Outperforming Wall Street: Simple Option Strategy
Update: 2025-08-29
Description
In this segment, TP joins Liz Dierking and Jenny Andrews to analyze whether self-directed investors can outperform Wall Street products. Research comparing 2013-2025 performance shows that selling at-the-money SPY put spreads every 45 days outperformed simply buying S&P 500 index funds by about $1,300 on a $2,000 investment.
"If you are simply relying on Wall Street to take care of you, you are missing out," TP explains, emphasizing that Wall Street management fees may seem small but generate significant revenue for firms managing billions in assets.
The hosts demonstrate how retail traders can execute this simple strategy with defined risk in their tastytrade platform. They note that while index funds made money during the bull market, option strategies with "a little bit of knowledge and confidence" potentially deliver better returns.
"If you are simply relying on Wall Street to take care of you, you are missing out," TP explains, emphasizing that Wall Street management fees may seem small but generate significant revenue for firms managing billions in assets.
The hosts demonstrate how retail traders can execute this simple strategy with defined risk in their tastytrade platform. They note that while index funds made money during the bull market, option strategies with "a little bit of knowledge and confidence" potentially deliver better returns.
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