Trade log star date March 1, 2024. Today I opened my first option trade in a long time. Yes, I own the covered call writing ETF’s QYLD and RYLD, but this was my first call option in two decades. Why did I do this? Simple, because “stonks” go up, at least in a strong bull market. There’s such a market euphoria right now that people are blindly throwing money at AMD, NVDA, and host of other shit related AI stocks that there are new all-time highs being made daily. ...
Since late 2020, I have been an investor in the covered call ETF, QYLD, and I remain long. This fund has been a cornerstone in my portfolio, primarily due to its impressive 12% dividend yield, aligning seamlessly with my goal of building a stable source of passive income. The best part of owning QYLD for all these years are the monthly payouts and the generous $2.05 per share as I move toward a $100,000 passive income stream. ...
My quest continues to earn $100,000 passive income in a year. Supporting my strategy is $QYLD, a monthly dividend producing ETF that uses a Covered Call strategy by owning and selling Nasdaq 100 stocks. It’s not one for the faint of heart, but it fits with my passive income strategy and I went long. There are two things that jump out at me risk wise. For my readers, I’ve written covered calls before, and they’re a great strategy to amp up your returns. The drawback is that you might get your shares ‘called away’ and then end up losing out on more growth. It’s extremely harsh for small investors - like me - that don’t have billion-dollar portfolios and own 1000’s of shares of $MSFT or $AAPL. Every 100 shares that get called away from me hurts me in the end, so I’ve stopped doing that strategy. It makes sense to do it in an ETF that holds billions of dollars in these tech giants. ...