I hope this breaks it down for you. www.nasdaq.com/articles/like-night-and-day#:~:text=Day%20volumes%20dominate%2C%20but%20night,trading%20happening%20during%20the%20day. www.ft.com/content/1cc17824-3077-4e39-9a99-cbccc83a2251 papers.ssrn.com/sol3/papers.cfm?abstract_id=3596245
Question: if the overnight returns are superior over time...why bother with the covered calls....why not just create an etf that invests daily in overnight returns? Is there such and ETF or fund?
@@shrdinc that doesn't make sense? as the fund is already incurring those trading costs. i am asking why not just drop the 0DTE aspect of the strategy, please explain thanks. TD
Brad, I knew you were brilliant even without the letters. You are an absolute blessing for the investing community. I immensely appreciate all your insight.
You're the best! I hated to throw out the letters but some people have no clue. I really would like to have lunch with the gardener as I bet I could learn a thing or two from him.
Brad, I can't say enough positive about this video! All my years of stock market knowledge, options, ect... I have never thought nor heard anybody bring this up before. I had no idea most of the gains were made after-hours! A lot of the market moves now make more sense! Keep up the good work!
Glad it was helpful! I left links to all everything in the pinned comment and in the description for reference. I know it but not to the extent of what the research shows.
Someone told me about another fund today. I will start tracking them but I have have a feeling that they will have a lower payment. I have the same confidence now also.
@@Income_Architect RUT and NDX have similar volatility and sometimes RUT even more, so I expect premiums from RDTE to be even better than QDTE. But of course RDTE will be a bit more volatile...
Thank you for sharing, very interesting. Makes a lot of common sense to try and not cap the upside. I appreciate the videos you take time to make, keep it up.
Thank you for sharing your research and findings. No one else brings up these gems, let alone got the passion to break it down for us so understandable. Seems like we need more of these 0DTE strategy ETFs available for income focused retirees for passive investing in a safer way. Thank you
I have another one someone pointed me to. I already reached out to them. They actually hold spy and not a PMCC. I looked at their strikes yesterday. There are some others but they use swaps. I really don’t like that transparency or lack of transparency. I actually want to see it so I can understand.
Another great video!! I liked the overnight exposure with the Roundhill funds. That was very appealing. You video did a great job of outlining the benefits of the overnight exposure and the details behind it. Thank you. Brad, putting together a sample income focused portfolio may make great topic for your videos. I think actual security selection can be very person (e.g. risk tolerance), but to me it is like a puzzle and you need the right pieces. XDTE, QDTE, SVOL, OXLC, PAXS, and XFLT (or BGT) are a few of my favorites. I like the Income Factory book in the background. It was a great book. I am trying to implement his strategies.
@@Income_Architect Thank you for considering the point. Perhaps a small portfolio (much you have already covered) would do the trick, 5-7 holdings. PortfolioVisualizer may produce much of the content to cover. I feel that pulling the different funds together might be helpful to others. It can be tricky, in my humble opinion, to piece the different pieces together.
Wowww. This information is absolutely phenomenal!! I had never heard this explanation before. Thank you for sharing such valuable insights and information. You are a treasure sir. Blessings and favor to you.
Wow! That overnight performance vs intraday graph is amazing. I had no idea. I knew it moved overnight because of news, overseas trading, and aftermarket domestic sessions, but I would have thought most of the movement happened during domestic (US) intraday. This definitely validates leaving the options off overnight for that capital appreciation.
@@faitaccompli5878 They are not the only ones. I think Roundhill is not managing their calls and there are other ETFs that are doing better by managing the calls. 0DTE has 4.5 times more premiums then longer dated calls at the same delta.
8% scraping off the top is easy. 10% scraping off the top easy. The last look things start to look a little hmmm near the 15% of the original investment on a yearly bases.
Thanks for sharing this information. Very useful to know, and a reason for the excellent performance of these funds. I don't get the connection between gains during after market hours and Nav erosion. For me me Nav erosion is very simple. I buy at 40$ today. If a year from now, and without having reinvested any dividends back into the fund, I have to sell for less than 40, there is Nav erosion. For example QDTE has suffered from NAV erosion, no questions about that on my mind. Conversely, XDTE has not. It's not that complicated. Call it capital depreciation or whatever fancy name one can think. In any event keep the good work. 😎 Looking forward to hear your views on CLOs, of which I own several. I got into them due to the book of Steven Bavaria that you display in the background.
That is the simple way to think of it. Actually both have suffered slippage due to options. Also understanding where the SP500 is compared to the Nasdaq is important to understanding how QDTE and XDTE works. Understand the GAP Up is important as both of these funds will eliminate NAV erosion due to premarket and aftermarket action. Very similar to CLOs and Steven Bavaria. He understood CLO market due to his years in banking. Did you catch the interview the other day with Steven. He doesn't use the high yield ETFs as his knowledge about the calls is lacking. Not that he can't learn it but his experience is elsewhere. I have also suffered some NAV erosion on CLOs so its there, but one must understand why. So one must understand the product to answer the why. These are actually CLOs that Steven currently holds.
Awesome information! Just subscribed due to this video. Personally, I want to be able to bail out on any investment without taking a significant principal loss (NAV is secondary to liquidity in my book). Thanks
Your data is 100% correct I know this is not common knowledge but some of us already know this…when the market opens most of the trades are already done…it’s what you do with that information that counts… nav erosion is something different and it’s measured over time the compound effects will smooth out the nav erosion over time assuming the market doesn’t crash if that happens all bets are off …that’s the reason we need more time and more data for example if everything goes to plan I will add Jepy to my portfolio…hope that helps…thanks
I will be less worried about the NAV now that I know that it will recover. There is still some erosion of capital going on but not enough that a good few green days wouldn't cover. Let me make my 8% and be happy. :)
Brad, I think you’re absolutely totally wrong on this my guy!!! Just kidding!!! 😂 this one got a first like from me. NVDY and QDTE are my only two funds and I plan to keep it that way. Thanks dude
Sir you have blown my mind with this. This is exactly why buy and hold with quality stocks and ETFS work. This is also why most daytraders lose money. Now I understand. Keep producing these enlightening videos. Thank you.
I’d like to know what the maximum withdrawal can be for avoiding NAV erosion is? In other words, what is the lowest percentage of reinvestment possible for a sustainable NAV? Or what is the closest number that we can calculate?
You can take between 10 to 15% of you original investment on a yearly base. It changes every month or so the exact amount changes. So a $50K investment can yield you $6K to $7.5K per year and keep you NAV.
The strategy is great compared to other ODTE strategies. As long as the markets keep being the market we should see growth. There is a new one that came out that I need to start watching.
Outstanding video. I get so frustrated with "investors" and youtuber's who put so much importance on the weekly pay aspect of these funds. The real power of these funds is the uncapped overnight exposure. These are great to couple with SPYT or QQQT maybe a little SPYI/QQQI for a mix of strategies combined with some hedging. Powerful stuff when they need to figure into the mix of replacing a paycheck in retirement. Keep up the good work.
NightShares whose advisor was AlphaTrAI Funds did have overnight ETFs NSPY NIWM and NSPL they were liquidated in July August 2023 due to underperformance. The reason given was difficulty in attracting assets.
@@Income_Architect I've been following you since the beginning and I'm starting to build a portfolio focused on dividends to cover my expenses and live off it just like you. I'm looking forward to learning more about the ETFs you apply and perhaps putting together a balanced portfolio to earn dividends and reapply them according to your teachings!
@@Income_Architect so, excuse my pea brain here...are you saying it can be overcome? Like reinvesting a portion of dividends back into the etf to compensate?
I understood that the 0DTE funds were opened at market open and closed before end of day, hence the name. Is there something like timezones you have mentioned which extends the market for those securities?
Not all 0DTE are done that way. Some are sold at close of market the day before. There is aftermarket and pre market as an institutional buyer. There are future markets that almost trade 24/5. I try to stay with one time zone in this case they listed the data in EST. But Europe doesn’t trade in EST they are 6 hours ahead of the EST. A quote from Gordon Gekko “Money never sleeps. This is your wake up call”. From the movie Wall Street.
Thanks for the informative video. When you mention reinvesting a % back into the ETF, how exactly are you doing that? Can you set the drip to only drip a certain % or are you executing a buy order every time you get a distribution? If you need to manually buy, do you pay transaction fees each time?
I have CEF and they drip at NAV automatically at 100% then take what I need. I have these set as manual. I do not pay fees for transactions. It makes me manage things. I sometimes hate it but knowing exactly what has came in and what has not came is important at this time of my life. For years, I set it and looked at it once every 6 months. Now I have the market on 4 to 6 hours a day.
TSPY I just started tracking them yesterday. A viewer made a comment so its not like I know all these darn funds as this one is less then a month old. I saw their calls yesterday and they actually closed their call and did not wait to expire. They also own the Index with SPY and don't use PMCC. I reached out to them yesterday late. I will have an update video today and will be dong some value add in this weeks update with some value I saw last night on another channel. I need to look more into ISPY and IQQQ as I am unsure if they hold it over night or not. I will be looking into them more. ISPY and IQQQ now they do really good if you want to talk about NAV. There are two issues I have with them. 1) their payout rate is to low for me. I might need to do a video about them as it might be right for others. 2) They use swaps. I was going to say I can't see what they are doing but actually they tell me just not in the same format as others.
One other thing I don't see other channels talk about on the weekly's, I think weekly pay helps and not hurts NAV decay... because the active yield hunters don't really have enough time to abandon ship after ex-date, so they just stick around each week. I predict a lot of funds in the next year will pay weekly and now thanks to the new info I have from Brad here, I think they will also let everything stew overnight on the daily strategies in the coming years..
Weekly v Monthly distributions - if you run some Math you will see that there is not much difference! if you compare QDTE v QQQ since inception (3/7) WITH AND WITHOUT DRIP it's almost similar result! It's not the weekly pays (even though these are nice of course) that give slight edge for these funds.
@@Income_Architect third party risks also apply to JEPI and JEPQ, though their institutional interest is unmatched within the Covered Call ETF universe.
@Alphahydro You are spot on that is why I don't hold JEPI or JEPQ. I think ISPY tracks the index well, we just don't know when they are doing what and that bothers me.
By your comments on other videos I am assuming you missed that these funds get the gap up. The whole point of the video was gap up and what the scholars say about gap up.
Thanks for sharing your research. The strategy is basically poor man’s covered call. They are long calls that are deep ITM 6 and 12 m out. These will always have overnight exposure. They are writing calls everyday at 9.45 am and let it expire at the end of the day. I don’t understand why this is unique. Anybody can do this.
Regarding your 8 percent living expenses, consider the leveraged municipal bond funds of Nuveen and Invesco, which are in the the 7 percent range with tax implications over 8 percent. Have experienced capital expansion with these funds and Fed upcoming decisions could sweeten the pie😜
I don't play with bonds due to what I saw with the pandemic. A long time ago they were not correlated. There was a clear correlation. Now it is a save play as the fed cuts should help.
If you are asking your not looking at the market. I guess I need to take spy and divided it XDTE for some people. This is something very easy to do in trandingview. It also has to due with VIX or the lack of volatility. If you don't understand the funds then please go invest in something you do understand. Warren Buffet didn't trade in anything he did not understand and he did very well.
@learningtobeprepared4866 I actually been thinking about this. When I did a spy/xdte I see that maybe we are not tracking the underlying asset as well with the PMCC. This will get closer and closer as we come to expiration date. it actually ranged on me by over 1% both directions. I might have to ask my contact how close are we to tracking with the PMCC at this time. As they are writing the far out this may have a little lag.
Hey Brad, good stuff! Would like your opinion please, with regard to high yielding dividend etfs & expecting that price drops on ex-dividend date... In general, Is it better to wait & buy on ex div date or buy anytime & capture the current dividend even though would experience the price drop associated?
All my Yieldmax NAVs have crashed since purchase and I'm in the negative, but still hoping...should we expect the nav to continually crash to 0 or will it bottom out eventually?
It's not just corporate earnings coming before or after the trading day, BUT economic data and it seems like something is released every couple or few days that could move the market. I would really like to see economic data released in a more consolidated way and not when people are subject to the massive gaps up or down it can create. "It's after hours! Your stop losses have no power here!" - the FED and the BLS
Hello All, been thinking about something lately..... Would it be better from a Tax and maybe even an overall portfolio point of view to drip ALL dividends All the time? then each month sell exactly what you need to use on expenses (FIRE People). I' m thinking that would have you reinvest more often (especially with the weekly payers) and create a small tax loss to offset the income gains on the dividends themselves. I would pick the lots with the biggest loss of course, so this way your DCA in the right direction and also recording a loss more often each year on NAV decay. Anyone try this?
This news is HUGE with a big capital H… wow!!! Will have a look at your links. Just HUGE !! Note that a new fund TSPY will all so write ODTE on the morning
I will have to look more into them. I just watched close the trade today at 2:45 and not wait for market close. Thanks for adding just another fund to my list. I like that the do own SPY and not a PMCC. Something to watch over time. I will need to compare their calls to QDTE.
@SummitMan165 I reached out to them to see if they wanted to come on the channel. I like that hold SPY and their call today was OTM more then Roundhill.
Do you accept NAv erosion could make holding such ETF a loss making proposition??? for example XDTE on 16th July if bought @53.45 , on 5th Aug price is @49 so Loss of 4.45 and in between Div paid = 0.201+0.241+0.351 -0.793 So how on earth is this good?
You bought SPY for 564 now at 548 how is that any good. Bad NAV erosion on the SP500. Do you hear what you are saying? Your playing the market hope your good at it. What happens to XDTE when SPY hits 564 again? Please become an income investor not a growth or speculative. Or stay growth or speculative but with funds that are way more suitable. Speculative should be using TQQQ and not these types of funds.
Most of earnings of the largest index weighted companies are released after the close and most of the economic reports are released at 8:30am ET. Both the earnings reports and government reports are rigged to show better than expected results, so the markets rally huge.
And who captured the upside? Great points. If you sell the day before you would not be able to guess the upside probability. Now there is a fund with money madness and they do a good job but only pay 7%.
On another note ... GPIX and GPIQ... while they don't outperform the index, but they do use the gap and advertise it .. they both perform well GPIQ outperforms JEPQ
I picked up GPIX and GPIQ as during my S&P500 testing it was clear capital appreciation was the best on both of these funds. Why is that important to me? At their rate of gain over others when a 5 to 10 or even 20% correction occurs they will have appreciated enough to still be above my cost base. Where some of the other funds with a 20% drop will be below. QDTE and XDTE are perfect examples of funds that would be below my cost bases if a 20% drop happens.
I thought in your recent "X,QDTE Urgent update video", you concurred with Average Joe's calculations that QDTE requires 65% reinvestment of distributions to maintain NAV erosion. Are you now saying there is no erosion in Roundhill funds? I am confused!
I also went back to see how far the market was off afterwards. Something Average Joe and myself failed to take into consideration on QQQ. As QQQ has not recovered or SPY is still down from JULY. What I am saying is reach indicates that these funds will recover with GAP up but I continue to get NAV erosion questions even now. Is it NAV erosion or market being down? Is it the PMCC not tracking the market? Or is it NAV erosion. I present the data as I get it. I present the most current information that I have available you now need to do your research to see what you want to do with it. If I come across any more data I will share it. I am not going to hide data or information that I come across from people.
@@Income_Architect Thanks Brad. I am not implying you are inconsistent or trying to hide data. I appreciate your efforts and your content. I am only making sure I understood your data/messaging correctly.
@user-fp3nt5xm3u No issue at all. Got you thanks for watching. As I find more information I will report it. My sheet still says you need 65% back in but it might clear up naturally with the price of QQQ coming up. I truly believe there are some other underlying issues with these funds such as PMCC but those issues get resolved over time due to the nature of the PMCC. I don't want to get to fancy with wording as I will lose people in all the junk that comes along with it. I will be reporting on other funds that people may or may not want to consider depending on their goals.
If I had access to after market hours.... If be retired by now. That's why these two, if managed with integrity, will help many retire earlier and focus on what they choose to.
Roundhill should pay you for adding validity to their approach and their competitive advantage given their ability retort leverage data from pre and after market trading.
Hi Brad.......I really enjoy your work and your research BUT let me be the Devil's advocate just for one day. If these people (ROUNDHILL) are aware of this half HOLY GRAIL......of these findings, and if they act upon them.......why would they be trading/working for us? Would it be logical to keep such a secret to themselves and trade for themselves?.......only FOOD FOR THOUGHT, nothing else
1) they are not the only ones trading it. I will be reviewing a different fund that actually holds SPY and not a PMCC. I want to see their first distribution. 2) the get paid their fees. 3) they have a mandate to grow their company. AUM But I like your thought process. What’s in it for them.
Hi maybe is interesting what you say, but you are so hard to follow and your explanations take too long. Sorry, I invested in XDTE and QDTE. I just want to see how they behave in a bear market.
If you miss understand gap up then you will have a hard time understanding how they will behave in bear market. As in any bear market the price will go down.
I hope this breaks it down for you.
www.nasdaq.com/articles/like-night-and-day#:~:text=Day%20volumes%20dominate%2C%20but%20night,trading%20happening%20during%20the%20day.
www.ft.com/content/1cc17824-3077-4e39-9a99-cbccc83a2251
papers.ssrn.com/sol3/papers.cfm?abstract_id=3596245
Thank you
Question: if the overnight returns are superior over time...why bother with the covered calls....why not just create an etf that invests daily in overnight returns? Is there such and ETF or fund?
@@tderkitttrading costs
There was but they stopped. It appears they didn't have a good marketing team.
@@shrdinc that doesn't make sense? as the fund is already incurring those trading costs. i am asking why not just drop the 0DTE aspect of the strategy, please explain thanks. TD
Probably one ,if not the most, underrated financial channel on uTube.
Recently it has been my favorite.
As I am one month old and took down my first 8 videos. Its only a matter of time.
I agree. Always will give me something to think about and come away with useful information.
Brad, I knew you were brilliant even without the letters. You are an absolute blessing for the investing community. I immensely appreciate all your insight.
This 100%
You're the best! I hated to throw out the letters but some people have no clue. I really would like to have lunch with the gardener as I bet I could learn a thing or two from him.
Brad, I can't say enough positive about this video! All my years of stock market knowledge, options, ect... I have never thought nor heard anybody bring this up before. I had no idea most of the gains were made after-hours! A lot of the market moves now make more sense! Keep up the good work!
Glad it was helpful! I left links to all everything in the pinned comment and in the description for reference. I know it but not to the extent of what the research shows.
Great video Brad. This really drives the point home. I really appreciate you sharing this wealth of information with us.
Glad you enjoyed it! Anytime I read something that is important enough I will let everyone know.
Excellent research further strengthens my faith in these 2 amazing funds. Thanks for the superb research work Brad 👍
Glad you enjoyed it!
Continuing to find such incredible value in your videos. Thanks so much!
Glad you like them! that was one of the better information videos.
Great video!
Eye opener for many, I'm sure.
Thank you for putting it out
I hope this explains why we can count on these funds and less focus on the NAV
this is amazing information. Thank you. Solidifies my confidence in Roundhill
Glad it was helpful! It makes you think.
Thank you for all the thought and time you put into your videos. It is very helpful to hear what you have to share.
You are so welcome!
Thanks for the eye opening video Brad. Been enjoying your videos over the last few weeks. Great food for thought. Cheers 🥂
Glad you like them!
Nobody else on this platform have talked about this before. This is some seriously good stuff. Hamburger you da man.🍔🍔🍔
Very one else is looking left and I looked at what someone posted on LinkedIn and connected the dots.
This is actually fascinating to learn. Thanks for putting this out.
Thanks for watching.
I don’t know about everyone else, but knowing this conceptually makes me feel much more confident about Roundhill’s strategy.
Someone told me about another fund today. I will start tracking them but I have have a feeling that they will have a lower payment. I have the same confidence now also.
@@Income_Architect RDTE? They will have similar payment like QDTE. Similar volatility on both indexes.
@@nikolaygannev4294 Yes I would expect their calls to be about the same amount OTM Only time will tell
@@Income_Architect RUT and NDX have similar volatility and sometimes RUT even more, so I expect premiums from RDTE to be even better than QDTE. But of course RDTE will be a bit more volatile...
Brad I watch all your videos, I even got my uncle watching your videos now too. PLEASE keep these wonderful videos coming
Thanks. I will do my best.
Thank you for sharing, very interesting. Makes a lot of common sense to try and not cap the upside. I appreciate the videos you take time to make, keep it up.
Thanks for watching.
Thank you for sharing your research and findings. No one else brings up these gems, let alone got the passion to break it down for us so understandable. Seems like we need more of these 0DTE strategy ETFs available for income focused retirees for passive investing in a safer way. Thank you
I have another one someone pointed me to. I already reached out to them. They actually hold spy and not a PMCC. I looked at their strikes yesterday. There are some others but they use swaps. I really don’t like that transparency or lack of transparency. I actually want to see it so I can understand.
Amazing work on this one Brad! One of my favorite videos yet! Excellent source material and explanation of gap up
Awesome, thank you!
Thanks for your considered insights, Brad. Very enlightening. Wish you luck with your channel - you deserve it fella. Happy investing!
Much appreciated!
Quite the eye opener Brad, thanks for your work and sharing the info.
Glad it was helpful!
Another great video!! I liked the overnight exposure with the Roundhill funds. That was very appealing. You video did a great job of outlining the benefits of the overnight exposure and the details behind it. Thank you. Brad, putting together a sample income focused portfolio may make great topic for your videos. I think actual security selection can be very person (e.g. risk tolerance), but to me it is like a puzzle and you need the right pieces. XDTE, QDTE, SVOL, OXLC, PAXS, and XFLT (or BGT) are a few of my favorites.
I like the Income Factory book in the background. It was a great book. I am trying to implement his strategies.
Great idea. That will take some time. I see value in that.
@@Income_Architect Thank you for considering the point. Perhaps a small portfolio (much you have already covered) would do the trick, 5-7 holdings. PortfolioVisualizer may produce much of the content to cover. I feel that pulling the different funds together might be helpful to others. It can be tricky, in my humble opinion, to piece the different pieces together.
@Hedger7541 Also funds that appear to have no NAV erosion also for those not willing to deal with their Capital erosion.
@@Income_Architect Agreed. That is a great point.
Love Roundhill etfs! Great channel, subscribed!
Welcome aboard!
Wowww. This information is absolutely phenomenal!! I had never heard this explanation before. Thank you for sharing such valuable insights and information. You are a treasure sir. Blessings and favor to you.
Glad it was helpful! Only sharing what I find out there that might help people.
Thanks for the heads up, Brad. Good work as always.
Any time!
Wow! That overnight performance vs intraday graph is amazing. I had no idea. I knew it moved overnight because of news, overseas trading, and aftermarket domestic sessions, but I would have thought most of the movement happened during domestic (US) intraday. This definitely validates leaving the options off overnight for that capital appreciation.
Boom! I didn't think it was that much myself. I thought I had the data wrong at first.
@@Income_Architect
So are you saying Roundhill found the secret sauce with their zero dte funds?
@@faitaccompli5878 They are not the only ones. I think Roundhill is not managing their calls and there are other ETFs that are doing better by managing the calls. 0DTE has 4.5 times more premiums then longer dated calls at the same delta.
yes very informative thanks for your effort...also looking forward to more on the how much to reinvest and how much available to spend percentages
8% scraping off the top is easy. 10% scraping off the top easy. The last look things start to look a little hmmm near the 15% of the original investment on a yearly bases.
Thanks for sharing this information. Very useful to know, and a reason for the excellent performance of these funds. I don't get the connection between gains during after market hours and Nav erosion. For me me Nav erosion is very simple. I buy at 40$ today. If a year from now, and without having reinvested any dividends back into the fund, I have to sell for less than 40, there is Nav erosion. For example QDTE has suffered from NAV erosion, no questions about that on my mind. Conversely, XDTE has not. It's not that complicated. Call it capital depreciation or whatever fancy name one can think.
In any event keep the good work. 😎
Looking forward to hear your views on CLOs, of which I own several. I got into them due to the book of Steven Bavaria that you display in the background.
That is the simple way to think of it. Actually both have suffered slippage due to options. Also understanding where the SP500 is compared to the Nasdaq is important to understanding how QDTE and XDTE works. Understand the GAP Up is important as both of these funds will eliminate NAV erosion due to premarket and aftermarket action. Very similar to CLOs and Steven Bavaria. He understood CLO market due to his years in banking. Did you catch the interview the other day with Steven. He doesn't use the high yield ETFs as his knowledge about the calls is lacking. Not that he can't learn it but his experience is elsewhere. I have also suffered some NAV erosion on CLOs so its there, but one must understand why. So one must understand the product to answer the why. These are actually CLOs that Steven currently holds.
Fantastic Video Brad brilliant insights so glad found your channel.
Glad you enjoyed it
Thanks for the video. I picked up some RDTE just play.
I picked up 10 shares late this morning. Doing a video got in the way. I will see if there is not a better entry point later this week.
@@Income_Architect I did the same, just dipping my toes in and see how it goes.
Thank you for your informative channel ❤
Welcome!
Thank you very much Brad for educating us. Subscriber for life.
You are very welcome. Pressure is on to make good content. Thanks for watching.
Awesome information! Just subscribed due to this video. Personally, I want to be able to bail out on any investment without taking a significant principal loss (NAV is secondary to liquidity in my book). Thanks
Welcome aboard!
I didn't know this -- VERY good information. Thank you!
Glad it was helpful!
Thank you for the information and links, good stuff!
You bet! You can check it all out. I like to open as much as I can.
Grear info. I also have seen this happening
Yep. 👍. It’s great information.
Your data is 100% correct I know this is not common knowledge but some of us already know this…when the market opens most of the trades are already done…it’s what you do with that information that counts… nav erosion is something different and it’s measured over time the compound effects will smooth out the nav erosion over time assuming the market doesn’t crash if that happens all bets are off …that’s the reason we need more time and more data for example if everything goes to plan I will add Jepy to my portfolio…hope that helps…thanks
I will be less worried about the NAV now that I know that it will recover. There is still some erosion of capital going on but not enough that a good few green days wouldn't cover. Let me make my 8% and be happy. :)
Fantastic information.
Glad it was helpful!
Brad, I think you’re absolutely totally wrong on this my guy!!!
Just kidding!!! 😂 this one got a first like from me. NVDY and QDTE are my only two funds and I plan to keep it that way. Thanks dude
Boom! Wow you keep those likes close to chest. I have both funds. Thanks for watching.
Great video, thanks for sharing.
Thanks for watching! I do watch your content for inspiration on a subject. So keep it up.
Just sold me on more DTE from Roundhill - great info!
Just found another ODTE that sells on the day off. I got my eye on them.
@@Income_Architect I'll keep an eye on your channel, appreciate the data 😀
Sir you have blown my mind with this. This is exactly why buy and hold with quality stocks and ETFS work. This is also why most daytraders lose money. Now I understand. Keep producing these enlightening videos. Thank you.
Well said. More to come as I get to more testing. Thanks for watching.
Great video! Thanks for explaining this!
My pleasure! I hope it helps.
You are a diamond on you tube thank you for yr hard work for absolutely zero hamburgers god bless you
Wow, thank you
I’d like to know what the maximum withdrawal can be for avoiding NAV erosion is? In other words,
what is the lowest percentage of reinvestment possible for a sustainable NAV?
Or what is the closest number that we can calculate?
You can take between 10 to 15% of you original investment on a yearly base. It changes every month or so the exact amount changes. So a $50K investment can yield you $6K to $7.5K per year and keep you NAV.
@@Income_Architect thanks for explaining that Brad!
Thankyou for your in depth explanation Brad
Glad it was helpful!
Brad love the shirt. But the Videos....... ELITE. What a great video .
Thanks. I only had to record it twice this time.
My data was saying the same thing. I was trying to find out why, and I came across you. Well, we are friends now. you have no choice :)
Always like to have a new friend.
Great content. Thank you!
Glad you liked it!
Great video, also weekly DRIP does better cost average overtime than monthly buys, this can better time the market.
Good call!
Interesting info Brad. Thanks! Now we need a fund to sell options on the overnight too!
There was one at one time. No longer. What you need is a RUclipsr to be able to explain how they work and their advantages.
Thanks
Something I had actually noticed but the why kinda eluded me, question is how does this effect strategy?
The strategy is great compared to other ODTE strategies. As long as the markets keep being the market we should see growth. There is a new one that came out that I need to start watching.
Outstanding video. I get so frustrated with "investors" and youtuber's who put so much importance on the weekly pay aspect of these funds. The real power of these funds is the uncapped overnight exposure. These are great to couple with SPYT or QQQT maybe a little SPYI/QQQI for a mix of strategies combined with some hedging. Powerful stuff when they need to figure into the mix of replacing a paycheck in retirement. Keep up the good work.
@TonyHunt-dn6bw Wow another that gets it. Thanks for watching. I might add in some others to the mix but you truly get it.
As soon as I heard about the Roundhill strategy, i sold almost everything and piled into QDTE. Agree completely with this video
I actually like XDTE as much or more. But the strategy is hard to beat. Thanks for watching.
Great info Brad! Thanks for sharing
Glad you enjoyed it.
Awesome video!
Thanks!
Thank you for sharing your insight.
hope it was helpful.
NightShares whose advisor was AlphaTrAI Funds did have overnight ETFs NSPY NIWM and NSPL they were liquidated in July August 2023 due to underperformance. The reason given was difficulty in attracting assets.
I bet they didn't market it well. but the theory is correct.
Thanks Brad! Brasil over here.
Your welcome
@@Income_Architect I've been following you since the beginning and I'm starting to build a portfolio focused on dividends to cover my expenses and live off it just like you. I'm looking forward to learning more about the ETFs you apply and perhaps putting together a balanced portfolio to earn dividends and reapply them according to your teachings!
I have a video showing all my holdings.
So uh, laments cliffnotes: are you saying qdte nav erosion isnt a big deal because QDTE has access to after market price action?
Any NAV erosion is a big deal, but understanding where it’s coming from and can it be overcome is invaluable.
@@Income_Architect so, excuse my pea brain here...are you saying it can be overcome? Like reinvesting a portion of dividends back into the etf to compensate?
@@truant2827 yes and with gap up it can be overcome. Much easier with a slight percentage going back into the fund.
I understood that the 0DTE funds were opened at market open and closed before end of day, hence the name. Is there something like timezones you have mentioned which extends the market for those securities?
Not all 0DTE are done that way. Some are sold at close of market the day before. There is aftermarket and pre market as an institutional buyer. There are future markets that almost trade 24/5. I try to stay with one time zone in this case they listed the data in EST. But Europe doesn’t trade in EST they are 6 hours ahead of the EST. A quote from Gordon Gekko “Money never sleeps. This is your wake up call”. From the movie Wall Street.
great stuff!
Glad you think so!
Amazing info
Glad it was helpful!
Thanks for the informative video. When you mention reinvesting a % back into the ETF, how exactly are you doing that? Can you set the drip to only drip a certain % or are you executing a buy order every time you get a distribution? If you need to manually buy, do you pay transaction fees each time?
I have CEF and they drip at NAV automatically at 100% then take what I need. I have these set as manual. I do not pay fees for transactions. It makes me manage things. I sometimes hate it but knowing exactly what has came in and what has not came is important at this time of my life. For years, I set it and looked at it once every 6 months. Now I have the market on 4 to 6 hours a day.
@@Income_Architect I see thanks.
Brad great info do you know of any funds beside QDTE RDTE AND XDTE that would benefit from this
TSPY I just started tracking them yesterday. A viewer made a comment so its not like I know all these darn funds as this one is less then a month old. I saw their calls yesterday and they actually closed their call and did not wait to expire. They also own the Index with SPY and don't use PMCC. I reached out to them yesterday late. I will have an update video today and will be dong some value add in this weeks update with some value I saw last night on another channel.
I need to look more into ISPY and IQQQ as I am unsure if they hold it over night or not. I will be looking into them more.
ISPY and IQQQ now they do really good if you want to talk about NAV. There are two issues I have with them. 1) their payout rate is to low for me. I might need to do a video about them as it might be right for others.
2) They use swaps. I was going to say I can't see what they are doing but actually they tell me just not in the same format as others.
Great video. Swinging $XDTE to buy $AMZY for now.
All kinds of ways to get a leg up on the market.
One other thing I don't see other channels talk about on the weekly's, I think weekly pay helps and not hurts NAV decay... because the active yield hunters don't really have enough time to abandon ship after ex-date, so they just stick around each week. I predict a lot of funds in the next year will pay weekly and now thanks to the new info I have from Brad here, I think they will also let everything stew overnight on the daily strategies in the coming years..
Hope this explains why I am not worried in the long run with these funds.
Damn that is an excellent conclusion. You are right, being paid weekly. I don’t even give it a thought as to selling any shares.
@@mbillinger1969 And I have ZERO letters after my name LOL Teasing Brad!
Weekly v Monthly distributions - if you run some Math you will see that there is not much difference! if you compare QDTE v QQQ since inception (3/7) WITH AND WITHOUT DRIP it's almost similar result! It's not the weekly pays (even though these are nice of course) that give slight edge for these funds.
@@nikolaygannev4294 That video is coming. You are spot on.
Brad. Many thanks brother. Looking forward to reading the articles. I'd love to chat with you at some point. How do we share emails privately?
My email is under the profile.
Also ISPY and IQQQ uses a 0dte strategy, would they fall into the same bucket as Roundhill?
I couldn't see why not. I just bought ISPY last week.
ISPY and IQQQ use swaps good luck with that one. Third party risk keeps coming to mind. I can see their calls so I can’t tell you.
@@Income_Architect third party risks also apply to JEPI and JEPQ, though their institutional interest is unmatched within the Covered Call ETF universe.
@Alphahydro You are spot on that is why I don't hold JEPI or JEPQ. I think ISPY tracks the index well, we just don't know when they are doing what and that bothers me.
Watched the video, so what is the conclusion. I didn't see the scholars address QDTE and XDTE.
By your comments on other videos I am assuming you missed that these funds get the gap up. The whole point of the video was gap up and what the scholars say about gap up.
Thanks for sharing your research. The strategy is basically poor man’s covered call. They are long calls that are deep ITM 6 and 12 m out. These will always have overnight exposure. They are writing calls everyday at 9.45 am and let it expire at the end of the day. I don’t understand why this is unique. Anybody can do this.
Ok great if you say so. Thanks. I guess if it was so common why isn’t everyone doing it? I have found one other fund using 0DTE that trades same day.
Yes true but some people are downplaying the risk
@@Income_Architect It is not because this guy says so it is known strategy , the ETF is built on it
Great video.
Glad you enjoyed it
Regarding your 8 percent living expenses, consider the leveraged municipal bond funds of Nuveen and Invesco, which are in the the 7 percent range with tax implications over 8 percent. Have experienced capital expansion with these funds and Fed upcoming decisions could sweeten the pie😜
I don't play with bonds due to what I saw with the pandemic. A long time ago they were not correlated. There was a clear correlation. Now it is a save play as the fed cuts should help.
Big Bad Brad! Keep it coming!
Something to share everyday. I do take Saturday night and Sunday morning off.
@@Income_Architect balance is a key to a happy life. Do your thing at the pace that makes sense for you and the Mrs.
Thanks B
Any time
I get that the market happens mostly after hours; however, I didn’t understand how that explains the NAV issue. Could you help? - Jeremy
If you are asking your not looking at the market. I guess I need to take spy and divided it XDTE for some people. This is something very easy to do in trandingview. It also has to due with VIX or the lack of volatility. If you don't understand the funds then please go invest in something you do understand. Warren Buffet didn't trade in anything he did not understand and he did very well.
@learningtobeprepared4866 I actually been thinking about this. When I did a spy/xdte I see that maybe we are not tracking the underlying asset as well with the PMCC. This will get closer and closer as we come to expiration date. it actually ranged on me by over 1% both directions. I might have to ask my contact how close are we to tracking with the PMCC at this time. As they are writing the far out this may have a little lag.
Hey Brad, good stuff! Would like your opinion please, with regard to high yielding dividend etfs & expecting that price drops on ex-dividend date... In general, Is it better to wait & buy on ex div date or buy anytime & capture the current dividend even though would experience the price drop associated?
I buy on the ex div date. I hold some cash to do this. Just lowing my cost base. It works most of the time better this way but not always. IMO
All my Yieldmax NAVs have crashed since purchase and I'm in the negative, but still hoping...should we expect the nav to continually crash to 0 or will it bottom out eventually?
Are you reinvesting? Or talking the cash and running.
Could you share the actual nos please NAv erosion + Div gained in Black and white
@jiti5034 my tool does just that. Yes I will run it for everyone.
@@Income_Architect Still not clear if you support these Etfs or you accept the Risks?
It's not just corporate earnings coming before or after the trading day, BUT economic data and it seems like something is released every couple or few days that could move the market. I would really like to see economic data released in a more consolidated way and not when people are subject to the massive gaps up or down it can create. "It's after hours! Your stop losses have no power here!" - the FED and the BLS
Thanks for the e-mail earlier today.
best of both worlds, buy a little spyt for downside gap coverage and xdte for upside gap coverage. see you on the beach!
I might be moving away from SPYT. I might have one that is even better. But I am waiting to see more data.
Can’t wait to hear about that one…
Hello All, been thinking about something lately..... Would it be better from a Tax and maybe even an overall portfolio point of view to drip ALL dividends All the time? then each month sell exactly what you need to use on expenses (FIRE People). I' m thinking that would have you reinvest more often (especially with the weekly payers) and create a small tax loss to offset the income gains on the dividends themselves. I would pick the lots with the biggest loss of course, so this way your DCA in the right direction and also recording a loss more often each year on NAV decay. Anyone try this?
That sounds like a lot of work. But yep tax loss harvesting is important. I have not so maybe some have.
This news is HUGE with a big capital H… wow!!! Will have a look at your links. Just HUGE !!
Note that a new fund TSPY will all so write ODTE on the morning
I will have to look more into them. I just watched close the trade today at 2:45 and not wait for market close. Thanks for adding just another fund to my list. I like that the do own SPY and not a PMCC. Something to watch over time. I will need to compare their calls to QDTE.
@SummitMan165 I reached out to them to see if they wanted to come on the channel. I like that hold SPY and their call today was OTM more then Roundhill.
@@Income_Architect imagine owning the SPY total return plus some income in bonus !! 🤩🤩🤩
Yes but Roundhill poor man covered call should let them sell more calls.
Do you accept NAv erosion could make holding such ETF a loss making proposition??? for example XDTE on 16th July if bought @53.45 , on 5th Aug price is @49 so Loss of 4.45 and in between Div paid = 0.201+0.241+0.351 -0.793 So how on earth is this good?
You bought SPY for 564 now at 548 how is that any good. Bad NAV erosion on the SP500. Do you hear what you are saying? Your playing the market hope your good at it. What happens to XDTE when SPY hits 564 again? Please become an income investor not a growth or speculative. Or stay growth or speculative but with funds that are way more suitable. Speculative should be using TQQQ and not these types of funds.
Most of earnings of the largest index weighted companies are released after the close and most of the economic reports are released at 8:30am ET. Both the earnings reports and government reports are rigged to show better than expected results, so the markets rally huge.
And who captured the upside? Great points. If you sell the day before you would not be able to guess the upside probability. Now there is a fund with money madness and they do a good job but only pay 7%.
Another awesome video Brad. If you're ever around Atlanta we'll sit down for a hamburger 🍔
Deal!
Do you show your complete high yield portfolio?
LOL I already did that video for September. ruclips.net/video/vqMWuxWjcWE/видео.html
@@Income_Architect thank you
Yep. I will do it every month.
@@Income_Architect awesome … probably gonna make spyi my core holding
On another note ... GPIX and GPIQ... while they don't outperform the index, but they do use the gap and advertise it .. they both perform well GPIQ outperforms JEPQ
I picked up GPIX and GPIQ as during my S&P500 testing it was clear capital appreciation was the best on both of these funds. Why is that important to me? At their rate of gain over others when a 5 to 10 or even 20% correction occurs they will have appreciated enough to still be above my cost base. Where some of the other funds with a 20% drop will be below. QDTE and XDTE are perfect examples of funds that would be below my cost bases if a 20% drop happens.
I thought in your recent "X,QDTE Urgent update video", you concurred with Average Joe's calculations that QDTE requires 65% reinvestment of distributions to maintain NAV erosion. Are you now saying there is no erosion in Roundhill funds? I am confused!
I also went back to see how far the market was off afterwards. Something Average Joe and myself failed to take into consideration on QQQ. As QQQ has not recovered or SPY is still down from JULY. What I am saying is reach indicates that these funds will recover with GAP up but I continue to get NAV erosion questions even now. Is it NAV erosion or market being down? Is it the PMCC not tracking the market? Or is it NAV erosion. I present the data as I get it. I present the most current information that I have available you now need to do your research to see what you want to do with it. If I come across any more data I will share it. I am not going to hide data or information that I come across from people.
@@Income_Architect Thanks Brad. I am not implying you are inconsistent or trying to hide data. I appreciate your efforts and your content. I am only making sure I understood your data/messaging correctly.
@user-fp3nt5xm3u No issue at all. Got you thanks for watching. As I find more information I will report it. My sheet still says you need 65% back in but it might clear up naturally with the price of QQQ coming up. I truly believe there are some other underlying issues with these funds such as PMCC but those issues get resolved over time due to the nature of the PMCC. I don't want to get to fancy with wording as I will lose people in all the junk that comes along with it. I will be reporting on other funds that people may or may not want to consider depending on their goals.
That's why we 24/7 trading?
only on some items. but your seeing the theory.
Before it was them. Now it is “we”.
If I had access to after market hours.... If be retired by now. That's why these two, if managed with integrity, will help many retire earlier and focus on what they choose to.
Like make RUclips videos and reply to comments. :) have a great day and thanks for watching.
You mentioned "Gap Up" several times.... what is that?
The difference between close of market and opening of the market.
Roundhill should pay you for adding validity to their approach and their competitive advantage given their ability retort leverage data from pre and after market trading.
Well at least they answer my e-mails on the same day. :)
@@Income_Architect ha! Please give me a link to your LinkedIn
That is dangerous. I do like to have some privacy.
@@Income_Architect interesting perspective given that it was you who revealed you were on LinkedIn. Not a big deal just a bit incongruent
I got you as I retired about a month ago. I still talk to my old friends and I never posted about starting a RUclips Channel to them.
I don't understand why we're not able to trade 24 hours a day now
Well, well welcome to my thinking. I can trade Bitcoin or Futures.
Them Trading In Japan Is What Got A Lot Of People In Trouble A Couple Of Weeks Ago.
lol yes if Warren Buffet had some money there. He did ok with it.
Hi Brad.......I really enjoy your work and your research BUT let me be the Devil's advocate just for one day. If these people (ROUNDHILL) are aware of this half HOLY GRAIL......of these findings, and if they act upon them.......why would they be trading/working for us? Would it be logical to keep such a secret to themselves and trade for themselves?.......only FOOD FOR THOUGHT, nothing else
1) they are not the only ones trading it. I will be reviewing a different fund that actually holds SPY and not a PMCC. I want to see their first distribution.
2) the get paid their fees.
3) they have a mandate to grow their company. AUM
But I like your thought process. What’s in it for them.
I lucky I live in new Zealand and we can trade pretty much 24 hours on my broker
Nice. I did 24 Prop trading at one time.
i passed on RDTE today at $41.70 now after hours its over $44
I grabbed 10 shares at 41.84 thinking I could get more at a discount.
@@Income_Architect maybe buy more on Thursday?
looking at the price today.
So my takeaway is I should live in Europe. 😂
Europe has issues also and you can trade Europe as a prop trader. Not as easy as one may think.
Hi maybe is interesting what you say, but you are so hard to follow and your explanations take too long. Sorry, I invested in XDTE and QDTE. I just want to see how they behave in a bear market.
If you miss understand gap up then you will have a hard time understanding how they will behave in bear market. As in any bear market the price will go down.
Can this guy be any more boring
Yes I can.