Hey Team, I've been mulling over a play I plan to employ tomorrow via margin, and I want you guys to scrutinize it.
My plan is to sell several Jan 30 12/12.50 Put Credit Spreads (or an IC ) on BITO with the intention to take assignment. Then, immediately sell a Jun 30 12/14 Collar while receiving the distributions in cash.
It's akin to what many were doing with ULTY on margin, but with protection.
After receiving the distributions and paying the margin interest, I'll be left with a little over 1k a month. I plan to use no more than a quarter of my margin, considering I have other active plays.
The only issue I see is BITO blowing thru my Long Put before taking assignment, and in that case I can always roll. I chose BITO because it is the most liquid, highest paying ETF.
What are you guys thoughts?