I really love the concept of income funds like QYLD, it has the cash generation risk of making bold bets on the growth of the economy. It basically holds stocks it’s writing otm call options on, if the stock grows to ITM it can choose to pay in stocks rather than damaging cash.
As a retail investor, I have zero time nor not enough money to invest in writing covered OTM calls, but I crave the idea of doing it. Would the best way to retain principle loss be to simply have part of my portfolio to hold major segments of the fund?
This seems like such a nice idea, am I missing somthing with this strategy?
Submitted June 18, 2021 at 02:42AM by wszxdea https://ift.tt/35FlbQ1
