If you decide to invest it (in an index fund, for example SPY or IWM), I am not seeing any downside to selling cash secured puts. For example, on SPY, you could sell a short 48-dte 30-delta put (strike $312 on Sept 18) for $616 premium. If it is assigned (SPY goes below $312 on Sept 18), you will get 100 shares of SPY for $31,200 but you are no worse off than if you had bought today and also you will have reduced your cost basis to $30,584. If SPY goes up, the shares will not be assigned; pocket the $616 premium and repeat the cycle. Repeat this loop until your entire $450k is invested. This also has the advantage of spreading out your purchases, and thus dollar cost averaging them. Just a thought... I welcome any criticism of this approach :-)
The only argument against this that I can think of is that the market could continue to go up and up, and your premium gain might be less than what you'd gain through regular DCAing or lump summing in.
Thanks and yes, that is a good point. However, given that SPY is already at or near an all-time high, it seems unlikely that it would continue to go up every month or two by the premium amount (which itself is pretty substantial due to high volatility currently).
However, one adjustment if you have a bullish outlook is to reduce the delta from 30 to 20 or 10. Premium would go up and assignment is more likely.
OP, do it and report back :-) Even if you don't have any options experience, I am sure any broker will be happy to give you level 4 options (or at least level 2 which is what you need for cash secured puts) if you deposit $450k capital!
