this bear market, while waiting for the bear market to end and for the bull market to begin ![]()
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. Need to work harder to earn more money, to pump into the market![]()
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. Invest safely, my friends ![]()
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MonkeyGee : really good stuff. thanks for sharing!
doctorpot1OP MonkeyGee: No problem
hope everyone can earn more money 
icezzz : Thanks for sharing. Looking fwd share with us more options strategy
doctorpot1OP icezzz: mm next one is about pricing and Greeks. then can move into theta gang plays
doctorpot1OP Kimberly Roger: hi there
Milk The Cow : Just need to make sure that ur origin subscribed principal amount w.r.t the 5% activation period does not drop below
.
for a stock opportunity, u can just reduce ur accumulating principal w.r.t the 5% = no choice (Better reward elsewhere). I think moomoo will then calculate the reduced principal accumulating the 5% interest to the number of days investing on it 
.
Welp, if u need
doctorpot1OP Milk The Cow: yea that's why using MMF safer hahaha
since the 2 MMF all buy tbill, so is just like getting a lousier yield tbill lor (cause fund manager take fees) 
Milk The Cow doctorpot1OP: ic
QRST : i am new into all these....can be my sifu
?
doctorpot1OP QRST: if you have questions can always ask de
in moo moo alot of helpful people, a lot will help you answer question. plus moo moo got chat room for learning investing. you search learn, and you will find a few groups dedicated to teaching
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