CEO behind first "zero-day" options ETF
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- Опубликовано: 21 сен 2024
- ETF Edge, September 18, 2023
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This is a great fund. In a down market.. you only take a hit on the days it’s down more than the you got the premium.. meaning if you collected 1.00 but the underlying moves down 30 cents you keep .70 percent. This is how and why they win.. the qqq typically does not move more than the day option and your theta is collected way faster .
Correct
Quite the opposite. You are exposed to all of the downside (minus a little bit of premium) but capture none of the upside.
It's really only good when the market is flat or goes up, then they capture the full premium.
In the interview they say that this is comparable to a covered call strategy. That's only true if you write in the money covered calls limiting your upside potential to 0. Who does this?
@@TBasianeyes Well, that’s the good thing you can get premium on side ways markets and upside markets which throughout history last much longer than bear markets. Even if it goes down, like with any stock, stocks will go down with the bearish market conditions. This is a safer alt than putting the eggs on one stock like TSLY, CONY, ect while collecting a nice payout.
@@TBasianeyes what downside.. it’s daily .. so every day they either win or WIN if the market moves down.. the fund may track in that direction, however that just means your buying at a better price. Why are we so concerned about buying at lower prices.. if you’re willing to buy at 20 then that same 20 doubles it’s purchasing power if the stock is @ 10. Because these are funds we are not worried about earnings and other things just how much cash can this thing throw off and at what cost to me. It having a “down” month means that all month they collected daily premiums and now my div should be a fatty.
They are selling put options. If the index they track goes down 5% in a day they pay the option holder the 5% difference out of their cash balance when it expires.
They don't capture any of the upside when the index rebounds because they are not invested in it, they hold cash.
Sure, you have daily income but your invested money is eroding away with every down day.
Pure Casino
Will the Wash Rule prevent the losses from being deducted from the gains?
60% 😅 sheesh i don't mind taking profits off a 15-25 percent OTDE trade.
What happens when the market goes down 10 percent in a day?
They have to pay the 10% from their cash balance. In return for taking this risk they get a little bit of premium. They say that this should be around 0.25% but that won't make any difference to the loss because all premium made is paid out as cash dividends.
The real problem comes when the market recovers, they won't capture any of that because they don't actually hold the QQQ - they only hold cash.
Absolute worst case scenario would be market going down 10%, up 10%, down 10%, up 10%, down 10% in a week.. They'd be down 30% at the end of this
Yeah definitely hold this in your retirement account 😆
Incredible
They will always be FDs to me! Iykyk
gime that money babe!!!! uhu!!!
this seems dumb. trading daily options every day will have a lot trading fees eat into the premium. and then you have the fees of the ETF fund itself.
Wow, fee is nearly 1% lol😂
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This woman has no idea what she's talking about. In a market downturn, not only she won't be able to sell puts but also inherit the loss from volatility. This will go to ZERO
Wrong
Maybe they should have you on next time?
In downturn, she maybe hit by high Gamma, but high vol will defiantly push up Vega so the period length of vol is key to make extra or loss money. Aka, in downturn, not only can she sell easily, but also more premium. U kid don’t know what the F u r talking ab
@@Fj8282hahaboom! Mic Drop.
You don't know anything.