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I am taking a bit of a different direction and closed a few sandwhiches today (before the Powell speech)

I've seen traders buy right before ex dividend date. Sell on ex div. Use the cash to sell deep itm puts or itm cc weeklies then buy back in before ex dividend with the extra funds so on and so forth

@@theworkinginvestor I've played puts, calls and shares repeatedly on YIELDMAX but overstayed too long and over traded them at times.....the option liquidity is poor for these funds

I agree.

Let's see how it plays out next month.

I have seen others make videos thinking its a good idea. On 1st thought I don't think it is unless Defiance (qqqy) fixes the perpetually nav errosion problem as it goes down and never recovered even when the underlying was going up. Yqqq is still so new and needs a bit of time to reveal how it performs.

You may be on to something, but looking at NAV alone is lacking from the equation. To calculate for total retun, one should backtest for total return: as Total return= All Dividends collected since may then subtract the NAV. Bear in mind that it's not as linear as I am constantly reducing my cost basis for free by ripping off an overpriced position and placing it on the inverse. I might make a video on this. Seems interesting to analyze. Thank you for your comment.

@@theworkinginvestor Agreed on the dividends. When I choose to invest, I focus mostly on the NAV without considering dividends. If the total return is positive, but NAV is declining, I lose interest.

@theworkinginvestor What are your proportions for each sandwich?

Thank you! Re: Yqqq to qdte I made a specific video on that. For now, I'm going to wait and see.

agreed

That sounds like a good idea, possibly at some point.

I'm considering possibly making a progress video on it at some point.

My video today was inspired by your question.

Inverse funds, so yes, but I believe you mean capped to the down side of the synthetic covered put.

Glad you enjoy it!

The funds are only as good as the fund managers running it.

😅

I'm trying to test out different ways to play these inverse funds.

I agree.The fund is only as good as how the fund managers operate the fund.

There is no denying that. Open up any YM chart. Some go down more than others. However, when it comes to these massively paying etfs. They do not function like growth stocks as some of these funds pay 50- 100%+ per year. I personally look at the total return.( I'm a retail investor/not financial advice. Depends on your risk tolerance and comfort. Talk to a financial advisor to get their take on your personal situation.) Thank you for your comment.

@@theworkinginvestor in my opinion most YieldMax funds sux. It’s not passive income if a person is forced to reinvest into the fund to maintain NAV. I preferred something like TDVI with 7-8%yield but have a great price appreciation

Thank you!

It's good to know others are also deploying leaps on tqqq! Love your content as well. I find some good value and pearls of wisdom.

I did the math and you’re right. Your 2,529 shares have yielded you $49,500 over 11 months. You’re 50,000 is worth $41K now. $9000 (I know you haven’t sold) is not too much to pay to gain $49K. I have 500 cony at average price of $20. The problem with these yieldmax ETFs though is that almost all of them are losing share price every month If CONY drops to $5 or even $10 I think both you and I won’t be happy with the position.

@@johntaylor4817 I understand what you are saying, but I don't care about the price... because next month I have all my money back, so October onwards is all profit which I am banking!!! Huge returns which I have captured... its all free money now basically

Not all funds are the same. You made some good points! Thank you!

Yeah, my thoughts too. I hold 4 of the yieldmax funds and I question If it’s wise to.

I hedge with inverse funds. (I made a few videos on it) For Some funds, I don't, but if total return makes sense, then I have no issues with slight erosion.They way I look at it is If say you get 60% in divs and 20% erosion your net total return is still 40% for example. Sometimes, I need to reinvest the divs as a form of lowering the cost basis.

@@theworkinginvestor I don’t get the wisdom of investing the divs to lower cost basis, You’re still buying shares at lower prices that may continue to go lower. It seems like the sales philosophy of if you’re loosing money on each sale you try to make it up by more volume.

​@johntaylor4817 with the sandwhich method, I am lowering my cost basis over and over again with no money out of pocket. I made a few videos explaining how I'm doing it. For the non hedged funds, the NAv historically has been more preserved and I have a very bullish thesis. As long as the difference between the dividends minus NAV equates to a healthy total return, I am fine with it. I take it 1 day at a time and running this experiment. I'm not married to these funds. Not all the funds are the same as we have seen. Some perpetually go down, and others fluctuate. For a falling knife, I get your question, but for those fluctuating, lowering the cost basis while down seems to make sense to increase the yield on cost. Again, with these cash products your not making money on the growth as much and more so on the Cash flow so if it stay where it is or down a bit, it's a win. Something paying out 50%-100% in a year and drops up to 30% in value is still beating the market. Past performance is not indicative of future gains and that's why I keep tabs on it. I appreciate your comment.

Thank you!

Not just yet. I'm going wait and see how this funds performs. It also demands 100% margin requirements in the 1st month.

@@theworkinginvestor keep us updated please and thank you

​@Nicogambino2 I wish there was an exact inverse replica from roundhill 0dte qqq synthetic put where you can have a daily strangle on the nasdac where they also use options on futures. Though there is so much positive drift in the nasdac, I might have adjust my allocation and tread carefully as betting against the nasdac might not be the best idea. Tsla is super cylical and with cony there is the cycles of the crypto winters.

There are many ways to play it. Normally, not high yield dividend funds, its a zero sum game, but they way I see it and my hypothesis is with the high yield dividend funds, I get payed handsomely while more or less trying to keep my portfolio stable. In all honesty I reinvested and rebalenced most of my dividends on my last distribution, but bear in mind the entire market was down. Time will tell to see if this experiment will work out.

Correct

Thank you!

I started this all with the tesly sandwich I wouldn't eat it myself because Tesla is disgusting

I want to know what you're going to do with the new fund for it to balance me out I would have to buy so much of it to counter my round hill

You know you are right! You were the first person that I recall mentioning it. Now it's taken off like wild fire. I'll mention it in my next video. It's crazy how many things you brought out there: core number compounding, the sandwhich Method, and application of margin to catapult returns the khmer also has done margin for a while, but no one at your scale 4X (heloc+ margin). I appreciate all the value you provide. No "buy my eguides" nonsense, lol.

Combining core number compounding with the sandwich method is very unique I never put the two together that's very very good

​@@ORACLEFASTMONEYTRADERThank you!

How do you like FIAT? Is it working for you? I have 200 shares of CONY and it ain't doing shit for me

Wow, they finally came out with an inverse Nasdac Yieldmax funds!

speaking in the part of cutting off the top

Pretty much everything is a taxable event with realized gains. So, some of the proceeds need to be put aside.

Great question. For now, either keep the dividends to reduce Margin or buy more shares when NAV is down or start/build new position(s), set aside for taxes. Can change as it's a moving dynamic goal and target.