I like your risk style and enjoy your take on this high yield niche... I find the high yield etf's that historically recover to declaration price and use a hybrid dividend harvest strategy...I buy on declaration date, get paid the dividend, set a GTC sell limit order and when price returns to declaration price I sell...I rinse and repeat... if it doesn't return, I hold, get paid until it does....the key is to find the high probability recovery funds... This allows for capital preservation and income
NAV needs to at least hold steady, otherwise sure you might get a 50% return, but it's a 50% return of something that is shrinking (ie, the sold calls get cheaper yielding less money.). A perfect ETF would have stable nav and the rest as returns.
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I like your risk style and enjoy your take on this high yield niche...
I find the high yield etf's that historically recover to declaration price and use a hybrid dividend harvest strategy...I buy on declaration date, get paid the dividend, set a GTC sell limit order and when price returns to declaration price I sell...I rinse and repeat... if it doesn't return, I hold, get paid until it does....the key is to find the high probability recovery funds...
This allows for capital preservation and income
That's a great idea. The gtc limit so it automatically gets sold when you recover.
NAV needs to at least hold steady, otherwise sure you might get a 50% return, but it's a 50% return of something that is shrinking (ie, the sold calls get cheaper yielding less money.). A perfect ETF would have stable nav and the rest as returns.
Thought you were a bit heavy for a test run (experment). Keep going !!!!!
Thank you!
Important to understand the underlying
Your definitely on track on how to trade these funds
Emotional attachment to funds will destroy accounts
I agree!