Great interview Adrian! I was really hoping you would do an update video with Jay! Thank you so much for everything you do and all your support and knowledge!!
I am pretty skeptical of this strategy long term for something like Tesla that is fairly volatile but I really like it for some of the giants like Apple, Microsoft and Amazon. It seem to me that the multi trillion dollar companies are unlikely to be able to double in a year anymore but they are likely to continue to go up slowly and steadily which is the ideal case for a strategy like this, if it goes up fairly steadily then these ETFs will capture a lot of the upside compared to a stock that goes up and down sharply but even the Apple one seems to have a good dividend around 30%.
yes good point. some people will prefer the lower risk ones. its basically like owning a tesla vs an Apple or Microsoft, or Exxon, or JP Morgan. the risk level is way different but higher risk = higher reward potential
Well… I invested a fixed amount in TSLY and will DRIP it… after 18-24 months I will be playing with house money and having passive income (growing exponentially). Don’t see a risk different from having any underlying (unless the company goes bankruptcy, which I’m pretty sure is not the case for Tesla.
These funds are something I'm very interested in. I'd love to own NVDA, MSFT, etc, but they do not produce enough income to make it worth my while. These funds may do the trick for me. I'll trade some upside for a good income.
Ouf, that guy knows John Hull's book "Options, Futures and Other Derivatives" by heart! Playing with options that way is an art that comes with a lot of experience....honestly, I complete a MBA 30 years ago and I have difficulty following up! You really have to be working all day in that type of business to catch everything clearly. At least we can be certain that they know what they are doing, because their products are excessively interesting...no others are giving that type of yields. Great stuff as long as you don't abuse! 😁
Thanks Adirano for another great interview! Also, thanks for asking the "audience questions" regarding a passive YieldMax "fund of funds" - That would be amazing and I can't wait for that ETF to launch. Keep up the good work for your community, we appreciate it.
Another amazing interview Adrian! Thanks for asking the questions us viewers wanted answers to! Your interviews with Jay are some of my favourites as he’s very knowledgeable and good at explaining everything!
worst case put OTM in the ETF. Correlated Covered Calls in Tesla o.a...calculating so, that covered calls in unterlaying are hedged with the long position in ETF. Holding a long term Put Butterfly in SPX with wide Range for generall downturns. Risk is reduced after each covered call and dividend. thanks
"I love covered calls, they're my bread and butter. I never knew there were weekly, I've never sold a call in my life...." I seek clarification. Time stamp 8:50 to 9:10
KLIP is higher risk in my book. Not holding the underlying does not increase the risk whatsoever as we discussed. its actually a benefit for an active covered call strategy
So its genius strategy, they buy calls aiming for 1% a week profit less trades and commissions, maybe sell some puts to capitalize on drops in share price and protect themselves with bonds or notes. The losses occur when they have to buy stock with the bonds/t bills and if it happens too much, it impacts the NAV driving the etf share value down. The losses have driven the etf share price down some 25% since inception but the profits have offset the drop in share price to the tune of around 20% rise in total value of the investment. If one reinvested the dividend and had $24,500 worth of this etf one would actually be looking pretty good with the yield being in the 50 plus % range over a longer term. Now this is just my evaluation as a non professional and do not take it as investment advice. I would be interested in hearing what others think...
This interview by far provides most transperant info that anyone can ask for. Good job! Hearing all comment related I think traders or even fund managers embrace volatility whereas investors don't, a very different mentality and approach.😊
Have a question or scenario that's on my mind. The amount of money that can be made off cover calls does have a limit, correct. And if that's correct, and the amount of investors keeps increasing & the amount of profits off cover calls have a ceiling the dividend yield well intentionally go down.
Yes, the short put part of the synthetic position. Rolling a short put deep in the money can be pricey because you have to buy-to-close while simultaneously sell-to-open.
Still waiting for all of these to be available in M1 Finance. So far they only got TSLY. I got a covered call "pie" within my income focused "pie" that all of these would fit perfectly in. Allocate 2-3% a piece on them and just let them do their work alongside JEPI/JEPQ/SVOL and reinvest into the rest of my portfolio. Would be a pretty nasty average monthly yield overall.
Yieldmax holds nothing. They cap the upside but will not limit the downside. On top of that again, they have no underlying, not even toilet paper. Not saying these guys are fly by night but, when volatility stops - the fund price will plummet. Stop listening to these TH-cam guru’s. If they knew anything, outside of that they don’t know anything about finances and can only make videos, they wouldn’t be making TH-cam videos.
I hope they do a weekly cover call strategy for the S&P or Nasdaq, Adrian, since you are retired and have the time, you should write your own weekly covered calls on your portfolio, you can double your yields!
Awesome as always! Is there any potential risk to having to many ETF’s too manage? I would assume bringing on more and more ETF’s could have diminishing returns as you’re not able to actively manage them as effectively? Unless you hire more managers which could bring management fees up? Would like to hear some reasoning and thoughts on if there will be a cap on how many ETF’s yield max manages. Thanks!
QUESTION: I heard that the payout from Yieldmax ETF's are "Distributions", not "Dividends". For Canadians, 1. How are the tax implications on distributions vs dividends. 2. What are the implications being held in an RRSP vs TFS vs regular taxable investment account. 3. Does the USA still take a 15% withholding tax on distributions?
One viewer said we need a bucket yieldmax etfs. I plan to accumulate my own bucket of yield max etf funds in dedicated brokerage account in a Roth IRA account. Anyone can do that.
Great interview! Someone finally asked what the risk is with yieldmax products...given what Jay explained of the intrinsic risks ... how should one use their products? Should you protect your capital by buying the underlying? If just buying the yieldmax products without hedging them, what percentage of one's portfolio should they represent?
It really depends on how you feel about the you underlying, he explains it pretty perfectly as it's an alternative way to invest in let say for example TSLA. How much would you put in TSLA just on its own?
@@PassiveIncomeInvesting seriously, Jay indicated that reinvesting the distribution is how one could maintain the capital value while investing in their funds. What's the point of providing high yields if the only way to maintain the capital value is to reinvest them back in the fund? Some people like myself need the distributions to pay some bills but if we can't access them because we need to reinvest them to maintain the investment's value, would a lower yielding product like HDIV work better in providing a distribution while growing your capital?
I re-invest some of the distributions back into YM and buy my core ETFs with the rest of the cash flow. I look at my portfolio as a whole entity which is beating inflation by far. If you’re receiving 20 percent 30 percent 50 percent in income, at those premiums, NAV erosion is less of a concern, in my opinion.
GREAT interview! I only have about 30 shares of TSLY to test it out but am definitely waiting for the fund of funds by yieldmax that will have all of their single stock funds
The problem with this strategy is that it doesn't use a Put buy to protect downside on the stock. It should use an IRON CONDOR. This is very risky when it comes to capital value of the stock.
can you the yield max manager can the ETF be in a sythetic short position meaning the underling stock eg $NVDA or $TSLA goes thru the Call and or Put strike forcing the Fund to cover and buy back the stock at higher
What is the chance for these funds to go belly up? Im just learning about these etfs, there pretty new are u guys happy investing into these funds. I bought a small position into tsly, nvdy, oark.
I have one basic question, hopefully someone can help me better understand this. Let's take TSLY as an example. Consider a scenario where the TSLY manager sells option calls and the underlying stock (TSLA) rises well above the option strike price before the expiration date, in that case the buyer will exercise the option and purchase the underlying stock from TSLY. When this happens, the difference between TLSA market price and the strike price will need to be absorbed by the TLSY fund, so this money will come out of the TSLY fund NAV, is that correct? If this scenario involves a limited qty of option calls, then the NAV losses are manageable. But in an extreme case where the underlying stock rises up sharply and the ***majority*** of the TLSY option calls end up being exercised, wouldn't this have catastrophic impact to the TSLY fund NAV? I would like to know if I understand the mechanics correctly or not.
It doesn't "come out of the nav". NAV means NET Asset Value. So the NAV would just reflect the value of the holdings, in this case, price it was exercised at + option premium. Assuming they are writing Out of the money calls, you should still see some upside on a sharp bull run, you just won't see it all the upside which is the main draw back of this strategy, but if you are investing in the stock market anyway and plan to hold long term, this strategy is an infinite money glitch.
options can be settled in cash (these are) , not in stock. these ETFs do not hold the underlying. so yes the cash would come out of the fund. but dont forget that all calls are OTM so not only do they always capture some upside but they also make $ by selling the calls. you cannot ignore the fact that they make good $ actually selling the calls in the first place. but yes what you mentioned is the risk for any CC strategy which I asked Jay about in the video. Higher volatility = higher risk when it comes to ANY STRATEGY. just like owning Tesla vs Apple stock
looking at stock charts are for children. adults understand things and look at total returns. if the underlying stock tanks, how can an ETF that holds the same stock not tank as well?
I just want to know, what happens to DFN, FTN upon termination date which is Dec. 1, 2024, I'm I obliged to sell the stock at market price , or could I continue holding them if they extent for another 5 years. Thanks
You should watch his video about split share, it's explained. In short they are renewed 99% of the time, but if they're not renewed there's a high risk. We can lose our capital as written in the prospectus of these funds. I think(would need to revalidate) we would get the NAV minus -10$(to pay the preferred share holders), so possibly 0$. It's an extreme situation but one to be aware of. It's one of the reason why we should limit our allocation for split share in our portfolio.
They don't buy Tesla for collateral when they sell calls, they hold bonds. If you look at the TSLY holdings its calls and puts with 0% stocks and it says 125% bonds which are T bonds or T notes I bet. Its actually genius using bonds for collateral I think.
AMD soooo volatile really looking forward to this one... and maybe jp because we will all go to zero looooong before jp and the boys dont get paid .... msft also in the boat with jp super safe....
great to see all the info on how its done . i couldnt be bothered to spend my time to understand what it all means .. so glad to have clever people make me lots of money ..
Awesome interview! Currently OARK, TSLY, APLY and NVDY are on options chains. Do you happen to know when the other YieldMax ETFs will be on options chains too?
@@PassiveIncomeInvesting You can buy/sell puts and calls on OARK, TSLY, APLY and NVDY right now. I try to sell OTM puts on them, and if they go ITM and I get assigned, I'm good with that because I'll happily own another 100 shares. Was wondering if you had insight into when the other YieldMax ETFs will be on options chains (AMDY, DISO, etc). BTW, Defiance ETFs QQQY and JEPY are also on options chains.
Great interview Adrian! 😀 I love these Yieldmax funds and I think it can give any PI portfolio a big boost without introducing too many risks. All-in-one yieldmax fund is a great idea. The whole point of being a PII is for someone else doing the work and we just collect the dividends.
Do the math if they are claiming 50+ percent in yield annually. And it's 2 months away from November, I'm going to go out on a lime and say its out preforming the underlying by atleast 10 percent. That's with no knowledge on my end and just looking at this post. You can find the answers to this by taking the distributions TSLY has been paying out each month, add it up and then add it to the nav and see how it lines up.
I heard him say in other interviews they can capture 80% of the upside of the underlying stock over the long term. Has anyone seen the data around this statement?
It's not impossible. The upside is how high the underlying stock price will go over time. If someone is really skilled at writing calls they could do 80% overall, that's counting even the down turns and out preforming the underlying with premiums. There are back testing done on covered calls on youtube. Do some research, a guy does back testing in 4 major market conditions and it shows that cover calls out preformed the underlying in 3/4 of the senerios.
it really depends on the volatility. its probably an average. it could be more , it could be less. if the stock goes up less than 5% when the calls are rolled over, it would mean 100% upside
Good interview. Is there anyway that you can get the companies that you have interviewed to make ETFs that play on the 1st of every month? I feel like this would be a very interesting move for them to do and there might me a big market for it also.
The only thing that concerns me is tsly doesnt capture all the upside of tesla but caaatches all the downside of tesla. Example back in april tesla 170s, tsly 14's. And now tesa 240's and tsly is 14's. if Nav goes to single digits id be scared. This is why I am not reinvesting dividens but putting dividens into bcd in my roth like MAIN for now then wait a year or so see how tsly does in a longer time span
It’s hard to get onboard with these products as you can do alot of it yourself. You just need to learn and understand how the options market works. Limited upside and capturing all the downside for the “premium” reward is difficult especially when your not being taxed efficiently in a taxable brokerage and NAV is eroding overtime. So you loose NAV, your hit with taxes as ordinary income, limited upside due to out of the money calls all for the sake of a juicy premium. In the long run, your better off just sticking with SPY calls and puts.
@@theflightsimulationexperie6894 the thing about doing it yourself, you can ultimately be long a declining stock that's gotten Put to you, and it can continue to decline.
the point is tsly takes all the downside of tesla but only takes a portion of the upside so eventually tsly will drop down to 0$ and cant pay dividens anymore if it keeps on tkaing the full downside of tesla. You have to realize this can happen so the best way to protect yourself is to not reinvest and invest the divs into a stable stock and see how tsly performs in the next 2 to 3 years before fully reinvesting the divs.@@Alphahydro
Weekly calls have new competition in daily calls that have recently been initiated in the market. I wouldn’t be surprised if premiums from funds with monthly calls have a hard time reaching target yields as more of the pie shifts towards daily. I wonder if Jay would include daily calls to build more yield. Some fund manager I’m sure will come out with a fund like that eventually.
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All of this interview is nice and all, what I wanna know is how those yields are holding up. Did someone buy a year ago that is still holding?
Great interview Adrian! I was really hoping you would do an update video with Jay! Thank you so much for everything you do and all your support and knowledge!!
I’m waiting on the “all in one yieldmax” for 3.5% of my portfolio.. fingers crossed
Buy equal percentage of these shares in your M1 pie
@@LV-ei1ce They weren't available on M1 last time I checked.
QQQY just came out.
Wait no more... YMAX 1/2024
It’s called YMAX.
I am pretty skeptical of this strategy long term for something like Tesla that is fairly volatile but I really like it for some of the giants like Apple, Microsoft and Amazon. It seem to me that the multi trillion dollar companies are unlikely to be able to double in a year anymore but they are likely to continue to go up slowly and steadily which is the ideal case for a strategy like this, if it goes up fairly steadily then these ETFs will capture a lot of the upside compared to a stock that goes up and down sharply but even the Apple one seems to have a good dividend around 30%.
yes good point. some people will prefer the lower risk ones. its basically like owning a tesla vs an Apple or Microsoft, or Exxon, or JP Morgan. the risk level is way different but higher risk = higher reward potential
Especially right before a big bull market in the end of an election year
@@PassiveIncomeInvesting what happens if the stock gets down massively, i am seeing all oof these are down on a ytd basis.
Well… I invested a fixed amount in TSLY and will DRIP it… after 18-24 months I will be playing with house money and having passive income (growing exponentially). Don’t see a risk different from having any underlying (unless the company goes bankruptcy, which I’m pretty sure is not the case for Tesla.
A bit disappointed they didn't launch the Berkshire ETF but I am interested in a S&P 500, QQQ or all in one fund.
Likely not enough volatility in those tickers
i think they will
I love all the options there are now, great times to be a dividend investor
YESSS!!!!!!
These funds are something I'm very interested in. I'd love to own NVDA, MSFT, etc, but they do not produce enough income to make it worth my while. These funds may do the trick for me. I'll trade some upside for a good income.
Ouf, that guy knows John Hull's book "Options, Futures and Other Derivatives" by heart! Playing with options that way is an art that comes with a lot of experience....honestly, I complete a MBA 30 years ago and I have difficulty following up! You really have to be working all day in that type of business to catch everything clearly. At least we can be certain that they know what they are doing, because their products are excessively interesting...no others are giving that type of yields. Great stuff as long as you don't abuse! 😁
Thanks Adirano for another great interview! Also, thanks for asking the "audience questions" regarding a passive YieldMax "fund of funds" - That would be amazing and I can't wait for that ETF to launch. Keep up the good work for your community, we appreciate it.
Glad you enjoyed it!
Yes. I would like to see a YLDMX fund that has them all.
Fund manager definitely very professional and super smart
Another amazing interview Adrian! Thanks for asking the questions us viewers wanted answers to! Your interviews with Jay are some of my favourites as he’s very knowledgeable and good at explaining everything!
Our pleasure!
This guy is believable and knows what hes doing. Not promising, just giving alternative investments.
thanks, refreshing to hear some common sense
I have small dreams so I'm investing in Yieldmax for the US Treasury gains. The rest is just bonus, whether it comes or not.
very small! c'mon man dream bigger!
Hi, will these ETFs actually pay out money each month?
worst case put OTM in the ETF. Correlated Covered Calls in Tesla o.a...calculating so, that covered calls in unterlaying are hedged with the long position in ETF. Holding a long term Put Butterfly in SPX with wide Range for generall downturns. Risk is reduced after each covered call and dividend. thanks
Sound like bs lol
thanks! keep watching
"I love covered calls, they're my bread and butter. I never knew there were weekly, I've never sold a call in my life...." I seek clarification. Time stamp 8:50 to 9:10
I’m saying that I don’t buy / sell options myself . I invest the in the options based etfs
Great interview and very informative, thank you! 👍🏼
Im not sold on these. Ill stick with KLIP. At least it owns the underlying. And China market has a huge upside
KLIP is higher risk in my book. Not holding the underlying does not increase the risk whatsoever as we discussed. its actually a benefit for an active covered call strategy
So its genius strategy, they buy calls aiming for 1% a week profit less trades and commissions, maybe sell some puts to capitalize on drops in share price and protect themselves with bonds or notes. The losses occur when they have to buy stock with the bonds/t bills and if it happens too much, it impacts the NAV driving the etf share value down. The losses have driven the etf share price down some 25% since inception but the profits have offset the drop in share price to the tune of around 20% rise in total value of the investment. If one reinvested the dividend and had $24,500 worth of this etf one would actually be looking pretty good with the yield being in the 50 plus % range over a longer term. Now this is just my evaluation as a non professional and do not take it as investment advice. I would be interested in hearing what others think...
This interview by far provides most transperant info that anyone can ask for. Good job! Hearing all comment related I think traders or even fund managers embrace volatility whereas investors don't, a very different mentality and approach.😊
indexese don't move enough to warrant this strategy single stocks move
Reinvesting dividends in a declining NAV will result in the investor breaking even in the long run at best, smh.
not necessarily
@@PassiveIncomeInvesting reminds of a position I once held in T
Have a question or scenario that's on my mind. The amount of money that can be made off cover calls does have a limit, correct. And if that's correct, and the amount of investors keeps increasing & the amount of profits off cover calls have a ceiling the dividend yield well intentionally go down.
The interviewer asked all the right questions and hitting all the right points. Thank you!
Always a good interview. It'd be nice if someone would ask Jay how they plan to handle the short puts expiring mid-month.
you mean the synthetic combo? i think they just roll it , or maybe before expiry if they are in a profit
Yes, the short put part of the synthetic position. Rolling a short put deep in the money can be pricey because you have to buy-to-close while simultaneously sell-to-open.
Still waiting for all of these to be available in M1 Finance. So far they only got TSLY. I got a covered call "pie" within my income focused "pie" that all of these would fit perfectly in. Allocate 2-3% a piece on them and just let them do their work alongside JEPI/JEPQ/SVOL and reinvest into the rest of my portfolio. Would be a pretty nasty average monthly yield overall.
Remember the tax issue, this is taxed as income not capital gains . Might push your tax bracket
Yieldmax holds nothing. They cap the upside but will not limit the downside. On top of that again, they have no underlying, not even toilet paper. Not saying these guys are fly by night but, when volatility stops - the fund price will plummet. Stop listening to these TH-cam guru’s. If they knew anything, outside of that they don’t know anything about finances and can only make videos, they wouldn’t be making TH-cam videos.
🥱
I hope they do a weekly cover call strategy for the S&P or Nasdaq, Adrian, since you are retired and have the time, you should write your own weekly covered calls on your portfolio, you can double your yields!
Awesome as always! Is there any potential risk to having to many ETF’s too manage? I would assume bringing on more and more ETF’s could have diminishing returns as you’re not able to actively manage them as effectively? Unless you hire more managers which could bring management fees up?
Would like to hear some reasoning and thoughts on if there will be a cap on how many ETF’s yield max manages.
Thanks!
QUESTION: I heard that the payout from Yieldmax ETF's are "Distributions", not "Dividends". For Canadians, 1. How are the tax implications on distributions vs dividends. 2. What are the implications being held in an RRSP vs TFS vs regular taxable investment account. 3. Does the USA still take a 15% withholding tax on distributions?
yes they are distributions - RRSP: no taxes whatsoever . TFSA: 15% Withholding tax on the distributions
Good explainations on how these ETFs work. Buying more every month...
Tesly will go to 13 in few months,11 in few more,and so on.tesla will go up end down!! Flawed etf,scarry !!!
fortune favours the brave
One viewer said we need a bucket yieldmax etfs. I plan to accumulate my own bucket of yield max etf funds in dedicated brokerage account in a Roth IRA account.
Anyone can do that.
yes but some would prefer the convenience of 1 ETF I think. anyone can write their own covered calls but i chose not to. I save time
I have them all except DISO. Variable distributions are to be expected. Take the average over 6 months.
Wow awesome all these new ones they have coming. They have to do one that is a basket of all these together. That would be great!
Great interview! Someone finally asked what the risk is with yieldmax products...given what Jay explained of the intrinsic risks ... how should one use their products? Should you protect your capital by buying the underlying? If just buying the yieldmax products without hedging them, what percentage of one's portfolio should they represent?
"how should one use their products?"- now that's a VIDEO idea right there...
@@PassiveIncomeInvestingMake that one happen Adriano.. I'm still on the fence with this style but love watching your videos none the less
It really depends on how you feel about the you underlying, he explains it pretty perfectly as it's an alternative way to invest in let say for example TSLA. How much would you put in TSLA just on its own?
@@PassiveIncomeInvesting seriously, Jay indicated that reinvesting the distribution is how one could maintain the capital value while investing in their funds. What's the point of providing high yields if the only way to maintain the capital value is to reinvest them back in the fund? Some people like myself need the distributions to pay some bills but if we can't access them because we need to reinvest them to maintain the investment's value, would a lower yielding product like HDIV work better in providing a distribution while growing your capital?
Great interview. I learned something interesting and new about YieldMax every time I see a Jay P interview.
Is the NAV charted separately somewhere? I want to understand that risk better.
ETFs are open ended funds so the stock price closely follows the NAV. its only with Closed end funds where it can disconnect greatly at times.
You mentioned to reinvest to prevent nav erosion and then also said this is an alternative income, so I guess one has to choose one or the other
Yeah, those objectives seem contrary to one another.
Nav errosion is a myth, it only looks that way because we are in a pending recession.
why? not to me.... investors can use these ETFs in many ways.
I re-invest some of the distributions back into YM and buy my core ETFs with the rest of the cash flow. I look at my portfolio as a whole entity which is beating inflation by far.
If you’re receiving 20 percent 30 percent 50 percent in income, at those premiums, NAV erosion is less of a concern, in my opinion.
GREAT interview! I only have about 30 shares of TSLY to test it out but am definitely waiting for the fund of funds by yieldmax that will have all of their single stock funds
How have you been liking TSLY so far? Any update?
what are the risks in these covered call option etfs? the dividend is guaranteed but the principal base is at risk?
th-cam.com/video/nTvytUyhnsU/w-d-xo.html
The problem with this strategy is that it doesn't use a Put buy to protect downside on the stock. It should use an IRON CONDOR. This is very risky when it comes to capital value of the stock.
Thank you as always, Adrian, for the information. ❤
Thank you so much Adrian! This interview was amazing! I learned so much!! Keep up the good work.
Glad you enjoyed it!
can you the yield max manager can the ETF be in a sythetic short position meaning the underling stock eg $NVDA or $TSLA goes thru the Call and or Put strike forcing the Fund to cover and buy back the stock at higher
Synthetic = fake. That is why it sounds intimidating.
If there will be an ETF of all the enhanced ETFs, will there be an additional MER on top of the underlying ETFs MERs ?
Awesome stuff
Agreed....another great interview. Such a great way to get monthly income......and such a large chunk, too.
What is the chance for these funds to go belly up? Im just learning about these etfs, there pretty new are u guys happy investing into these funds. I bought a small position into tsly, nvdy, oark.
Someone somewhere said:
High Reward = High Risk!💰🎲💥
Very informative! Look forward for the wrapper version of all Yieldmax etfs
You and me both!
I have one basic question, hopefully someone can help me better understand this. Let's take TSLY as an example. Consider a scenario where the TSLY manager sells option calls and the underlying stock (TSLA) rises well above the option strike price before the expiration date, in that case the buyer will exercise the option and purchase the underlying stock from TSLY. When this happens, the difference between TLSA market price and the strike price will need to be absorbed by the TLSY fund, so this money will come out of the TSLY fund NAV, is that correct? If this scenario involves a limited qty of option calls, then the NAV losses are manageable. But in an extreme case where the underlying stock rises up sharply and the ***majority*** of the TLSY option calls end up being exercised, wouldn't this have catastrophic impact to the TSLY fund NAV? I would like to know if I understand the mechanics correctly or not.
It doesn't "come out of the nav". NAV means NET Asset Value. So the NAV would just reflect the value of the holdings, in this case, price it was exercised at + option premium. Assuming they are writing Out of the money calls, you should still see some upside on a sharp bull run, you just won't see it all the upside which is the main draw back of this strategy, but if you are investing in the stock market anyway and plan to hold long term, this strategy is an infinite money glitch.
options can be settled in cash (these are) , not in stock. these ETFs do not hold the underlying. so yes the cash would come out of the fund. but dont forget that all calls are OTM so not only do they always capture some upside but they also make $ by selling the calls. you cannot ignore the fact that they make good $ actually selling the calls in the first place. but yes what you mentioned is the risk for any CC strategy which I asked Jay about in the video. Higher volatility = higher risk when it comes to ANY STRATEGY. just like owning Tesla vs Apple stock
Look forward to the etf of etfs. Thx for asking the queston. These interviews have been very helpful.
I watched Jay’s TSLY interview on Armchair Income, and was surprised that this interview about risk covered some new ground. Great job 👍🏼.
Webull does not allow selling options on any yeildmax, can someone recommend a broker that allows it? tia
are these still doing well ? all are down.
looking at stock charts are for children. adults understand things and look at total returns. if the underlying stock tanks, how can an ETF that holds the same stock not tank as well?
I just want to know, what happens to DFN, FTN upon termination date which is Dec. 1, 2024, I'm I obliged to sell the stock at market
price , or could I continue holding them if they extent for another 5 years. Thanks
You should watch his video about split share, it's explained. In short they are renewed 99% of the time, but if they're not renewed there's a high risk. We can lose our capital as written in the prospectus of these funds. I think(would need to revalidate) we would get the NAV minus -10$(to pay the preferred share holders), so possibly 0$. It's an extreme situation but one to be aware of. It's one of the reason why we should limit our allocation for split share in our portfolio.
Thank you Adrian 🙏
Should be way to protect downside moves by hedging without to much capital
They don't buy Tesla for collateral when they sell calls, they hold bonds. If you look at the TSLY holdings its calls and puts with 0% stocks and it says 125% bonds which are T bonds or T notes I bet. Its actually genius using bonds for collateral I think.
same here
Payout day is today. How come TSLY and AMDY were not received?
Got mine !
Holy fuck this guy's smart.
The question is what percentage of your portfolio could or should be in a Yieldmax. Especially considering the category of Alternative Investment.
No more than 1%
Thank you for the interview and the question @27:03.
Can Yield Max actually keep so many funds going if they need 30M in each fund to pay expenses. Seems like they are opening too many funds.
i think they will not have an issue hitting 30m for all of them with time....
AMD soooo volatile really looking forward to this one... and maybe jp because we will all go to zero looooong before jp and the boys dont get paid .... msft also in the boat with jp super safe....
lol this really made me laugh man. :) great job
Great video. Great channel. How to hedge tsly? I wished this question has been raised?
tsly is like a hedge on tesla stock. to hedge it? maybe get lower volatility ones?
I think you're the only one to pronounce Jay's last name correctly LOL
yup because im Italian
great to see all the info on how its done . i couldnt be bothered to spend my time to understand what it all means .. so glad to have clever people make me lots of money ..
Awesome interview! Currently OARK, TSLY, APLY and NVDY are on options chains. Do you happen to know when the other YieldMax ETFs will be on options chains too?
not sure what you mean
@@PassiveIncomeInvesting You can buy/sell puts and calls on OARK, TSLY, APLY and NVDY right now. I try to sell OTM puts on them, and if they go ITM and I get assigned, I'm good with that because I'll happily own another 100 shares. Was wondering if you had insight into when the other YieldMax ETFs will be on options chains (AMDY, DISO, etc). BTW, Defiance ETFs QQQY and JEPY are also on options chains.
Besides the dividend do you capture capital gains as well?
yes but its capped.
When short term bonds go down how much will this affect yields
no connection. this is options Yield . its based on volatility.
Theta Gang! 😂
This interview seemed to suggest it was an important metric in order to manage risk, where can $TSLY's NAV be followed daily?
The symbol for the NAV is TSLY.NV
on their website
Are they going to come out only 16:10 one CC ETF for various yield max ETFs?
Got answer in last segment
Great interview Adrian! 😀 I love these Yieldmax funds and I think it can give any PI portfolio a big boost without introducing too many risks. All-in-one yieldmax fund is a great idea. The whole point of being a PII is for someone else doing the work and we just collect the dividends.
TSLY is down 30% since last November's launch. So is the dividend offset by continued capital erosion? TSLA is up over the same time period.
Do the math if they are claiming 50+ percent in yield annually. And it's 2 months away from November, I'm going to go out on a lime and say its out preforming the underlying by atleast 10 percent. That's with no knowledge on my end and just looking at this post. You can find the answers to this by taking the distributions TSLY has been paying out each month, add it up and then add it to the nav and see how it lines up.
if the total return is POSITIVE , there is no issue
I think the best price to get in is below $13.50. Once it gets below $13. I 'd get sell put @ strike $12 or $11 to offset the possible losses.😊
Great interview. Thanks
🎉another great interview - you rock !
18:18 - yep.. I hear REX Shares is copying soon
yeah think they already are
Great last question on the all in one etf.
Great questions-thank you.
Glad it was helpful!
Rug pull
Love these Yieldmax ETF's , i can my account grow every month .
Great video😊
Also, would an ETF of ETFs have double the fees?
Not if it’s from the same company
Great interview very informative.
I heard him say in other interviews they can capture 80% of the upside of the underlying stock over the long term. Has anyone seen the data around this statement?
Never heard that and it's impossible for all scenarios
It's not impossible. The upside is how high the underlying stock price will go over time. If someone is really skilled at writing calls they could do 80% overall, that's counting even the down turns and out preforming the underlying with premiums. There are back testing done on covered calls on youtube. Do some research, a guy does back testing in 4 major market conditions and it shows that cover calls out preformed the underlying in 3/4 of the senerios.
it really depends on the volatility. its probably an average. it could be more , it could be less. if the stock goes up less than 5% when the calls are rolled over, it would mean 100% upside
How is a synthetic cc better than a pmcc?
Not better, there are te same!
Amazing interview
All in buying is TSLY CONY OARK NVDY
whoah thats a pretty big "ALL IN" going after the most volatile ones hehe
@@PassiveIncomeInvesting ill add the safer yieldmax ones later lol
Good interview. Is there anyway that you can get the companies that you have interviewed to make ETFs that play on the 1st of every month? I feel like this would be a very interesting move for them to do and there might me a big market for it also.
KLIP does
i def. do that have that power lol
@@carloscouto3832I am not interested in holding a chinese company etf/stock
This is really amazing Adrian!!! THANK YOU VERY MUCH!!!👍🏼👍🏼
No problem 👍
solid bro, new subscriber
Thanks for the sub!
The only thing that concerns me is tsly doesnt capture all the upside of tesla but caaatches all the downside of tesla. Example back in april tesla 170s, tsly 14's. And now tesa 240's and tsly is 14's. if Nav goes to single digits id be scared. This is why I am not reinvesting dividens but putting dividens into bcd in my roth like MAIN for now then wait a year or so see how tsly does in a longer time span
It's not meant to. It's for income, not capital appreciation
It’s hard to get onboard with these products as you can do alot of it yourself. You just need to learn and understand how the options market works. Limited upside and capturing all the downside for the “premium” reward is difficult especially when your not being taxed efficiently in a taxable brokerage and NAV is eroding overtime. So you loose NAV, your hit with taxes as ordinary income, limited upside due to out of the money calls all for the sake of a juicy premium. In the long run, your better off just sticking with SPY calls and puts.
@@theflightsimulationexperie6894 the thing about doing it yourself, you can ultimately be long a declining stock that's gotten Put to you, and it can continue to decline.
the point is tsly takes all the downside of tesla but only takes a portion of the upside so eventually tsly will drop down to 0$ and cant pay dividens anymore if it keeps on tkaing the full downside of tesla. You have to realize this can happen so the best way to protect yourself is to not reinvest and invest the divs into a stable stock and see how tsly performs in the next 2 to 3 years before fully reinvesting the divs.@@Alphahydro
yes we discussed this at length. this is the risk of any CC strategy.
How are these dividends taxed for the Canadian investor in a non registered account?
15% withholding Tax before it hits your account. Then you pay your Canadian Tax
probably mostly or all foreign income
100% As investment income, so at your marginal taxe rate but cra will deduct the tax withold by the US
Bit conneeeeeeeeeeeeeeeeeeeeeeeeeeeeht
lol i watch that like twice a week for a year now to laugh
Hi Adrian,
Are you aware of similar products in Canada? If not, what do you think of using these products in TFSA?
Weekly calls have new competition in daily calls that have recently been initiated in the market. I wouldn’t be surprised if premiums from funds with monthly calls have a hard time reaching target yields as more of the pie shifts towards daily. I wonder if Jay would include daily calls to build more yield. Some fund manager I’m sure will come out with a fund like that eventually.
weekly, daily, hourly. by the minute calls. who cares. lets gooooooooooooooooo
You would think the funds would adapt accordingly though, no? So they (and their investors!!!) don't get left behind...