Going to share this with my baby adult children. I own these ETFs. I tell me friends about these ETFs. They are like owning trailers in a trailer park.
I am a financial advisor and have been trading options for a decade plus, especially covered calls and put writing. These covered call funds are not as simple as just looking at the yield. The big risk with these funds is if the price whiplashes and the fund continuously write the 50 delta calls. You will get a lot of the downside, but not most of the upside. Sure you will get the dividend payout, but the fund price would have dropped more. On a total return basis, you could be worse off than holding half of the shares that you would have wanted and put the other half in money market. At the very least, compare risk ratios of the fund to the underlying and use total returns. This will give you a better idea of the strengths and weaknesses of this strategy.
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Going to share this with my baby adult children. I own these ETFs. I tell me friends about these ETFs. They are like owning trailers in a trailer park.
Whatever you focus on grows!
💎 weekly payouts!!! 💪🏼
Yes yes yes
Always dropping knowledge and knowledge is power
I am a financial advisor and have been trading options for a decade plus, especially covered calls and put writing. These covered call funds are not as simple as just looking at the yield. The big risk with these funds is if the price whiplashes and the fund continuously write the 50 delta calls. You will get a lot of the downside, but not most of the upside. Sure you will get the dividend payout, but the fund price would have dropped more. On a total return basis, you could be worse off than holding half of the shares that you would have wanted and put the other half in money market. At the very least, compare risk ratios of the fund to the underlying and use total returns. This will give you a better idea of the strengths and weaknesses of this strategy.
Straight 🔥🔥
As always thanks for dropping gems
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What are the risks of such funds?
They’re new funds. No one knows how they will perform during a crash and bear market. These funds are risky. You have to know your risk tolerance.
Weekly payouts have been a game changer! Thanks G and the MFG team for guiding us through
You’re very welcome, Dean! Keep building those weekly dividends!!