They are call credit spreads Because you get a credit back, and they are settled by cash. The buy call cancels out the sold call, and you keep the gains. Jay has 3 options 1. He can add the gains to the NAV 2. He can pay out the gains in the form of a dividend. 3. If the call credit spread expired out of the money. He keeps the credit he received. Very simple.
What i learned from Jay's interview released yesterday with Adrian is that to pay for the bought covered calls they are buying, they will be selling calls with tighter strike prices that gives them more premiums that would be used to buy the spread calls. Hopefully setting up a net zero cost.
@PritGill-o9n i didn't say it was preventing the dropping nav if defiance and yieldmax pay out more than they earn. I was talking about how they are paying for the cost of the bought calls. I hold 30 derivative etfs... call and put etfs. I only reinvest about 30% of all input earn back into the etfs. And often not even the ultra high yielders. I am a buy and hold income investor so the nav drop isn't as big a concern as those that are growth investors and are silly enough to think these etfs are meant to provide great income AND provide nav growth. And btw... the Canadian cc etfs ARE actually holding and growing their navs. I am collecting great 12% to 19% yield on them and they are all up 5 to 30% in nav since I bought them.
Welcome AMZY. Hitting on your car dividend video you mentioned. I dont think its crazy to suppliment bills with dividend income, i just like to make sure at the end of the day I can cover those expenses with a regular paycheck so if all else fails you're not in the hole.
Hi RoD do you think you could do a video covering tax strategy on these dividend funds? I am a bit confused as whether dividends are qualified or non-qualified depending on holding period and if it makes sense to take realized losses on the stock position while collecting the dividend - does this cancel out the capital gains tax etc?
"Tell me in the comments what you want me to call it." Unnecessary work. That's what I'd call it. They just sell some good OTM calls and you don't need double the work. Not surprised AMZY gonna need that synthetic bailout.
Hopefully the market has patience with the AI rollout and the semiconductor sector continues to flourish and gives an avenue for the entire market expansion(5800-6200)😂 WELCOME AMZY🎉
This is my experience with CONY - Purchased 500 shares Jan. 24 at a cost of $11,260. The current value is $6,500. Total divs. paid out is $4,271. I’m rethinking this investment.
@@RetireonDividends Yeah, that’s what we all hope, that share price improves but is it realistic to think it might? What should we deduce that volume is so low?
They sell weekly Calls on the synthetic, that’s a spread. But they buy more Calls and they never sell Calls against them … that’s not a spread. That’s just game stop trading.
Dont buy these unless your looking for a total return approach. the distributions are just your own money back while your principal is goes down every ex date.
Tonights interview link: ruclips.net/user/liveuU3OY1sXBII?si=gFMJk92eBbT6Bh6C
Great work on the brief CONY and AMZY.. love it. Summaries are good!!
I agree, the detail trades are meaningless to me. Just give a general overview of the
trade results and estimates.
Thanks for the new coverage on CONY and AMZY much appreciated!
Glad CONY is still in your videos 😊
The new CONY format is good 👍...
Welcome Amzy. Thanks for trying something new. ❤❤❤
Welcome AMZY
Thank you RoD
Looking forward to the interview tonight 🎉
thank you friend ,your the best.
I like the new format!
Thanks for covering Cony. Welcome Amzy 😂
Glad you are still covering cony. I like the higher level breakdown. I get lost when you get into the weeds.
Friggin amzy time. Thanks for the update. Let’s gooooo!
You’re still dusting over CONY, which I’m good with. I’m really late watching, Hell you’ve already did the interview. Lol, welcome AMZY
Friggin welcome amzy!
Great job…keep this system it’s pretty good….
They are call credit spreads
Because you get a credit back, and they are settled by cash. The buy call cancels out the sold call, and you keep the gains.
Jay has 3 options
1. He can add the gains to the NAV
2. He can pay out the gains in the form of a dividend.
3. If the call credit spread expired out of the money. He keeps the credit he received.
Very simple.
Welcome AMZY… I like the briefs.
It would be nice if you can just mention what you are thinking of doing everyday on your options journey. I like your take on options.
What i learned from Jay's interview released yesterday with Adrian is that to pay for the bought covered calls they are buying, they will be selling calls with tighter strike prices that gives them more premiums that would be used to buy the spread calls. Hopefully setting up a net zero cost.
@PritGill-o9n i didn't say it was preventing the dropping nav if defiance and yieldmax pay out more than they earn. I was talking about how they are paying for the cost of the bought calls.
I hold 30 derivative etfs... call and put etfs. I only reinvest about 30% of all input earn back into the etfs. And often not even the ultra high yielders. I am a buy and hold income investor so the nav drop isn't as big a concern as those that are growth investors and are silly enough to think these etfs are meant to provide great income AND provide nav growth. And btw... the Canadian cc etfs ARE actually holding and growing their navs. I am collecting great 12% to 19% yield on them and they are all up 5 to 30% in nav since I bought them.
Welcome here AMZY !
Welcome AMZY. Hitting on your car dividend video you mentioned. I dont think its crazy to suppliment bills with dividend income, i just like to make sure at the end of the day I can cover those expenses with a regular paycheck so if all else fails you're not in the hole.
Call credit spread is the correct terminology.
Sticken with ya!!
Welcome AMZY 🎉
Hi RoD do you think you could do a video covering tax strategy on these dividend funds? I am a bit confused as whether dividends are qualified or non-qualified depending on holding period and if it makes sense to take realized losses on the stock position while collecting the dividend - does this cancel out the capital gains tax etc?
Either non qualified or roc
Spreads are fine
Friggin welcome AMZY prime costs $139/year
Positive vibes🎉
welcome amzy
"Tell me in the comments what you want me to call it." Unnecessary work. That's what I'd call it. They just sell some good OTM calls and you don't need double the work. Not surprised AMZY gonna need that synthetic bailout.
Welcome AMZY.
Hopefully the market has patience with the AI rollout and the semiconductor sector continues to flourish and gives an avenue for the entire market expansion(5800-6200)😂 WELCOME AMZY🎉
how about breaking the funds into the new Div date class
This is my experience with CONY - Purchased 500 shares Jan. 24 at a cost of $11,260. The current value is $6,500. Total divs. paid out is $4,271. I’m rethinking this investment.
Total return?
@@RetireonDividends Huh? It’s there in the comment $4,271 dividends paid out since purchase.
Oh lol my bad, guess I was half asleep when I read it. It’s been recovering a little lately at least .
@@RetireonDividends Yeah, that’s what we all hope, that share price improves but is it realistic to think it might? What should we deduce that volume is so low?
They recover slowly because they are capped each week with the exception of the spreads now if that actually get involved, we will see.
AMZY !
Please ask Jay if they are planning on diverse split on Ulty any time soon or ever? Thnx.
i cant wait for tomorrows video because as of this moment right now tsla is 250. lol.
The way this month going we may not want to see what they have to pay to close CONY.
Welcome amzy
Just call em spreads… then everyone is happy lol
Sounds good
"THE CHILDREN OF THE COMMUNITY ARE THE CHILDREN OF THE COMMUNITY" - KAMALA HARRIS.
Are you going to drop every ETF that does spreads now? I feel like you are overly grumpy about this
lol I’m going to do the 3 but will still complain
TSLY may profit from the $260 call BUY.
They sell weekly Calls on the synthetic, that’s a spread. But they buy more Calls and they never sell Calls against them … that’s not a spread. That’s just game stop trading.
Dont buy these unless your looking for a total return approach. the distributions are just your own money back while your principal is goes down every ex date.
5:58. Dividend car should have been done with YMAG or YMAX to be more diversified and stable over the loan period.
I think hes playing with Fire. It will be interesting to see how this works out. iF it does, its going to be a 1 % probability of it working out IMO.
Welcome AMZY
Welcome AMZY
Welcome AMZY