Another great introduction video. Thanks, Dave! I like your explanation of how the mechanics of these ETFs work. I guess I do similar things as these funds do, with some extra. I own SPY and sell covered calls on it. Then, I also do the 50/50 approach. 50% cash, 50% SPY. With my cash, I also sell puts for lower prices. This way, I'm collecting two premiums and the interest on my 50% cash. With most of the time, my calls not getting exercised, I also collect the dividend on the SPY every quarter. Boy, I love this options trading. For sure, it should postpone the alzheimer/dementia 😊
I will be entering dividend space in retirement very shortly , I will be monitoring this closely, but I definitely love jepi and Jepq the play might be to buy some of each for a period of time. Anytime you can get a 10% dividend with minimal NAV erosion. I’m all for that.
Nice video once again. I liked the chart showing the range of outcomes. There's getting to be a lot of players in this space. It will be interesting to look back in ten years to see which one had the best return. Mahomes had a worse year statistically than before but he finds a way to win when it counts. Have a great time next week.
Thanks for another great overview of a new fund. It will be interesting to compare total returns for all these covered call funds in a year or 2 when we have more data.
Thanks! We will see which hold up in the long run. Some of the originals should be seeing outflows with similar strategies and lower expenses. Adapt or move aside! Lol.
SPYI and JEPQ have done very well for me, but I will definitely watch these two to see where things go... it seems like this high dividend options space is getting very crowded... "too many options" :)
Just started watching your video's Dave. Great job on explaining the mechanics for all. Relaxing and educational, don't get the feeling someone is trying to blow smoke. Thanks, and keep making more videos.
I have looked at them. I have JEPI and SPYI. I just sold half my JEPQ, I'm going into QQQI with that. I also have some FEPI. I'm thinking that is enough options. Glad you will be enjoying a good time in Vegas. 🎉
thanks for covering these new etfs! I'm retired so I need the income. JEPI and JEPQ dividends have been lacking so far this year, so I'm going to move half my holding into these. The ETF strategy's similar but I like spreading this out between 2 companies now. competition will be good :)
@@DP52001 Agree, this one sells at the money but in varying quantities, one sells at the money, one sells out of the money, some vary distance from strike price. some sell month out, some sell daily...... I'm getting confused. A video on which would be better in varying market condition - up, down, sideways would be very useful.
Dave Nice shirt and great dry humor lol! Suggestion: Sort of bringing all of the info together that you produce on the CC ETF's. Would you produce 1 video ranking the top 5 covered call ETF's based on total return compared to the S&P500 in 3 different market environments? Video 1- Upmarket, Video-2 Down market and Video 3-Sideways market (5% change). Markets could be evaluated on a quarterly basis. I believe that these products are needed by a lot of people however the direction of the markets does affect their returns tremendously. Given this information your subscribers could move from ETF to ETF as meets their needs.
Thanks for the review. I'm looking for a ETF call strategy that captures more of the upside so I picked up a few shares of these. So far so good, I wonder how they will do in a down market.
In the very short period to date, the GPIQ has outperformed the JEPQ. I will probably split my JEPQ position between the two. Have you already had a look at the QQQI and perhaps even have an opinion on the new Fund?
I have not looked at QQQI but it is on the list. I do think a nice soup made from the best of these is a good way to go if you want to own these products.
Re-re-re-watching this video. :) It gets close to addressing (or maybe it does address and I'm just dumb) the question of "forget the stock price - just go for premium". What if I did this in my personal portfolio? Simply sell ATM, collect premium, take assignment on CSPs and/or have shares called away on CCs. Does it matter if I step in and out of ownership being, again, agnostic to the actual underlying? I ask this from a standpoint of simply wanting income in the 12% range annually. My portfolio has grown to a point where, with a ~12% income/yield, I could live comfortably. Maintaining NAV would be ok, and I would still be selling CSPs and CCs only on high value companies or ETFs that I like (HD, XLV, AAPL, GOOG, SPY, VOO, QQQM, etc). Thoughts? Thanks again! Sorry I've posted so many times on this single video! :)
Hi. I understand where you are coming from. I would sign up for 12% as well. It can work IMO but I would not "forget the stock price". What has helped me was learning patience when wheeling stocks. Those whipsaw moves in stocks/etfs can eat up gains from options quickly. Also be aware of wash sale rules and lean toward ETFs versus single stocks. Again just my 2 cents. Maybe start with a portion of your portfolio to test your game plan?
Like how consistent income and capital appreciation is handled depending on market conditions. Opening a small position on GPIX. Going for the Niners also 🏈 …
So many of these covered call funds being introduced. Do you think the value of the premiums will decrease over time as more are being sold to these ETFs? I'm a bit worried about this.
I like the videos on the CC ETF's, but I think you may make the wrong comparison. If an investor buys, say JEPI, for income, they will likely replace another investment that had the same purpose, namely bonds. I keep some JEPI in the "income" portion of my portfolio along with Bond funds, Preferred stock funds, Reits and a few dividend stocks. I am more interested in how JEPI performs compared to bonds and other income investments than compared to growth investments. I think the more relevant comparison is JEPI to BND. I don't necessarily require the same growth from an income investment as a growth investment. I have another large portion of my portfolio for growth.
Dave, I see they did an at the money call option for February '24. I don't think they are *limited to at the money calls*. The prospectus just says they sell calls.
As with your sports comments, after almost 40 years living in the US, I still don't understand that sport which has hijacked the name of the sport that I, and the rest of the world, call football. I guess if it were called bullsball or forceball or some name like that, I wouldn't feel the negativity of my favorite sport's name getting stolen and would actually follow it. 😅
I own a few shares of GPIQ. Watching it and mixing it in with JEPQ. Performance has been similar and both are lagging QQQ slightly since GPIQ was launched. What do you think?
@@brettdeluca3166 They can help. For example, if you are reinvesting the distributions it will lower your cost basis MORE versus a classic stock ETF that does not sell calls.
@@wealthadventures jepq is going in my ira account 30k I’m keeping Jepi in my taxable at this time. Any suggestions? Right now I’m getting 5.17 in my money market. Should I wait until they lower interest rates or buy now jepq.
Informative video. Can you please cover FEPI (higher dividend & higher performance than GPIQ & JEPQ) & No cost S&P Etf BKLC in your next video. Thanks.
Go 49ers! I'm a Bengals fan so honestly don't care but I never cheer for the popular kid. It's interesting how a lot of these call option ETFs are all slightly different. I'm retired so I like em all (JEPI, JEPQ, SPYI, FEPI, BALI, TUGN, BST). I can cost average and buy at a reasonable price. Given the only risk is nav depreciation and someone else manages it for a low fee what's not to like. Saves me a lot of time and worry in managing my own call options. Great time to be an income investor! I do wonder how they will manage capital gains and when they take them, how they rebalance.... Probably in the prospectus somewhere. I appreciate the example you gave. When I hear at the money it makes me nervous in terms of nav depreciation (global x covered call ETFs like qyld). I think this one is a wait and see. Have fun at the game!
I grew up/live in Cbus and my dad was a Cinci fan so followed suit. Haven't been to a game since my wife and I had kids but hoping to get to one when they are older. Have fun! Appreciate all your videos.
Could you do a video on MLPA and MLPX. Especially the tax treatment. Seeing conflicting info on whether the ROC from an MLP carries through when in an etf. Thanks. Love the channel.
Why not buy the underlying stocks and write your own call and put options? When you sell a call option and in case it looks like you are going to get stopped out buy the call options back to close position so you do not lose your stock.
Certainly an option and what I do myself with the majority of the funds I earmark for this area. However, it can be cost prohibitive and the feedback I get is that many don't want to handle options themselves.
ATM option writing means loss of underlying assetts in a bull market. Can you do one on SPYI and ISPY please? Between Those above and Goldmans and JEPI and JEPQ which ones stand out with regards to less NAV erosion and overall total returns? Though GS etfs have been around only for few months
Hard to say with some of the new products. My largest holdings in this area are JEPI, JEPQ, and DIVO. I have covered SPYI a couple times and ISPY is on the list.
What I’ve been looking at now besides expense ratio and yield is the way they distribute dividends. Are they qualified, ROC, and any special tax treatment like SPYI. I’ve been looking at ISPY as some distributions will be ROC. Would be cool if you take a look at it 👍🏽
Selling a call is a bearish position. If the S&P goes up, the cost to close an S&P call would increase from what you sold it for initially. You would pay more to close it and lose on the option.
Sounds comparable to QYLG then but a little more dynamic? QYLG has been pretty good imo better than QYLD for sure and maybe better than JEPQ so could be pretty good maybe
Will retire in 4 years and i am looking to live off the income. As long as i can spend all the income and no nav erosion i am good thats why i have this in my portfolio, hopefully it works , i would appreciate your opinion Jepi Jepq Spyi Qqqi Gpix Gpiq Divo Utg Utf Bst Rqi Rnp Bali
Hi. I'm not a fan of most CEFs. I think some of those will distribute income and hold their value or grow. It just depends on what your distribution % needs to be so be sure to look at total return.
@@wealthadventures awesome in your opinion would those CC etf would hold better? For example If you compare Jepi and utg , Jepi performed better. I think it would be a good example
They can work in a retirement account but they can also be used in a taxable account. Depending on your use case I suppose. Certainly want to account for your tax situation.
@@wealthadventures Appreciate your thoughts. Been sitting on the side lines with a big pile and waiting but no major drop yet. February is always interesting.
@@wealthadventuresI sat way too long buying 30 day T-Bills. T-Bills were safe while I waited for the big correction that never came. I have SCHD and Oil stocks but sold all the others for a profit. Cash is making 4.98 in Fidelity SPAXX. Was looking to buy a big mix of JEPI, JEPQ, SPYI and more Oil stocks. Ps great videos
![[UNCUT] The Loyal Pin ปิ่นภักดิ์ EP.4 (4/4)](http://i.ytimg.com/vi/d3l5rxl5CVo/mqdefault.jpg)
Another great introduction video. Thanks, Dave! I like your explanation of how the mechanics of these ETFs work.
I guess I do similar things as these funds do, with some extra. I own SPY and sell covered calls on it. Then, I also do the 50/50 approach. 50% cash, 50% SPY. With my cash, I also sell puts for lower prices. This way, I'm collecting two premiums and the interest on my 50% cash. With most of the time, my calls not getting exercised, I also collect the dividend on the SPY every quarter.
Boy, I love this options trading. For sure, it should postpone the alzheimer/dementia 😊
I still do most of my own income portfolio myself. SQY, QQQ and a host of stocks using puts and calls.
I will be entering dividend space in retirement very shortly , I will be monitoring this closely, but I definitely love jepi and Jepq the play might be to buy some of each for a period of time. Anytime you can get a 10% dividend with minimal NAV erosion. I’m all for that.
SPYI has been doing well. That's an option too.
Almost there! Congrats.
Nice video once again. I liked the chart showing the range of outcomes. There's getting to be a lot of players in this space. It will be interesting to look back in ten years to see which one had the best return. Mahomes had a worse year statistically than before but he finds a way to win when it counts. Have a great time next week.
Thanks! Mahomes is a winner. I appreciate his game but pulling for the 49ers!
Thanks for another great overview of a new fund. It will be interesting to compare total returns for all these covered call funds in a year or 2 when we have more data.
Thanks! We will see which hold up in the long run. Some of the originals should be seeing outflows with similar strategies and lower expenses. Adapt or move aside! Lol.
SPYI and JEPQ have done very well for me, but I will definitely watch these two to see where things go... it seems like this high dividend options space is getting very crowded... "too many options" :)
Lot and lots of products hitting the market. Good for us I suppose.
Congrats, you're the only financial guy on Utube I don't immediately turn off when they try to be funny. I really enjoy your videos.
Ha thanks.
@@wealthadventures But if you introduce those cheesy stock videos I'm out.
Just started watching your video's Dave. Great job on explaining the mechanics for all. Relaxing and educational, don't get the feeling someone is trying to blow smoke. Thanks, and keep making more videos.
Thanks! Nice to hear.
I have looked at them. I have JEPI and SPYI. I just sold half my JEPQ, I'm going into QQQI with that. I also have some FEPI. I'm thinking that is enough options.
Glad you will be enjoying a good time in Vegas. 🎉
Thanks! I keep hearing about QQQI. Guess I need to take a look.
thanks for covering these new etfs! I'm retired so I need the income. JEPI and JEPQ dividends have been lacking so far this year, so I'm going to move half my holding into these. The ETF strategy's similar but I like spreading this out between 2 companies now. competition will be good :)
I certainly support the idea of making a soup with the best of these. Toss in the good and toss out the bad!
Dave we need your top ETFs in this space for dummies and what role they would have in a portfolio for dummies!
Agree!
Ha! Ok. A lot of these need time IMO. Hard to tell based on such a short history.
@@DP52001 Agree, this one sells at the money but in varying quantities, one sells at the money, one sells out of the money, some vary distance from strike price. some sell month out, some sell daily...... I'm getting confused. A video on which would be better in varying market condition - up, down, sideways would be very useful.
Dave
Nice shirt and great dry humor lol!
Suggestion:
Sort of bringing all of the info together that you produce on the CC ETF's.
Would you produce 1 video ranking the top 5 covered call ETF's based on total return compared to the S&P500 in 3 different market environments? Video 1- Upmarket, Video-2 Down market and Video 3-Sideways market (5% change). Markets could be evaluated on a quarterly basis. I believe that these products are needed by a lot of people however the direction of the markets does affect their returns tremendously. Given this information your subscribers could move from ETF to ETF as meets their needs.
Appreciate the idea! Let me think about it.
I have some JEPQ in my ROTH. Tax free dividends
Loved the video. Especially the 'boring' OTM versus % ATM section.. Greatly appreciated. Thank you!
Enjoy the Super Bowl!
Thanks! Appreciate the feedback.
Thanks so much for the elegant explanation of the option strategy. It's renewed my interest in these funds. Thanks!
Glad it was helpful!
Have fun in Vegas dave! I own both of these in my income portfolio. I do appreciate that low expense ratio
Will do! I'm ready for some blackjack!
Thanks for the review. I'm looking for a ETF call strategy that captures more of the upside so I picked up a few shares of these. So far so good, I wonder how they will do in a down market.
Good question! Time will tell.
"Professor" Thank you for sharing your knowledgable research. You are smart/wise magnanimous.
So nice of you. Thanks!
In the very short period to date, the GPIQ has outperformed the JEPQ. I will probably split my JEPQ position between the two. Have you already had a look at the QQQI and perhaps even have an opinion on the new Fund?
I have not looked at QQQI but it is on the list. I do think a nice soup made from the best of these is a good way to go if you want to own these products.
Re-re-re-watching this video. :)
It gets close to addressing (or maybe it does address and I'm just dumb) the question of "forget the stock price - just go for premium". What if I did this in my personal portfolio? Simply sell ATM, collect premium, take assignment on CSPs and/or have shares called away on CCs. Does it matter if I step in and out of ownership being, again, agnostic to the actual underlying? I ask this from a standpoint of simply wanting income in the 12% range annually. My portfolio has grown to a point where, with a ~12% income/yield, I could live comfortably. Maintaining NAV would be ok, and I would still be selling CSPs and CCs only on high value companies or ETFs that I like (HD, XLV, AAPL, GOOG, SPY, VOO, QQQM, etc).
Thoughts?
Thanks again! Sorry I've posted so many times on this single video! :)
Hi. I understand where you are coming from. I would sign up for 12% as well. It can work IMO but I would not "forget the stock price". What has helped me was learning patience when wheeling stocks. Those whipsaw moves in stocks/etfs can eat up gains from options quickly. Also be aware of wash sale rules and lean toward ETFs versus single stocks. Again just my 2 cents. Maybe start with a portion of your portfolio to test your game plan?
Like how consistent income and capital appreciation is handled depending on market conditions. Opening a small position on GPIX. Going for the Niners also 🏈 …
Good luck! I will be watching.
Wish they had the ex dividend info on the site. NVM, I found it the next upcoming ex date is Monday 3/4/2024. The previous ex date was 2/2.
So many of these covered call funds being introduced. Do you think the value of the premiums will decrease over time as more are being sold to these ETFs? I'm a bit worried about this.
I'm not concerned about that myself. Premiums are driven by expected volatility.
I’m intrigued by these etfs
Put them on the watch list!
I like the videos on the CC ETF's, but I think you may make the wrong comparison. If an investor buys, say JEPI, for income, they will likely replace another investment that had the same purpose, namely bonds. I keep some JEPI in the "income" portion of my portfolio along with Bond funds, Preferred stock funds, Reits and a few dividend stocks. I am more interested in how JEPI performs compared to bonds and other income investments than compared to growth investments. I think the more relevant comparison is JEPI to BND. I don't necessarily require the same growth from an income investment as a growth investment. I have another large portion of my portfolio for growth.
Good points. Thanks for contributing! Always good to hear how others approach these products.
Well done on the t-shirts sir...LOL!!! Have a great time in Vegas!
I promise I will! lol.
Dave, I see they did an at the money call option for February '24. I don't think they are *limited to at the money calls*. The prospectus just says they sell calls.
Yes. Not sure if that will always be the plan. Previous month was also ATM but may change.
Bought into these last week. Also YBTC for an option strategy on bitcoin futures.
YBTC... That should be a fun ride!
I'm in both!
Great job- you rock man!
Ha! Thanks!
I’m waiting to buy qqqi
It is new to me!
Which do you think uses a better strategy? GPIQ/X or JEPQ/I?
They both have some merit. I lean toward JEPI/JEPQ but still think that mixing several together is a good option.
As with your sports comments, after almost 40 years living in the US, I still don't understand that sport which has hijacked the name of the sport that I, and the rest of the world, call football. I guess if it were called bullsball or forceball or some name like that, I wouldn't feel the negativity of my favorite sport's name getting stolen and would actually follow it. 😅
Ha! My #1 sport has always been "soccer" but I still enjoy American football.
@@wealthadventures "soccer"? I take that "American Football" and Football... "soccer"? No Thanks 😁
@6:20 when they sell 37% at the money. dose it mean we will have 63% appreciation or we will get 37% appreciation ?
I want to see how they perform during a down market before I commit any money to them. Otherwise, so far, they look encouraging.
I agree. Too early.
Just watch. I’m waiting for your recommendation.
I own a few shares of GPIQ. Watching it and mixing it in with JEPQ. Performance has been similar and both are lagging QQQ slightly since GPIQ was launched. What do you think?
@@wealthadventures then I feel it’s doing it’s job when the market flat.
@@wealthadventures these type funds good in a recession or sell off market?
@@brettdeluca3166 They can help. For example, if you are reinvesting the distributions it will lower your cost basis MORE versus a classic stock ETF that does not sell calls.
@@wealthadventures jepq is going in my ira account 30k I’m keeping Jepi in my taxable at this time. Any suggestions? Right now I’m getting 5.17 in my money market. Should I wait until they lower interest rates or buy now jepq.
Informative video. Can you please cover FEPI (higher dividend & higher performance than GPIQ & JEPQ) & No cost S&P Etf BKLC in your next video. Thanks.
Hello. I have covered FEPI:
th-cam.com/video/xgUAp4-naUE/w-d-xo.html
Go 49ers! I'm a Bengals fan so honestly don't care but I never cheer for the popular kid. It's interesting how a lot of these call option ETFs are all slightly different. I'm retired so I like em all (JEPI, JEPQ, SPYI, FEPI, BALI, TUGN, BST). I can cost average and buy at a reasonable price. Given the only risk is nav depreciation and someone else manages it for a low fee what's not to like. Saves me a lot of time and worry in managing my own call options. Great time to be an income investor!
I do wonder how they will manage capital gains and when they take them, how they rebalance.... Probably in the prospectus somewhere.
I appreciate the example you gave. When I hear at the money it makes me nervous in terms of nav depreciation (global x covered call ETFs like qyld). I think this one is a wait and see. Have fun at the game!
I'm a Bengals fan! Grew up in Dayton and went to games in Cincy. However, have to pick a side for the Super Bowl so going with the 49ers.
I grew up/live in Cbus and my dad was a Cinci fan so followed suit. Haven't been to a game since my wife and I had kids but hoping to get to one when they are older. Have fun! Appreciate all your videos.
Could you do a video on MLPA and MLPX. Especially the tax treatment. Seeing conflicting info on whether the ROC from an MLP carries through when in an etf.
Thanks. Love the channel.
Sure. I will take a look. Always appreciate ideas!
Love it. Except I can’t get 5% on my cash. Can you hold tbil or something till you get assigned?
Or does it have to be in cash?
I'm thinking this is for the video on LQD?... If so, depends on your broker. Might be good to call and see if they have any options.
In your opinion do you think dividend investing will outperform leap call options, repurchasing leaps once the original expires?
I like them better than jepi and jepq because they own all the stocks in the index
Yes they do! Forgot to mention that as a difference.
Why not buy the underlying stocks and write your own call and put options? When you sell a call option and in case it looks like you are going to get stopped out buy the call options back to close position so you do not lose your stock.
That involves a lot more capital to employ that strategy
Certainly an option and what I do myself with the majority of the funds I earmark for this area. However, it can be cost prohibitive and the feedback I get is that many don't want to handle options themselves.
Yep playing around with covered puts and calls looks like it could turn into a full time job and stress. @@wealthadventures
ATM option writing means loss of underlying assetts in a bull market. Can you do one on SPYI and ISPY please? Between Those above and Goldmans and JEPI and JEPQ which ones stand out with regards to less NAV erosion and overall total returns? Though GS etfs have been around only for few months
Hard to say with some of the new products. My largest holdings in this area are JEPI, JEPQ, and DIVO. I have covered SPYI a couple times and ISPY is on the list.
What I’ve been looking at now besides expense ratio and yield is the way they distribute dividends. Are they qualified, ROC, and any special tax treatment like SPYI. I’ve been looking at ISPY as some distributions will be ROC. Would be cool if you take a look at it 👍🏽
Hi. I'll take a look at ISPY. Thanks!
You endlessly nail it…good content and some solid laughs along the way…keep it up! 😊
Thanks!
Do covered call goes up when stock market goes up or down? i.e: If msft goes up, does it pull up GPIQ or pulls it down?
Selling a call is a bearish position. If the S&P goes up, the cost to close an S&P call would increase from what you sold it for initially. You would pay more to close it and lose on the option.
@@wealthadventures thank you for the clarification, very helpful
Interesting! Thanks for the video. Any fellow rHENRYs here?
Thanks!
These funds are like Pokemon to me....I gotta collect them all:)
Haha! Make a big covered call soup.
Sounds comparable to QYLG then but a little more dynamic? QYLG has been pretty good imo better than QYLD for sure and maybe better than JEPQ so could be pretty good maybe
That is a fair comparison I think. Lower fees will help these as well.
They are babies ! 30 million ! Thats tiny mate !
True! Adding it to the watch list.
Qqqi plz
Wow so many of these! QQQI.
watch
I agree! Lol
Sounds like a MAGA guy. Too bad.
Will retire in 4 years and i am looking to live off the income. As long as i can spend all the income and no nav erosion i am good thats why i have this in my portfolio, hopefully it works , i would appreciate your opinion
Jepi
Jepq
Spyi
Qqqi
Gpix
Gpiq
Divo
Utg
Utf
Bst
Rqi
Rnp
Bali
Hi. I'm not a fan of most CEFs. I think some of those will distribute income and hold their value or grow. It just depends on what your distribution % needs to be so be sure to look at total return.
@@wealthadventures awesome in your opinion would those CC etf would hold better? For example If you compare Jepi and utg , Jepi performed better. I think it would be a good example
Should this be in a retirement account
They can work in a retirement account but they can also be used in a taxable account. Depending on your use case I suppose. Certainly want to account for your tax situation.
@@wealthadventures Appreciate your thoughts. Been sitting on the side lines with a big pile and waiting but no major drop yet. February is always interesting.
@@jimdixon6688 I have a cash stash as well but slowly adding to positions. Higher for longer will still pay 5% while we figure it out.
@@wealthadventuresI sat way too long buying 30 day T-Bills. T-Bills were safe while I waited for the big correction that never came. I have SCHD and Oil stocks but sold all the others for a profit. Cash is making 4.98 in Fidelity SPAXX. Was looking to buy a big mix of JEPI, JEPQ, SPYI and more Oil stocks. Ps great videos