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$QYLD buys covered call strategies on the Nasdaq-100
What is a covered call/writing a call in simple terms?
Owning shares of the underlying security, selling someone the right to purchase those shares above a specific price (strike price) - seller receives a premium
(thread)
What is a covered call/writing a call in simple terms?
Owning shares of the underlying security, selling someone the right to purchase those shares above a specific price (strike price) - seller receives a premium
(thread)
1/
A covered call is a neutral to bearish position
The best scenario is the price of the stock goes up but not over the strike price - simultaneously keeping your shares of the underlying security AND receiving your premium.
Under all outcomes you will receive a premium!
A covered call is a neutral to bearish position
The best scenario is the price of the stock goes up but not over the strike price - simultaneously keeping your shares of the underlying security AND receiving your premium.
Under all outcomes you will receive a premium!
2/ $QYLD
If you noticed the term "underlying security" which includes stocks, ETFs, etc.
$QYLD owns companies in the Nasdaq-100 and turns around and write's calls on the index.
Dividends are paid out to shareholders on a MONTHLY basis
12-Month Trailing Yield: 11.43%
If you noticed the term "underlying security" which includes stocks, ETFs, etc.
$QYLD owns companies in the Nasdaq-100 and turns around and write's calls on the index.
Dividends are paid out to shareholders on a MONTHLY basis
12-Month Trailing Yield: 11.43%
3/ My thoughts
I own some of the top holdings of the Nasdaq-100, however I don't have enough capital to own 100 shares (required amount) of $NVDA let's say-$53.2k worth
This gives me a hands off way of doing these strategies w/ capturing insane dividends in an overheated market
I own some of the top holdings of the Nasdaq-100, however I don't have enough capital to own 100 shares (required amount) of $NVDA let's say-$53.2k worth
This gives me a hands off way of doing these strategies w/ capturing insane dividends in an overheated market
4/
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I cover things like this and my own deep dives on stocks in the easiest to understand format as possible :) https://rebelmarkets.substack.com/
