DIVO’s 5% Yield Is Impressive, But Its Tactical Covered Call Strategy Costs You 30% of Big Up Months
Retirees who want a monthly income without the wild ride of high-yield specialty funds often land on the Amplify CWP Enhanced Dividend Income ETF (NYSEARCA:DIVO). The pitch is straightforward: pair ...
Covered call ETFs monetize volatility to generate premium income, at the cost of tax drag and capped upside price ...
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Bonds used to be the answer for retirees who needed income. Then came the covered-call ETF that pays 4.75%.
The ETF sells covered calls on individual stocks, with discretion for strike selection, overwrite ratios, and expiry dates.
I've written here and elsewhere about what I call the “Dog Collar” strategy. That's just my “pet name” for a typical option collar strategy, where a stock or ETF is surrounded by a covered call option ...
The market rotation away from tech stocks has created opportunities for traditional high-yield covered call strategies.
While this approach works best for most people, there are two downsides: First, you can never outperform the index you're ...
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