JEPQ
JPMorgan Nasdaq Equity Premium Income ETF
Mentions (24Hr)
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Reddit Posts
Four years in, what’s everyone’s take on JEPQ?
LTCG or dividends or cash to pay for big ticket fun?
What should non-wealthy investors be doing in their 30's to have a real, positive impact on their financial situation?
Is the wheel strategy a viable FIRE income plan vs. the 4% rule ?
When dividend yield exceeds portfolio credit line interest
What’s the risk with high yield covered call ETF
Is it smart investing 100k up to 1 million USD into these. I want both growth and dividend (monthly income) what do you guys think?
I want to invest 100k up to 1 million USD into these. I want both growth and dividend (monthly income) what do you guys think?
My Rebalanced Portfolio Mix - Still Working on Adjustments
Investing Strategy: Dividends viable for living in low income countries?
I am going to hit these with $100k total. AAPL, GOOGL, GLD, LHX, JEPQ, NVDA, ORCL, PLTR.
Portfolio Feedback Welcome
Feeling stuck in JEPQ - hold or take the loss to move to another fund?
anybody investing in these 10%+ dividend yield ETF's?
Help me improve this portfolio allocation for my girlfriend with $500K from RSUs
What are some good fixed income investments?
What’s the best way to invest to retire early?
How do I hedge my SPY+JEPQ+AMZN portfolio against risk if the Fed keeps rates high in May and inflation rebounds in April?
How bad has JEPI and JEPQ NAV erosion been in this volatile market lately?
I’m UP $223,000 Today. Got so lucky! Went All in Friday 4th.
Bought $1 Million Friday 4th. Post Got Deleted. I was getting burned! UP $37K so far…
Bought $1 Million Friday 4th. My post got deleted by mistake.
Advice for investing in this long call on an etf rather then a traditional stock.
I feel like I’m leaving so much money on the table. Talk some sense into me.
3rd year of maxing out my roth ira. How do my allocations look
FEPI Looking like a better JEPQ. 25% yield, solid price performance
Late to the party and new to dividend investing. Let me know what you think of my mix. I know I have overlap and probably too many, so any suggestions would be greatly appreciated. JEPI, JEPQ, JEPY, QQQY, SPLG, DIVG, SCHD and YYMI.
Is There Something Wrong with Yahoo! Finance?
Common criticism of covered call ETFs vs potential alternative?
HSA question, throw it in Jepq, reinvest in VTI?
Looking to supplement my military retirement income w/stocks,etfs
How would you invest $200k to generate $1,500 a month passively?
High Yield Monthly Dividend Stocks or Funds with High Option Volume?
Seems Fidelity doesn't add to your cost basis when you DRIP.
What place does JEPI/JEPQ hold in a world where Tbills and MUNIS start paying an acceptable coupon?
What’s a better short term investment (6-12 months), JEPI or JEPQ?
I have noticed that the same stock will be listed at different prices depending on the source. Why?
Mentions
People are extremely risk averse on this sub. I’ve been holding $500K of JEPQ for years and it has never felt unsafe.
Look into JEPI and JEPQ for monthly div income. It's from JPMorgan
JEPQ is a covered call ETF. It’s about collecting the premium from them selling covered calls. So far over the past 2 years it’s been about 40-60 cents per share per month in payouts.
I’ve been making about 150 a month from a 10k investment into JEPQ that’s been just set to DRIP for now. It was just an experiment investment. I’d say give or take 40k into it and you should be able to reach that.
Day trading isn't going to do anything for you with $10k. You need a large amount of capital to make any investments worthwhile. You'd be lucky to make 20 bucks a day if you hit on the right stock at the right moment. Plus, most brokerages wont allow you to make more than 3 trades in a day with less than $25k in your account. Don't even consider day trading at this point. For you, I recommend first maxing out your Roth to the annual $7.5K contribution, then invest within it with an ETF. I like Vanguard, so if you want the S&P, choose VOO. If you want international markets, choose VXUS. You can do a mix of those if you want to diversify, or even try a global fund like VT. Do some research so you know what you're getting into. But once you're in, just leave it. Don't buy and sell to try and corner the market or whatever - just let it reinvest and compound. Every year, add as much as you can to the Roth up to the contribution limit. With your remaining $2.5K, open a regular brokerage account with a firm like Fidelity, then invest in boring stuff like what I mentioned above. There are many other ETFs you can consider that encompass specific economies and business sectors if. Don't bother with stuff like JEPQ - $2.5K won't get you more than maybe $250 or so a year, and it's taxable income. Just invest in long term growth funds and keep on doing it over the years. It's not glamorous at 28, but when you're old and wrinkly you'll be glad you did.
bravo! thats some real conviction. two questions if you can answer: 1- how did you find HGRAF? and do you have your eyes on any other stocks? 2- how do you trade JEPQ? whats your strategy? If you can share Thanks!
I also now make 10-12k a month funny money with the 18000 shares of JEPQ I bought with my HGRAF winnings.
I convinced him to add some JEPQ. We’ll see how it performs over the long run but 1% a month is great
I believe JEPQ crawled so others could run.
Total return for JEPQ is 89% with DRIP (dividend reinvestment), comparable to VOO over the lifespan of JEPQ. Looking at nominal return for income focused ETFs is a smooth brained maneuver.
JEPQ +22% in 4 years SCHD +67% SPY / VOO +87% VTI +88% QQQ +137% QLD +268% “iT’s hElD uP wAy bEtTeR thAn mOsT peOpLe PrEdiCtEd” It’s shit.
JEPQ is QQQ on a leash. You get paid every month, but you give up some moon potential. Fine for cash flow, terrible if you’re pretending it’ll beat QQQ in a tech melt-up. Basically QQQ for people who want their tendies on a payment plan.
\+3.25k today, one of my best, will probably be giving it back tomorrow, so I am full porting JEPQ before ex-divi and moving to Maryland
That's a lot to keep up with. VGT or XLK would cover most of your positions in a single etf. GPIQ/GPIX is superior to JEPQ/JEPI. VTV, SCHD, or SPXT covers the blue chips.
I would throw everything into JEPQ
Return of capital concept is in many palace in the tax code often not labeled as Return of Capital. When you sell growth you are only taxed on the gains that occurred after you sold. Why? because a portion the income is return of capital. When you sell stock at a loss it is not taxed. Why? became it is all return of captial. Covered call ETF make money form selling covered call contracts. Now sometimes these contracts result in a loss. Good covered call fund seek to balance losses and returns so that you pay minimal taxes due to the balance of losses and gains. SPYI typically generates 95% ROC with the rest bing qualified dividneds. For a covered call fund like SPYI The return captial is subtracted form the cost basis of your shares. which is similar to how capital gains taxes work. If the cost basis is above zero you owe no taxes. Typically it taxes about 9 years for SPPYI cost basis to reach zero. Once the cost basis reaches zero you dividend are taxed at the long term capital gains tax rate. which means worst case only 20% of the income is considered taxable income which is a 80% discount from your work inimcoem Now many will mention 1256 contracts and 60/40 split of long term and shaort term captial gains. But this only apples to fund management not you the investor1256 is an internal part of how Neos handles covered calls but has no bearing on your taxes. Also not all covered call funds generate return of capital JEPQ and JEPI are popular CC funds. But the dividned is taxed as ordinary income. And others may generate ROC and ordinary income to determine how the income is taxed you need to review December 19A or 8937 forms which willl provide tax information. Also be away of funds like yield max that hav more losses than gains. This results in destructive ROC and NAV erosion. generally covered call fund with yields avboe 15% have NAV erosion but but funds with yields below 15% generally Have NAV growth which is good. All Neos funds like SPYI are good without NAV erosion.
NEVER trade with money you can't afford to lose! After 20-years my job gave me a 1-year severance in 2024, which I then focused heavily on up'ing my trading skills etc., so glad my brother-in-law had got me into trading in 2023! Ultimately I retired early not wanting to compete with other (now 20) to 40+ year old engineers that have been getting laid off as well. I was trading in the upper 60 to mid 70 percentile, as far as win / loss, nothing spectacular (aka worthy of a YouTube channel LOL!) Once I discovered the monthly return ETFs (QQQI, SPYI, JEPI and JEPQ), in my IRA, I went all in, and bless, they're paying my mortgage every month and other bills. I've also added some income ETFs now in my stock account to make cash when I'm not trading, I park those returns into SNSXX (avoiding state taxes) as emergency cash / dry powder for trading. Recently learning of OVI here on Reddit, I'm trying some of that too to see how that does... Good luck w/your investments!
The S&P 500 ETFs VOO, SPY and IVV are an easy way to invest on a schedule (dollar cost average) and make excellent long term returns. But you miss out on great stocks. Building a base of first $25k in VOO then looking at some great individual stocks is fine. I have mostly individual stocks, but still some VOO, QQQ, IJR, JEPQ and JEPI.
$300,000 in ETFs Just keep adding to SGOV, huh? *Don't be afraid to pay taxes on profits.* SGOV is a 4% return. VOO or JEPQ is 10%.
If you finally saved 5k for a 5k trip next year, I keep it in something safe like SGOV, because any loss means you can't take the trip you planned. If you are investing for a potential trip that isn't planned and trying to grow money, then total after-tax returns are all that matter. Everyone's tax situation is different so you need to do your own math (or ask AI), but generally LTCG (VOO) is the best tax treatment you can get, and unqualified dividends (JEPQ) is the worst.
My "thesis" if I have one, is basically to keep the large amounts in well known, highly regarded ETFs like SCHD, SCHG, FCPI, JEPQ, QQQI, etc., and smaller amounts in individual company stocks.
Here is a big one... Hi everyone, I'm trying to grow two accounts as much as possible. I don't have a taxable brokerage. I have a 401(k) in a target date fund which I contribute through my employer to get the full company match. I have a traditional IRA which I moved from one brokerage to Fidelity just so it's all under one roof. I'm not worried with the trad. IRA as I'm just letting it grow. The two accounts I want to build are my Roth IRA and my HSA. I have a Roth which I started with $600 about a year ago and haven't really touched. I have an old HSA that I **can't** contribute to because I'm not enrolled in a high-deductible health plan (HDHP). I would like to try to grow both as much as possible. SO... I am going to start maxing out the Roth (catch up on this year to the limit and continue to contribute throughout next year going forward) and just leave the HSA money to grow. Initially, I used Google AI (just the basic search AI, not Gemini) to help pick ETFs for each. It narrowed down about 60+ options that I was interested in to these: Roth IRA: SCHD 30%, DGRO 20%, JEPI 15%, JEPQ 15%, SCHY 10%, VNQ 10% HSA: SCHG 50%, SPMO 30%, VGT 10%, SOXX 10% I worked with the AI a little more and it advised that for tax efficiency / advantages, to SWITCH or flip flop the holdings between the accounts (sell the 6 positions in the Roth and purchase them in the HSA and vice versa). Now, they've been doing well as is. Would I be gaining anything tax advantage-wise by flipping the holdings, or should I just leave everything be? I'm pretty confident in the AI fund picks since they were just narrowed down from my own list (using metrics such as low expense ratios, low stock prices, good dividends, etc.), but I want to grow these accounts as much as possible, be as tax-advantaged as possible, in order to sit comfortably in retirement (year 2050). Thoughts? I'll answer any questions not addressed as I've already made this post pretty long.
Start maxing out your Roth and put the rest of your money in a high yield stock such as JEPQ
no. you need to Generate 2 million after tax dollar and put them into JEPQ/SPYI to get decent stress free monthly income. Those income need to check cover your medical bill or any unexpected outcome.
I feel like I've seen this post somewhere 😂. JEPQ and chill. easy double every 5 years. go with the current, or don't, idgaf. Actually don't, I don't know where I'd get my spank bank refilled at...
Hold SPCX through 2030. My preferred covered call ETFs are JEPQ and JEPI.
I have JEPI and JEPQ at like 10% of my portfolio. Good income but not too outsized as you can miss out on upside with these products.
Stash this all in JEPQ or JEPI and reap a nice little 10% a year dividend return. DRIP everything you don’t need for taxes and by the time it’s time for retirement you my friend are pulling a nice little salary just by sitting on your ass
Put it in JEPQ and earn $7700 a year 😂
How did you manage to lose on JEPQ
Great gambling strategy. Goes from JEPQ to Nbis and MU lmao
I'm over here laughing at JEPQ in there for the vibes. Insane levels of retardum.
If you have 700k cash. JEPQ pays 11% interest. Thats 77k before taxes. Even a high yeild savings account beats your loan rate. Get serious about getting a job. ANY job. Be a dog walker if you have to. a 2.8 interest rate is free money. Don't touch that unless you're losing your home.
Put that into JEPQ and earn ~$15,000/month in dividends paid out every 5th of the month. Easy money and never have to work again. You can even take 5k of that and chip away at your remaining debts each month
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.
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.
Some risky but high. MAIN, JEPI and JEPQ. Safe but low SGOV. Do some research into this.
JEPQ- limit buy at $58.5 per share to catch at its low.
I’m down 4 months of JEPQ dividends today this is not sustainable omg
"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.
JEPQ would have paid $20k+ this month on this principal…
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 🤣🥲
JEPQ has returned 17% annually since 2022 sleeeeping on that one
Kinda wanna full port JEPQ with 50k. Looks like Ill double my money in 5 years
i jus i jus let JEPQ make the calls for me 🤤🤡🥴 J.p. morgan so smart
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.
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?
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.
If nothing else get into something like JEPI, JEPQ, SPYI, QQQI and start accumulating dividends while you wait.
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! 😃
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
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
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.
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. \[[1](https://www.schwab.com/learn/story/trading-options-retirement-account), [2](https://www.investopedia.com/articles/active-trading/033115/trading-options-roth-iras.asp), [3](https://finance.yahoo.com/news/trading-options-roth-ira-strategies-140040173.html)\]
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.
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.
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.
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.
I don’t understand why JEPQ is down 3%. All the calls they sold went to zero.
Pop that into JEPI, JEPQ and have monthly income. Or it’ll crash.
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.
Put in JEPi, JEPQ and SCHD
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.
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?
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?
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.
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.
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?
But what if it's not an index fund? What if it's a fund like JEPQ or JEPA or QQQI ?
Now put it in JEPQ and make 5,500 a month in passive dividends.
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
If you wanna gamble. Buy JEPQ. Hope you get the 10 to 11% dividend... ride it out and deal with possible share erosion
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.
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.
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.
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.
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.
$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!
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.
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!
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....
And put 100k into JEPQ😂 get paid for life
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.
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…
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)
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.