Thanks!

Thank you sir!

It shouldn't be too long.

Welcome! Thanks for watching.

Thanks! Volatility is low but this past week moved it higher a bit.

Smart and good for you!

Wouldn't you be happier buying 2 weeks before ex-date, since the funds will pull back a bit the day after? Anyway, I am a buyer too. I have been trying to sell calls on SPY, but every time I do, it runs up and away, and I have to scramble. Hoping these pros can help me out with making covered calls work. Thanks

Interesting strategy to buy on xdiv date. I like it.

what are the tax benefits ?

Ha! Thanks.

Sure. Let me think about it.

I like it!

Will do! I know they have some in the pipeline.

I heard they coming out with IWMI next!

Is that from the 19As or your 1099? The 19A statements are not accurate and just an estimate. I only owned it for part of the year and I ended up around 70%.

FYI return of capital is NOT return of principal. Big difference, actually. Return of capital is merely an accounting term used for tax efficiency purposes.

Hey so I bought qqqi today (the day before EXDATE.. So I bought 5000 shares so will I get (5000 X 0.14) / 12 in a couple of days I read.. right ?

@@chrisarntz8556 yes that should be about $.60 a share per month for QQQI and $.50 per share per month for SPYI. Plus the return of capital provision at tax time.

​@@wealthadventures yes, me too wondering about ROC!!, can you please do a deeper dive into this please?

Good luck!

Nice! Good luck.

On my to do list to buy Monday - I’m addicted to monthly dividend 😂😂😂

I am invested in this etfs , you have more risk, but more upside also and if you reinvest the dividend it works fatser

Depends on how much of a down market you're considering. T-bill ETF ($BIL or $SGOV) currently earns ~5%. I looked at the 2022 performance of a bunch of covered call ETFs (DIVO, JEPI, NUSI, QYLD). They all had negative total return. DIVO and JEPI did the best and had a total return of -1.5% and -3% respectively. I'm invested in DIVO, JEPI and JEPQ. I think NUSI and QYLD are junk.

Sgov

You would be better in cash if the market pulls back but these should outperform with time IMO.

Probably right. It might just be a matter of time.

FEPI is only based on a few stocks that have high IV. That drives a higher premium and a higher distribution. That will also (likely) be reflected in any sort of correction that may occur. That is, it will have a bumpy ride! JEPQ and QQQI will be similar but their option strategy will be different and results will vary. For example, how are out of the money they sell their strikes would be a factor. Further OTM allows for more upside participation but reduces your premiums from the options. Closer reduces your upside but brings in larger premiums.

@@wealthadventures i thought all these options are between 2%-4.5% out of the money, with contracts about 4 to 8 weeks out. I thought all three of these have essentially the FANG stocks plus hi vols. Do you really think there is up to 1500 basis point difference in these strategies? If its valid, that would make a great video... if it's fishy, then it'll make a better video.

Too new to have much info. Should function similar to SPYI.

Hi. Another person asked above so going with that again... There should not be an issue with the NAV but the concern is a whipsaw move. For example, the index plummets down 20% one month and back up 20% the next. If you just own the stock, no issue. If you sell a call, you get that gain month 1 but during month 2 you can "lock in the loss" with the call being sold limiting your gain. Make sense?

@@wealthadventures To be honest I am still lost on the last part. Not sure what “lock in the loss” means. Perhaps you can make a video about this whipsaw scenario

@@trqrider94 I can work on a video. With QQQI or other covered call ETFs, they sell a strike price that is above the current stock price. They collect a premium for doing this but if the stock (index) takes off and goes past the strike price, they do not participate any longer in the gain of the stock. It is limited by that strike price. If the stock plummets the next month back to the original value, you may have a loss despite the stock price being the same. I'll work on a video.

I like a lot of those funds. It would be missing international flavor and small caps perhaps.

The perk in my opinion is that if you hold it for over a year, you will be able to sell it and realize a long term gain instead of a short term gain. The ROC sheltered you from much of the short term gain. Not tax advice!

My largest holdings in this area are JEPI, JEPQ, and DIVO. I think QQQI and SPYI are good options. SPYI has performed well but I only have a small position.

@@wealthadventuressmall position in what percentage, so I can adjust mine.

Yes. Same setup. I take it you are not a fan? It does allow you to reduce tax burden in the current year so that gains can become long term gains vs short term. However, not receiving anything is the best tax solution.

How is a return of your own capital can be considered a gain?..

@@bonanzatime Not tax advice!... But ROC will adjust your basis. So if you invest $10,000 and get paid $800 of ROC this year, you would have an adjusted basis of $9200. If you were to sell the stock, you would have to pay tax on that $800. Nice perk is that if you hold the stock for over 1 year, it would become a long term gain.

I get it!

Perhaps... watch and see! So far it is doing fine but it is so new. No need to rush in.

If you own shares prior to the Ex-Date, you get the dividend/distribution. Just be aware, the distribution will drop the value of the fund by the amount distributed. Plus you may have tax to pay on the distribution.

I'll be talking to him again soon and will give him another opportunity...