JEPQ

j4c11

It is. It's emotional trading - you don't want to accept the loss. There's other ETFs that pay dividends, and a lot more - JEPQ for example. The fact is, picking a loser doesn't say anything about your ability to invest or make good choices. It doesn't make you stupid, it doesn't make you a bad investor. It's just how it goes - you win some, you lose some, it's normal. You observe, you correct, you move on.

CornerOne238

I agree, slow shifting into income generating assets is a good path forward. The thing is, most FA I met hate dividend stocks and will either recommend bonds (in this environment, no thank you) or some funds that generate ton of ordinary income (the FA I went to tried to sell me on JEPQ in taxable with a straight face). Last year another FA tried to get me into "alternatives" aka private credit / equity which soon after turned out to be just exit liquidity for private fund investors. I had to self educate myself a lot about dividend funds, cefs, mlps, and cc etfs. Ended up making a test portfolio which generates about 10% yield and no NAV erosion (at least so far), but it required a lot of spare time. My main concern right now same as OP is capital preservation, which is mostly in taxable index funds. Using protective puts for now but hoping to figure out a better way.

acexprt

Some risky but high. MAIN, JEPI and JEPQ. Safe but low SGOV. Do some research into this.

LearnFromOthers411

JEPQ- limit buy at $58.5 per share to catch at its low.

PowerTowerPro

Look at JEPI and JEPQ.

Starkfault

I’m down 4 months of JEPQ dividends today this is not sustainable omg

Sean_VasDeferens

"I didn’t really see another sector clearly absorbing all that money." I avoid AI plays and every single stock I wheel on has been going up. I'm sitting back eating my popcorn and waiting for JEPQ to hit 58.

Callsign_Freq

JEPQ would have paid $20k+ this month on this principal…

TrapLordBoss

JEPQ and passive income ?

EmbarrassedPart1256

Calls??? I’m going to be hoping for you after this announcement AH Friday. I hope my $JEPQ holds up relatively well or I’m going to regret not trimming at $62 🤣🥲

_Hog_Rider_

JEPQ

WorldlyWar2143

JEPQ has returned 17% annually since 2022 sleeeeping on that one

WorldlyWar2143

Kinda wanna full port JEPQ with 50k. Looks like Ill double my money in 5 years

Old_Evidence8598

i jus i jus let JEPQ make the calls for me 🤤🤡🥴 J.p. morgan so smart

Buylowsellhigh10

You are doing the right things.  Keep saving and putting as much as possible into the Roth accounts.  Take advantage of any retirement plans offered through your employers especially if they have a match.  Paying off your mortgage or aggressively paying it down in my opinion is individual case by case scenario.  If you have a traditional mortgage with a low rate locked in especially something under 4% I wouldn't be aggressively paying it down.  I would make my regular payments, maybe paying it between two payments during the month depending on if it reamortizes when payments are made (that may save some interest over the life of the loan without needed to make large additional principle payments).  But once that money is used on towards the mortgage if you need to access it again you are taking it through something like a HELOC or cashout refinance for example.  If the rate is low and locked in why not invest those funds towards retirement or in a brokerage account (as long as you have proper emergency reserves in place)? I also am not a big fan if the JEPQ or JEPI in a taxable/brokerage account because the distributions are highly tax inefficient.  Not sure if most people using JEPQ or JEPI are aware that the distributions coming off of those ETF strategies are taxable at your ordinary income rates and not qualified dividend or any other more favorable rates that typically are used for dividends, interest, etc.  So its both tax inefficient and could potentially raise your overall tax bracket if you are near the upper threshold of you current bracket.  The ETFs with similar option overlay strategies from Eaton Vance and I believe Innovator ETFs may be worth looking at.  I believe both groups have the options overlays being managed by Parametric (which Eaton Vance bought and then Eaton Vance was bought by Morgan Stanley which is besides the point).  But my understanding is that Parametric is doing something different in how they manage the option overlays so that the distributions are taxed at qualified dividend rates and not as ordinary income which after taxes may be more appealing 15% cap gains/qualified dividend rates versus potentially 25%+ ordinary income rates could be significant.

delamerica93

Interesting, yeah I've only invested in dividend stuff as a smaller portion of my accounts and ONLY in my Roth IRAs so I'm not getting double taxed. Should I just pull out entirely? I've got some JEPQ and SCHD but mostly just to have something safe in the accounts. And you're totally right about the bull market thing. I have zero idea if I'm actually good at investing or if I'm just winning because everyone is (I think it's mostly the latter + luck). I've made a lot of my gains from a few stocks, specifically $NBIS which I'm up like 750% on overall, TSM, and GOOGL. I've dabbled in some other stuff like GLD but my portfolio is super tech heavy for sure. Would actually seeing the whole thing listed out help?

morbidgames

There will always be ups and downs in the market. In the 80's inflation and 11% unemployment, then 90's we had the Gulf War, then 2001 the dot com bubble, 2007 the real estate recession, 2020 covid, now 2026 we have a war with Iran. Nothing ever really changes. You won't be eble to time the market, no one can. Also just because one market sector goes to shit doesn't mean they all do. At 20 you should invest your money in a ETF focused on high Growth, things like VGT/VOO, maybe even some industry specific ETFS like QTUM for quantum computing. You get 30+ years of watching the money go up and down but with compounding you're upward projectory can be meaningful. At 30-40 you may want to change things up, move from all growth potential to more steady so things like VTI and BBUS with a small allocation to VXUS (non US markets) as you want less risk, which also means less growth. At 50-60 you need to start thinking about consistent income and tax implecations instead of growth so you may start looking at things like JEPI/JEPQ, Bonds, Dividend focused ETFs like VYM/VIG. I don't know your Dad's age but what they do with their money needs to be different from what you do with your money.

ithinkitsahairball

If nothing else get into something like JEPI, JEPQ, SPYI, QQQI and start accumulating dividends while you wait.

General-Oil293

JEPQ

siskyouthrowaway

My biggest worry is that one day QQQI (or JEPI or JEPQ or SPYI) will suddenly say: that's it, we're out of shares. So, no more dividends for you! 😃

Bubbleman54

If you're over 50, do you want income from it? Do you wanna make sure to preserve capital? If you want income the CSPs and CCs are still a strategy to do that, but an easier route would be to put some in income focused ETFs. QQQI, SPYI, JEPI, JEPQ, SCHD are some of the popular ones. I am not a financial planner, so you'd want to consult one probably. Im just a guy a couple years away from retirement who has been looking into some of this stuff and running different scenarios/strategies through spreadsheets. There are tax implications on some of these things that I dont fully understand yet so talk to somebody that knows what they are talking about. Some of the returns on income ETFs are considered qualified dividends, some arent, some are considered return of capital. Etc. Way too much to get into here, but if anything Im saying is completely foreign to you they are things to go do some research. Or just get a financial planner. Which is probably the best advice

CD274

No it won't work if you park in JEPQ but will work if you park in your brokerages money market fund. Depending on brokerage

Main_Following_5709

Get out ASAP, suck up the capital gains taxes, and drop the rest into a couple ETF’s - one that is heavy growth like SCHD, one that is high income like JEPQ, and one that is aggressive growth like STRC, SATA, or a leveraged fund line TECL. It can be others, just examples. You can go into retirement without the constraints of retirement funds. Especially with the high income funds that are classified as return of capital and get the favorable tax treatment. Buy enough of one or two of these types of funds where you can live off the dividends and you never have sell any shares and your tax bill becomes minimal. Again - none of the retirement rules that govern Social Security or 401k’s.

Sean_VasDeferens

I was considering doing a backdoor Roth and then I saw your post and began Googeling. It appears that Roth accounts can't do any margin. I do Portfolio Secured Puts instead of Sash Secured Puts when wheeling. So I'm guessing that a Roth wouldn't work if my money is sitting in JEPQ. Permissible Income Strategies Because retirement accounts cannot use margin (borrowed money) or take on theoretically unlimited losses, your choices are generally restricted to cash-secured and risk-defined trades: \[[1](https://finance.yahoo.com/news/trading-options-roth-ira-strategies-140040173.html), [2](https://www.emparion.com/trading-stock-options-derivatives-in-a-solo-401k-or-defined-benefit-plan/), [3](https://www.schwab.com/learn/story/income-too-high-roth-ira-try-these-alternatives), [4](https://www.schwab.com/learn/story/trading-options-retirement-account), [5](https://www.investopedia.com/articles/active-trading/033115/trading-options-roth-iras.asp)\] * **Covered Calls:** Selling call options against stock you already own. You collect the premium upfront, which generates income while agreeing to sell the underlying shares if the option is exercised. \[[1](https://robinhood.com/us/en/learn/articles/options-strategies-for-retirement-accounts/), [2](https://smartasset.com/investing/can-you-trade-options-in-a-roth-ira)\] * **Cash-Secured Puts:** Setting aside enough cash in your account to buy 100 shares of a stock at a specific strike price. You collect the premium immediately; if the stock drops to that price, you are assigned the shares. \[[1](https://robinhood.com/us/en/learn/articles/options-strategies-for-retirement-accounts/)\] Prohibited Strategies Brokers and the IRS strictly forbid strategies where your account balance could drop into the negative or lead to uncapped liability: \[[1](https://finance.yahoo.com/news/trading-options-roth-ira-strategies-140040173.html), [2](https://www.schwab.com/learn/story/trading-options-retirement-account)\] * Naked (uncovered) calls. * Short naked puts. * Selling straddles or strangles that involve naked positions. * Trading on margin. \[[1](https://www.schwab.com/learn/story/trading-options-retirement-account), [2](https://www.investopedia.com/articles/active-trading/033115/trading-options-roth-iras.asp), [3](https://finance.yahoo.com/news/trading-options-roth-ira-strategies-140040173.html)\]

ThetaEdgeHQ

One angle nobody has pinned down here: you said you pay no tax on capital gains but 30 percent on dividends, so you are not US based. That matters because the short term income answer above assumes US tax treatment. In a lot of jurisdictions written option premium is taxed as ordinary income, which can sit above your 30 percent dividend rate rather than below it. If that is your situation the QQQI or JEPQ route is not clearly worse on tax, and the wheel loses one of the edges you are counting on. Worth confirming exactly how your country treats premium before you model 24k a month, because the after tax figure is what funds the life. Separate point: far OTM 5 delta QQQ calls pay almost nothing in low vol, and low vol grind ups are common. Your income gets lumpiest right when your expenses are fixed, which is the opposite of what the 4 percent rule is built to smooth.

EmbarrassedPart1256

Thanks for following up, even if you’re one of the ones who downvoted me 🤣 I know it seems that way, I’ve just done a lot of DD on it & really like what I see for a penny stock. Fun fact: Berkshire just bought a housing stock, the first purchase since Warren Buffett stepped down (I believe). I just really like the company/idea. I want the stock to reflect the underlying subsidiaries, Instone & CSI. The holding company may have some things to work out but they’re making serious strides. What you said is so true, for trades, which $CAPS is until it isn’t. I missed so many swings on the way down because someone on ST had convinced me not to swing it (imagine; I’ve been getting my head right recently). Everyone else is trading it & every other ticker. It’s the way to do it. For investments, I think you can/could/should be somewhat emphatically invested as well. I currently hold IWMI, JEPQ, UTF, USOI, SLVO, PFFA, & IDVO, & I like them (besides SLVO; still on the fence after today’s drop) so much that I don’t really care about the price. A lower price just means I can buy more.

Basic-Goat6329

So at 61 you're already heavy on income ETFs which makes sense. JEPQ, JEPI, QQQI, and SCHD all overlap a lot in what they're trying to do though — you're paying for four slightly different flavors of the same thing. On $3k I wouldn't add a new position. I'd top up whichever one you're most underweight in relative to where you want your income vs growth split. If you want more stability, SCHD. If you're okay with volatility for higher yield, JEPQ. Since it's a taxable account, keep in mind the dividend tax drag(something to think about) Canadian withholding on US ETFs in a non-registered account eats into your yield more than people realize.

Various_Couple_764

Your 61 the priority should long term inomce at the lowest taxes. invest the money in QQQI in the US QQQI generates ROC dividends and as a result the dividends will not be taxed until the share cost basis reaches zero. It will take about 7 years for the QQQI cost basis to reach zero. At that point the dividends are taxed as long term vcpatial gains. tax rate. VTI and VUG don't genrate any meaningfulll dividend income. JEPQ and JEPI generate high yield dividend income but they are taxed as ordinary income (the highest tax rate). My understanding canadian taxes are similar toUS. so I am assuming for you it is taxed the same way as in the US.

TequilaTrader

I don’t understand why JEPQ is down 3%. All the calls they sold went to zero.

Margaritashoes

Pop that into JEPI, JEPQ and have monthly income. Or it’ll crash.

DramaticDirection292

The Nasdaq is an exchange, you can buy publicly traded shares of it. It does not own indexes, there are composite indexes based on companies listed on its exchange, such as the Nasdaq 100, which are the largest 100 companies. What I think you’re asking is what funds track the NDQ. Those would be funds such as one of the most popular, QQQ and others like ONEQ, JEPQ, etc. These are all mostly passive funds owned by various companies (Invesco, JPMorgan, Fidelity, etc.). There are tons of various funds all with different flavors based on Nasdaq listed stocks, which yes will include SpaceX once listed.

sharekharid

Put in JEPi, JEPQ and SCHD

gclary

Realized on a dump day it takes too long to dump 50 stocks, so when I bought the first dip (should have waited for the 2nd dip), I consolidated in Arty, AIQ, JEPQ,VGT and Soxx. That covers most of the AI sectors without having to go home and do due diligence every night and wake up at 5Am, developing a strategy of what I'm keeping and dumping. I don't need the stress. I also bought 7 long dated, far out the money MRVL calls, if MRVL goes up 40 dollars a share by August, I can pay off my house with my 20 year roof, and my sh1tbox Tesla, the rest I will pile into JEPQ at 10% interest, and that's my level of F You.

Jealous_Bookkeeper20

The double-digit yield isn't magic; it is just a conversion of your capital appreciation into taxable income. Here is the catch: when you buy a fund like JEPQ or NVDY, the manager sells call options against the underlying stock portfolio. They pocket the premium and distribute it to you as yield. But in exchange, they cap the upside. If NVIDIA or the Nasdaq surges 10% in a month, the fund's capital appreciation is cut short. If the market drops, however, you take almost the entire loss, cushioned only slightly by the option premium. Over time, this asymmetry leads to "NAV erosion." You get the monthly distribution, but the underlying stock pool shrinks. If you are in your wealth-accumulation phase, this is incredibly tax-inefficient because that monthly income is taxed at ordinary rates, whereas long-term capital gains compound tax-free until you sell. Comparing the time-weighted total return (with dividends reinvested) against the simple underlying index is the only way to expose the drag. Are you holding these in a taxable account or a retirement wrapper?

Jealous_Bookkeeper20

The double-digit yield isn't magic; it is just a conversion of your capital appreciation into taxable income. Here is the catch: when you buy a fund like JEPQ or NVDY, the manager sells call options against the underlying stock portfolio. They pocket the premium and distribute it to you as yield. But in exchange, they cap the upside. If NVIDIA or the Nasdaq surges 10% in a month, the fund's capital appreciation is cut short. If the market drops, however, you take almost the entire loss, cushioned only slightly by the option premium. Over time, this asymmetry leads to "NAV erosion." You get the monthly distribution,The double-digit yield isn't magic; it is just a conversion of your capital appreciation into taxable income. Here is the catch: when you buy a fund like JEPQ or NVDY, the manager sells call options against the underlying stock portfolio. They pocket the premium and distribute it to you as yield. But in exchange, they cap the upside. If NVIDIA or the Nasdaq surges 10% in a month, the fund's capital appreciation is cut short. If the market drops, however, you take almost the entire loss, cushioned only slightly by the option premium. Over time, this asymmetry leads to "NAV erosion." You get the monthly distribution, but the underlying stock pool shrinks. If you are in your wealth-accumulation phase, this is incredibly tax-inefficient because that monthly income is taxed at ordinary rates, whereas long-term capital gains compound tax-free until you sell. Comparing the time-weighted total return (with dividends reinvested) against the simple underlying index is the only way to expose the drag. Are you holding these in a taxable account or a retirement wrapper? but the underlying stock pool shrinks. If you are in your wealth-accumulation phase, this is incredibly tax-inefficient because that monthly income is taxed at ordinary rates, whereas long-term capital gains compound tax-free until you sell. Comparing the time-weighted total return (with dividends reinvested) against the simple underlying index is the only way to expose the drag. Are you holding these in a taxable account or a retirement wrapper?

RemyVonLion

Dang you're lucky son, you can live anywhere that isn't crazy expensive then and not even work. I'm from California and I really miss it, but I wouldn't move back, at least to somewhere populated and thus expensive, unless I was making at least $100k/year, which you easily could. You just need to invest in enough dividend stocks/ETFs. Now obviously my favorite is CHPY, but I get downvoted every time I mention it, probably because people are scared of something too good to be true since the NAV keeps increasing while paying $.66 per share every week. So just to be safe you should diversify into other safe but high income ones like JEPI, JEPQ, QQQI, as well as safer ones like KBWY, DIV, SCHD, and VYM. After putting enough in those to get the desired income, the rest and future income can obviously can go into long term investments and options.

siskyouthrowaway

Thank you! You clearly know what you're talking about. 😃 I see these funds like JEPQ and QQQI or NVDY and wonder: what is the catch? How can they give double-digit dividends per year? In the near future I may be interested in investing in some of these for the income potential. But I want to make sure I am making an informed decision and not getting into some Ponzi scheme.

Jealous_Bookkeeper20

To see if a fund is returning your own capital, do not look at the S-1. You want the SEC Form N-CSR (the annual and semi-annual reports) or the fund's monthly Section 19(a) notices. The Section 19(a) is the exact breakdown showing how much of the dividend came from net investment income, realized capital gains, or actual return of capital. For active covered call funds like JEPQ or QQQI, return of capital is rarely a literal Ponzi scheme, but it is often a structural yield trap. If a fund writes call options, it caps its upside. During major bull runs, the fund cannot capture the full index gain, but during downturns, it takes the full hit to the downside. If they pay out a twelve percent dividend while the NAV drops, they are slowly eating their own seed corn to maintain the yield. The only way to verify if their options strategy is actually adding value is to track its time-weighted return against the underlying index or a simple index ETF. If the time-weighted return, with all distributions reinvested, underperforms a plain buy-and-hold of QQQ over a full market cycle, the manager is not showing skill. You are just paying an expense ratio for the illusion of monthly cash flow. Are you tracking the total return of these funds against a benchmark, or are you just looking at the monthly dividend payouts?

siskyouthrowaway

But what if it's not an index fund? What if it's a fund like JEPQ or JEPA or QQQI ?

slambooy

Nope. JEPQ.

slambooy

Now put it in JEPQ and make 5,500 a month in passive dividends.

InspectorDabbit_

Because everyone is interested in stocks that can actually grow, NVDA a slow plodding mess right now But, hey, JEPI and JEPQ thank you for buying their covered calls

Frequent-Length-9966

JEPQ

shiftylarenta

JEPQ

FearlessScience3019

If you wanna gamble. Buy JEPQ. Hope you get the 10 to 11% dividend... ride it out and deal with possible share erosion

East-Razzmatazz-8131

JEPQ

Big_Wave9732

I’d have to liquidate my JEPQ shares.  Which would suck ass, they’ve been nothing but $$$ for me.  But yea, I’m seriously thinking about it. 

Spiritual_Bat7343

the JEPI/JEPQ critique people are giving you is half right and half lazy gatekeeping. half right because those funds don't really sell calls on the underlying basket, they use equity linked notes and the option overlay is closer to selling SPX index calls. that's why income is smoother but upside capture is less than rolling your own CCs on individual names. for limited capital, one to two CCs per month on a single high IV ticker you already hold can match JEPI/JEPQ yield with better tax treatment (LTCG on shares, STCG on premium vs ordinary income, plus you save the 35bps expense ratio). minimum around 2 to 3k per position. timing matters: track iv rank on names you'd be happy holding, the pattern that works is writing when iv rank above 50 and skipping below. been pulling iv rank on thetaedge alongside the underlying chart on tradingview. more work than buying JEPI but a real lever if you feel stuck.

EmbarrassedPart1256

Hence why I try to stay as far away from it as possible. I don’t invest in any “broad index” funds. The only exposure I have is through $JEPQ.

dlnqnt

I’m building an income fund along with a growth fund. JEPQ doing fine for me in the income fund and will continue to reinvest the dividend. Plan is to have enough monthly to cover life. Take a look at QQQI too as its return of capital and works differently tax wise to JEPQ. Do a back test on both since inception and they come out positive. Of course nothing like the underlying but you are trading upside for income now.

Shadowrunner138

I was honestly thinking of going 50/50 with JEPI & JEPQ so I'm basically just following the S&P with a bit of overlap in the tech sector that seems advantageous for the next few years. If yields hold I'd average about 9% between the two of them and after about $20k cost basis I'd finally start generating over $100/mo and beyond in passive income to redistribute. At this point I really just need something more serious than corporate bonds and junk bonds in terms of percentages and I'm willing to upscale a little in terms of risks as long as a "hold or die" mentality can get me through a market correction that lasts a few years, I have bond funds growing for that.

EmbarrassedPart1256

$USOI has been an absolutely stellar trade so far; I’m up 9.2% & at this rate, the drop from the ($2.85/share) dividend payment won’t even put me in the red. I’ll just load in more. For more of a penny vibe check out $IWMI; they run a covered call strategy on the Russel 2000. It’s a way to get small cap exposure & let them pay you to hold it (& it’s dipping right now). Also holding JEPQ, MLPI, & UTF FWIW. Make your capital work for you & never *”work”* another day in your life.. 🤙 Live to trade another day!

Ok-Blood4340

Specifically when it comes to covered call, return of capital, ETFs like JEPI, JEPQ, QQQI, SPYI, etc, you are not receiving a “dividend” from free cash flow, you are receiving the profits from selling the calls as a distribution or return or capital. This is a performance risk, or execution risk. Meaning, the active investors have to perform, execute correctly, and make the correct calls about market direction. If they mess up, and do not receive the expected income from the covered calls, the distribution will be cut. Only some 1-3% of the return of capital is actual dividend from free cash flow from the underlying companies. So this means, you are borrowing money, hoping the active investors don’t screw up, so you can have your capital returned to you. If they make a mistake, distribution is cut, margin doesn’t get paid back. Furthermore, when it comes to covered call ETFs, they are exposed to 100% of the downside, but cap the upside at some percentage out of the money. This means that in bull markets, the share price of the ETF does not go up as much as the underlying index (because they are selling covered calls to pay that return of capital distribution.) TLDR: Covered call ETFs are not free money hacks. If they were, everyone would do it. They are exposed to certain risks.

EmbarrassedPart1256

I see the writing on the wall, that I should stop pushing my luck after doubling down on a losing $TE position & breaking even. Total gains: $1,332, net gains: $424... Gotta work on not losing the money just to make it back. I *can* make it back but I'd rather it all go to the bottom line... In $GMEX for 1K shares. 858K shares OS, Morgan Stanley holds a position, cost to borrow is 80.55%. Robotics is hot & they could be on the verge of a breakthrough, post-RS. ***This sub could literally lock up the float...*** I'll consider averaging down every $.10 or so, or getting in for a larger chunk if/when it starts to move, just don't want to miss the move if it's overnight... Holding $IWMI, $JEPQ, $MLPI, $USOI, & $UTF as a core, FWIW. Make your capital work for you, & never sell it!

OutrageousCricket637

Been holding $JEPQ... Returning around 12%, and the stock price is up from my average purchase another 10%. Providing a decent monthly return. Also chased $NVDY... Which I have been averaging down but it is returning over 50% and my position is only down 5%, which requires a lot more attention....

pureghostt

And put 100k into JEPQ😂 get paid for life

CraftyMeet4571

Congrats to you. I went full tilt at the right time. I sold off 1/4 of my position and bought about 1M in JEPI and JEPQ to lock in some gains. Gonna ride or die on my original gamble.

EmbarrassedPart1256

https://preview.redd.it/ltsyskkmsv0h1.jpeg?width=1170&format=pjpg&auto=webp&s=b11ac4be1d58c2aa85b4a68b6558a98fc7e4f9f1 I’m staying far far away from big tech right now; all-in on small caps & dividend-paying infrastructure & feeling great about it. UTF, MLPI, USOI, with some IWMI & JEPQ to milk the big tech exposure but it’s capped in my portfolio so as not to gal it when these IPOs take a dip…

ParfaitQuick8426

Very smart. I also have the safe stuff (goog, amzn, JEPQ/I, SCHD, SPYI.) But I KNOW BITO will blow up again, in 2028-9 with the halving (like you've mentioned)

CraftyMeet4571

I turned 163k into 4M off a penny stock. I did sell a quarter of my position and bought JEPI and JEPQ. I'm still at the casino but I don't play with options.

dutch1664

Thanks for the comment, regard. I remember having a $5K account that was up 10% in a day and thinking, if I could do this every day, I'd be able to retire. That was 2016 - crazy how far you can go. Very easy to hold the volatility, I'm use to, embrace it, and use it as an opportunity. I really just buy and hold but add on dips. This was just a way to boost. I do use margin too so I'm pretty far out on the risk curve but that's just to trade around my core. RKLB is a very long term hold. No plans to sell until \~$400. Then 75% is going into JEPQ and the rest I'll hold forever.

HungerSTGF

Or put a mil into a market indexed covered call etf like JEPI/JEPQ designed for retirement income and have a solid monthly income from the dividends

existing_for_fun

I hold SPYI, QQQI, SGOV, and JEPQ I use them as collateral. Passively, they generate 10% ish annually. (Not SGOV) Anyway, I sell CSP's and aim for 1.25 - 1.75% monthly. If I AVG 15% annually on CSP's and 10% on dividends I'm a happy camper. That is BEFORE compounding.

buried_lede

For short term, you want to minimize risk and that will reduce your upside. You could get between 3-4 percent from a short term treasury etf, like SGOV.  There are also buffer etfs that protect from -some-of the downside at the cost of some of the upside. DMAXis probably the safest and you could do 8ish percent in a year. Buffer etfs are tricky as to timing when is the best time to buy and sell them. You could take more risk and buy a covered call etf like JEPQ. It won’t capture all of a downturn but it would capture a lot of it. It is up 20-something in the last year. Treasuries mm funds would be safer than all of these. Then, as one commenter mentioned, there are the sandisk calls aka the money printer. haha. 

dutch1664

The company has so much more to come. My plan is sell about 75% once we get to $250B and by JEPQ. The rest is a forever hold.

Bartimus1111

JEPQ pays 11%+. Read about it. Im several Ms in for many years.

Bartimus1111

JEPQ or QQQI..Paying 11.11 and 15.04% respectively. Reduced upside and downside, but pays every month. Taxable, but better than savings acct. Also, Schwab pays decent on their money markets. You've frozen up, bro. Do something like above.

Emotional-Power-7242

If you retire earlier then you still use the withdrawl strategy but you just withdraw 3% or 3.5%. The 4% rule is just for planning though. In reality people might withdraw a little more in up years, a little less in down years, reevaluate every 5 or 10 years, etc. I'd recommend talking to a retirement planner who charges a one time consultation fee (not an ongoing management fee). Specifically targeting dividend stocks is not really an efficient strategy. When a stock pays a 4% dividend the value drops by 4%. So whether you recieve a 4% dividend or withdraw 4% there's no difference. The only difference is that a dividend is a forced withdrawl for tax purposes. Dividends aren't bad, you shouldn't avoid them, but there's no reason to actively seek them out or buy dividend funds. Something like SCHD isn't the worst but high dividend funds like JEPQ are a terrible idea. You probably should have bonds though, and in fact the 4% rule assumes you have bonds (40% or so), and those pay plenty of dividends if you're into that. If you're 100% equities and the market crashes ajd you're relying on that income you're going back to work. If you're 60/40 with a reasonable withdrawl rate you'll be fine.

tombrady011235

I’ve been wheeling JEPQ since 2024

goebela3

Yes, JEPQ pays "dividends" that are taxed at your marginal tax rate the same rate as short term capital gains. Covered call funds ALWAYS underperform their underlying index long term and the share price adjusts down by the dividend making it identical from a total return standpoint to selling shares.

betarhoalphadelta

How old are you? That's not shitposting. I'm legit asking. Covered call investment funds have a problem in that long-term results lag the underlying. It's the nature of covered calls--you're sacrificing upside for income. That might be good if you're a retiree or near-retiree with a big portfolio and you're just getting married late. That's stupid if you're 25-30 years old and still in accumulation phase. If the latter, you're better off selling some holdings to buy the ring, and then invest whatever is left in index funds and let it ride for 30+ years. But if you're in accumulation phase, don't mess around with JEPQ.

Furshake

If you aren't going to spend the dividends then there's no point. If you are, then I would suggest splitting your income ETFs among different things. For example, I hold OVL which doesn't cap the upside, but adds risk during downturns instead. I would also rather hold a more general covered call ETF instead of one focused so heavily on tech. I think JEPQ is something like 50% tech at this point. That seems kinda crazy.

Dead_Cash_Burn

If you are not moving everything in all accounts into JEPQ. Then no. Depending on the size of your account, you can actually borrow against yourself, and your dividends go to paying your loan to yourself.

FalseListen

So why are you posting here. Just move everything to JEPQ because you’re a genius

WeAudiHere

I guess the question would be would JEPQ at 12% yield, yield higher returns than taking this chunk of change and either keeping it in USFR vs moving it to QQQ or VTI. I want a safe place to keep this as an alternative to a high yield savings knowing that I will be using it in the next 1-2 years

WeAudiHere

USFR is rolling high yield federal bonds shielded from state income tax, at a rate of 3.4% vs JEPQ almost 12%. I already hold QQQ and VTI in multiple accounts including retirement

WeAudiHere

I have a 403B, 401K, Roth and IRA in Robinhood plus this fund. JEPQ is all tech for sure, but does it really matter if I’m only holding for 1-2 years for the extra income?

idobi

I cannot give you financial advice. I would consider holding QQQI or ROCQ in a taxable account over JEPQ because of the difference in tax treatment. Especially, if I am using the money to save for something.

WeAudiHere

Basically I want to buy one ring and not have to go back and trade up, she wants a natural diamond (which I don’t agree with but whatever not my choice), and I can take the money that I have saved in USFR and just increase the amount in the next year or two. Even with tax drag I’d be making more with JEPQ than USFR

DeerComprehensive909

I'm not familiar with USFR but as a JEPQ investor, I'd encourage diversification in some growth ETFs (QQQ, VTI, VOO). Also fairly low risk but will allow you to benefit from more of the gains we've been getting lately.

Emotional-Power-7242

SCHD is sort of fine. It's basically a value fund with slightly worse methodology. Some of the wilder stuff dividend gang promotes like JEPQ is actually going to ruin people though.

Saffuran

Just do VTI/VOO, maybe with 10-20% as JEPQ for dividend/income flow to compound on top of itself.

D_Pablo67

JEPI has more value oriented stocks. JEPQ is more NASDAQ 100 and a higher yield, over 10%. I like them both and own both. You buy these for income and some appreciation, and less volatility than the index.

CornerOne238

Sorry I meant partial conversion to JEPI/JEPQ or dividend stocks.

Muy_Division

Should I max out my credit cards and buy all the JEPI and JEPQ I can get?

originalrocket

I switched from JEPQ to GXIP and am very happy.

Good_Ride_2508

This is the best Answer. JEPI is inferior than VOO/SPY both ER and the Long term ROI. Same way, JEPQ is inferior than QQQ/QQQM both ER and the Long term ROI. JEPI/JEPQ is JP Morgan's marketing ETFs for wealthy people. JEPI/JEPQ looks like winning on concept, but both are not giving any benefit compared to VOO and QQQ. Better to stay invested in VOO or SPY or QQQ index ETFs.

Calflyer

JEPQ is another option. Gxip too

Sean_VasDeferens

For me it's been delta under .20, market cap over $200b, avoid tech stocks, moneyness greater than 10%, ROI greater than 10%, dte less than 45, avoid earnings, max potential investment on any one ticker $50k. Barchart has a great paid screener where I have the above parameters plugged in. I secure the position in either USTs earning 3.66% or JEPQ earning 11%. With 3.66%+10% I'm earning 13.66, backed with my JEPQ I'm earning around 21%.

BrilliantArm5914

JP Morgan Chase has two ETFs JEPI and JEPQ that use this method of providing income.

jt1994863

Both have a lower overall return than the indexes they sell the covered calls on (SP500 for JEPI, Nasdaq100 for JEPQ) AND because it’s paid out in mostly in dividends rather than share price appreciation, it’s a forced taxable event if it’s not in a retirement account. It is not possible for them to exceed the returns of the underlying index. You are who the first comment calling out dividend seekers is referring to, because you fundamentally don’t understand the asset you are hyping up.

jediDTX

JEPi and JEPQ have been certified machines since inception.

Long_Abrocoma_8480

From what I’ve seen, high yield covered call ETFs like JEPQ can really eat into your upside potential during strong market rallies because of the calls sold. It’s cool you’re thinking about reinvesting dividends, but have you looked into how those monthly payouts affect your long-term growth compared to just holding the stocks?

RichardFlower7

How do you feel about JEPQ. Bit higher reward, albeit the upside is capped.

snkscore

JEPQ should perform better (less badly) in a bear market but I just don’t understand why anyone would prioritize dividends over total returns. JEPQ performs almost exactly the same as 75% QQQ 25% HYSA so even if someone wanted less volatility they could get it by holding less of the underlying stock to get the same results. But focusing on high yield dividends so you don’t “have to sell shares” is what I hear a lot and it sounds like those people just don’t understand what’s going on.

Various_Couple_764

JEPQ doesn't pay 1% yield it pays a 10%yeild. QQQ in comparison pays a 0.6% yield but has a lot of growth.Covered call funds like JEPQ convert growth to dividend. So you don't get much growth but you get a lot of income. QQQ in comparison has a lot of growth but the dividend is less than 1%.

Mcslapchop

Funds like JEPQ will outperform in down and flat markets. But over the long-term they will underperform the index because selling the covered call caps their upside.

snkscore

The risk is that the market goes up and JEPQ remains basically flat so you lost out on all the growth. Say JEPQ pays you a 1% dividend payment and has no price growth but in that same term QQQ is up 3%? You’re trading away your upside for lower volatility. https://totalrealreturns.com/n/JEPQ,QQQ?

SirGlass

Basically these funds offer no downside protection so when the market drops they lose value. They sell their upside for dividend so when the market rebounds they do not rebound with it Now my understanding is JEPQ does not sell all of its upside so it can go up some extent. However if you look at the returns of JEPQ and QQQM, well JEPQ has a return of 15% while QQQM 18% Now that is only since 2022 so its not a lot of data. However JEPQ does not beat its underlying index.

therealjerseytom

> I’m confused by what you mean when you said “giving up the money you’d have if you just reinvest in the nasdaq” Click the link I included. If you'd invested $10,000 back in 2022, you'd have thousands more more $$ today if you just went in on QQQ/QQQM, than if you invested in a NASDAQ covered call ETF like JEPQ. And hell that's in the best case scenario of no tax drag. If this is in a taxable account the difference would be even bigger.