QYLD

BigBump

Time to dump half of that into QYLD and wait for the tax man to cometh. If you're going 100 contracts deep, try XSP or straight SPX. SPY taxes hurt.

trustmeep

Not quite a wheel strategy, but QYLD works well for covered calls.

codeartha

I would just never switch to bonds. At least not before retirement. After retirement why not. But I would rather go into some high dividend ETFs. Depending on your risk you could look into covered call ETFs like JEPI or QYLD for a nice 10 ish% per year dividend paid monthly. But these ETFs dont do particularly well so I wouldnt put more into these than needed for the monthly payout to cover my living expenses. There are ETFs that pay a nice 5-7% dividend that have a NAV that doesn't move around as much as covered call ETFs and do better overall so I would go with some of those. Diversifying between sectors or countries.

Senior_Rip_360

QYLD at these levels adding to already overweight position held covering expenses and RMD along with ARCC,STWD,ABR,OXLC,AGNC. Key point is buying these on dips as dividends paid out melts the NAV . At age 76, retired, willing to take risk in view of reward, I am enjoying the ride. All traded in IRA,dripping and constantly vigilant for opportunities. The power of compounding and the rule of 72 work very well for me!

tech01x

You should put most of it into a Roth IRA, but remember, you can only put in an amount equal to your earned income (ie. Income from a job) I would choose an income generating ETF like JPEQ, QYLD, or TLTW. With so little, the goal is to get some additional funds from those dividends, after taxes, that you can either use as spending money if you need it, or invest into individual stocks. I would not invest your base (principal) amount into individual stocks. The idea is a marathon, to preserve capital and use the extra change to take the bigger risks. If that money goes poor, then wait for the dividends to replenish.

greenpride32

I've been considering JEPQ but so far only dipped my toes into JEPI. If you look at QYLD (pure covered calls NASDAQ100) it has not preserved capital over time. There is also the newer QQQI at even higher yield. I was concerned higher volatility on NASDAQ 100 could also prove to be challenging to JEPQ - but they've done okay -much better than QYLD. I think with more time my confidence will grow in JEPQ and I'll eventually accumulate some amount.

greenpride32

I used to have a several dividend paying stocks. But I decided to dump the ones which were mostly flat performing and keep the ones that had captial appreication. Instead of picking individual stocks I went with an ETF called SCHD. It holds roughly 100 stocks and yields about 4%. Over time the captial has appeciated as well. Keep in mind the fund is managed and not tracking any index, so in sense you are relying on the managers to do a good job. My thought process was many high yield diviend stocks are very high debt and operating and distributing solely on cash flows. Any hit the cash flows could be detrimental to the bussiness and the stock. So why risk captial used for dividend income on few to several companies, when I can get a more diversified basket? Other dividend income I have is from ETF's UTG and JEPI. They both yield roughly around 7%. UTG is a focused on utility stocks such as energy and telecommuncations. It pays a higher rate because they use some leverage with those same companies. But this is about as safe as leveraging gets. JEPI primarily sells covered calls like many other covered called based ETF's. But unlike most others, it has other activities to help mitigate risks and protect capital. If you compare it to pure covered call ETF's, it seems to preserve capital much better - but at lower yield. If you want to review pure covered call ETF's check out SPYI and QYLD.

vt2k

QYLD is dumb. In the short term you *might* make money on growth and dividends, but a 10 year chart shows nothing but capital loss on invested principal.

Unique_Chemical5719

You’re thinking in the right direction, but just keep in mind getting $2,500/month from $400K means you’re aiming for a 7.5% annual yield, which is doable but comes with risk. You’ll likely need a mix of high-yield ETFs like JEPI, QYLD, RYLD, and SCHD to get close, maybe with some REITs or covered call funds in the mix too. Selling the condo could make sense if the ROI is poor and the housing market there feels stagnant, but don’t forget that dividends can fluctuate, and capital preservation is key when you’re relying on that income. You could also phase the move sell half now, test the strategy, and see how steady the income really is. Aim for balance: income today, but not at the cost of eroding your principal too fast. Good luck.

Unique_Chemical5719

Solid plan wanting to build a small income stream, but just to set expectations pulling in $500 to $1K a month from $20K means you're aiming for a 30% to 60% annual yield, which is pretty unrealistic without taking on serious risk. That said, if you're cool with more modest monthly income (like $50–100), then ETFs like SCHD, JEPI, HDV, or QYLD are worth a look. They offer decent yields (4–7%) with a bit more stability. If the goal is to offset small bills, keep it simple and sustainable and let compounding do the heavy lifting over time.

Mikecall

Throw 98k in VOO, SPY, QYLD, and VTI, if you flipped 2k into 100k once you can do it again

EngineerDirector

Every single hedge fund does it…. How do you think $JEPI $QYLD $RYLD $XYLD and all the other pay dividends?

yeti900513

That’s what QYLD does for you.

plk2024

Buy QYLD and reinvest the dividends

lOo_ol

You're sure you have the right ticker? Here's its [Yahoo! Finance page](https://finance.yahoo.com/quote/QYLD/).

lOo_ol

*"Where do you see it has lost 18% over 5yrs charts don’t show it"* [See chart here](https://i.ibb.co/BVkQrj5k/QYLD.png)

lOo_ol

QYLD is a covered call ETF. It lost 18% of its value over 5 years. If you're looking for dividend and at least some growth, take a look at TSLX and ARCC. They've had a yield of roughly 9% while growing a bit.. Make sure there's a prospect for future growth/dividends before buying though. Past data might be deceiving.

jobronxside

I haven't heard of QYLD , i give it a look to see if I should, thanks

BaBooofaboof

QYLD is like 10% yield. I would stick with that and some growth stocks. NFA just my preference.

chrissurra

Adding to QYLD and JEPQ. Dividends for LYFE.

serviceinterval

In today's episode of how does my dick taste: Imagine 2 years ago I bought 10,000 shares of T @ 12 instead of QYLD

illz757

I read some ones DD to buy calls on AMD the other day and full sent it with my last available money on that - only calls in my portfolio, but my SPY and QYLD and DIA puts are about to fucking PRINT

weamz

I see it has 8.24% dividend yield and 11.76% price appreciation over a 1 year period. My thinking on QYLD was that it has a 13.74% dividend yield and while it's been down 8% over the past year but I was hoping for a price rebound from the 16.50 it's currently at to around 18 in the next year or so. So around a 20% gain was what I was hoping for. As for TQQQ it's down 10% over the year and I was thinking that it would be a nice return if there's a rebound into the 80s from the 55 it's at now. Your call looks like a much safer bet to get around 15%-20% return over the next year based on the last 5 years.

weamz

So I have about $20k to invest personally with another $10k in a 401K that does it's own thing. Today is the start my investing adventure. I'm not into too much risk. Ideally I'd like to make at least over 10% annualized returns. With the market down recently I figure it's a decent time to get in. Or should I wait for it to fall further with all the Trump stuff going on? After looking at a bunch of ETFs I'm considering either TQQQ or QYLD. Thoughts?

weasler7

Before running a poor man’s covered call strategy, why not look at a covered call strategy on QQQ ETF like QYLD. If you like the way that ETF performs then you can consider whether it’s worth the complexity of executing a PMCC yourself. IMO if you’re taking advice from YouTube or social media, you are probably gonna lose all your money.

SoWaldoGoes

QYLD and make 60k in dividends a year

VegasWorldwide

Not sure about dividends as I’m still working on them but REITs I’m all in on $ESS.  They’ve been golden.  Realty income is good too.  The dividends I’m currently involved with are JEPI, SCHD, QYLD, PMT and BXMT.  That’s a work in progress for me.  

MaxGoldsteinAlpha

**Smart move keeping capital preservation in mind.** With $505K, aiming for $3K/month (\~7% yield) requires strategic allocation. **Higher-dividend ETFs** are an option, but watch for sustainability—many high-yield funds juice returns by depleting capital. **T-bills + dividend stocks + covered calls** could balance safety and cash flow. If you want **real passive income**, look at income-generating assets like covered-call ETFs ($JEPI, $QYLD) or REITs with solid FFO growth. You’re already ahead by not rushing into real estate at current rates. **Capital allocation matters more than chasing yield.**

Ka07iiC

I think a lot of us would rather just have high returns/growth with little consideration with income (for now). There are tools out there to beat 3k income such as JEPQ (9%) and QYLD (11.95%) that can provide decent income. Definitely not optimal for RoR over the long term

Hypersonicaurora

You can’t go wrong with QYLD consistently around 12% per year

inbituin

QYLD or XYLD at dividend yield 10-13%. Gives you your dividends monthly which you withdraw and spend or roll over into it.

Sea_Dragonfruit_9770

ARCC has good divs (8-11%) and is a very strong company. I’d go with that over JEPI/JEPQ/QYLD and similar type funds that were recommended. I think this would help your goals except for the monthly div - its quarterly.

eroseahawks

JEPI and QYLD. Monthly high dividend derivative ETFs. I DRIP currently but plan to switch them to dividends during retirement to supplement 401(k), ROTH and brokerage.

serviceinterval

I bought 20,000 shares of T back in August 2023, I'm up 93%. You were buying QYLD, we are not the same.

PasteCutCopy

Holding about 350k in QYLD that’s earmarked for redeployment into VOO & VTI. Earns about 3500 in dividends a month which I basically reinvest in a basket of ETFs. I currently default to 500 day DCA no matter what but will start greatly increasing once the indexes are down about 30% off highs (we’re currently less about 10% off highs).

Straight_Turnip7056

Just get a covered call ETF like QYLD

greenpride32

Thanks for the tip - I will look into it. I had been keeping an eye on JEPQ QYLD and the like. I haven't quite figured out if there is a long term irrecoverable decay factor - at least in QYLD. JEPQ is partially managed.

polandtown

It has its places, perhaps you could use it as a task list to dive deeper into rates at their relative sources. Extra work, I know but oh so worth it. Maybe it will let me post a distilled list you can research further. Best of luck! # Low-Risk Options (Short-Term & Liquid) * Treasury Bills (T-Bills) * Treasury Notes & Bonds * I Bonds * High-Yield Savings Accounts (HYSA) * Money Market Accounts (MMA) * Money Market Mutual Funds * Brokered CDs # Moderate-Risk Options (Yield + Some Growth) * Municipal Bonds * Corporate Bonds * Bond ETFs (e.g., BND, LQD) * Dividend-Paying Stocks & ETFs (e.g., VYM, SCHD) * Preferred Stocks # Higher-Risk, Long-Term Growth Options * REITs * Covered Call ETFs (e.g., JEPI, QYLD, XYLD) * TIPS (Treasury Inflation-Protected Securities) * Private Credit & Alternative Lending (e.g., Fundrise, Yieldstreet, LendingClub)

PasteCutCopy

First, no company is too big to fail. Eventually all companies fail. Second - what is your timeframe to use for those funds? What is your goal? Putting anything in the stock market requires a long time horizon. Third - what you are seeking is a dividend it sounds like. Some companies pay one while others do not. Fourth - with so very little to invest, you’re better off looking at an ETF and most likely you want VOO or SCHD as they track a large basket of great companies rather than trying to pick one single company which is much riskier. SCHD pays about 3% dividend annually which isn’t too shabby for a growth oriented fund. Other options are to look into high yield funds like QYLD which pays 1% monthly. It’s not bullet proof though the value of the shares can drop. I bought in for $21 a share a few years ago. It’s now at $18.7 or something so I lost about 10% in the share value but since I’ve owned it for so long, I’ve made about 35% in it. It’s not a lot given that I’ve held for like 4-5 years but I have different goals for each of my accounts. Anyway your goal as an investor is to spread risk, diversify, and learn. You must become financial and economically literate to survive this game otherwise you’re just listening to random people on Reddit like me

wilhelmshout

Systematics. QiS. Overwrites. Big funds are the JHEQX and the two smaller ones that leave a pretty large footprint on SPX. and QYLD is a pretty big one as well. But these funds are everywhere and quite large. Yield stacking basically. Start googling terms, tag me if you get stuck.

wilhelmshout

Systematic overwrites skew down call premium and are underpricing right tail scenarios. JPM collars / QYLD’s of the world consistently getting run over. I can’t speak on tastys methods because I don’t care for them/ pay attention to their methodology, but part of what you’re saying will happen if everyone is “just selling high IV” is already happening on the index level.

energybased

\>  So it’s not affected by volatility as shown since inception. I’m not saying it’s impossible for it to crash. But if you’re willing to bet on the nasdaq top 100, QYLD is a lot safer. That’s just a fact. First, this is definitely bad logic. A fund that sells options is necessarily worse (in terms of expected returns) since options have costs, and the expected value of the option is zero. You essentially have bought insurance (at a cost) to trade some large payouts for constant income. Second, why are you comparing to the some arbitrary set of 100 stocks? Compare it to the whole market. And it is clearly worse than the whole market (in risk-adjusted returns) unless you have a crystal ball since it's an arbitrary tilt.

MobbDeeep

This isn’t a normal fund, it sells covered calls to the 100 biggest tech companies. So it’s not affected by volatility as shown since inception. I’m not saying it’s impossible for it to crash. But if you’re willing to bet on the nasdaq top 100, QYLD is a lot safer. That’s just a fact.

imgurslashTK2oG

I strictly play weekly QYLD calls, the further OTM the better.

energybased

\> I don’t see any good reason for QYLD to crash Your gut feelings are not an investment factor.

MobbDeeep

While I do agree I don’t see any good reason for QYLD to crash, it’s already a parachute of the biggest tech companies. These tech companies are already unlikely to go crash and very unlikely to crash all at once and even more unlikely to all go bankrupt.

MobbDeeep

Oh my bad, I understand now. QYLD is pretty stable though. It isn’t really affected by the prices of nasdaq and actually does well in volatile periods. The downside is that it doesn’t really grow either. So annual return is basically 10%+ on average.

MobbDeeep

QYLD has an average dividend yield of 12%+

themgmtconsultant

Depends on your risk tolerance. No risk tolerance, go CLOI. Some risk tolerance, go XYLD, XDTE QYLD QDTE. And onward it goes to more risk more reward.

WallStreetBoners

$QYLD is a good way to do this with fewer steps. Best in a tax-free account

inbituin

QYLD or XYLD at about 12% dividend yield and gives it back you every month. With $2M, it gives you about 240K per year or 20K a month without dipping into your money and capital gains. With that money, I would probably just travel, live everywhere overseas and try not to own anything and just enjoy life everyday.

BearishBabe42

I would mix a bond ETF, a dividend ETF that tracks some sort of major index with higher weighrs in dividends, and maybe an income related ETF like QYLD. Yoy should be able to get 7-8% dividends and still maintain a modest rate of growth if you play it right. This way yoy get a nice payout and still retain some growth.

CnslrNachos

My biggest beef with JEPI is that the underlying stock portfolio is more defensive (by design) than the S&P, whereas JEPQ is targeting beta closer to the NASDAQ.  I do like the differentiated return streams (appreciation, option income, dividend income) and prefer a combo of JEPI/JEPQ to just JEPI or some of the other similar options on market (QYLD, etc), but this is really more of a fixed income alternative for me (as I don’t own any fixed income). 

blindwitness23

QYLD had a annual dividend of $2.25 per share. If you invested $1M on January 1st 2024 it would mean you purchased 58.824 shares which would make you an average of $132.354 that year. Additionally you would make $92.361 just by the rise n QYLD price alone.

blindwitness23

You could do it with $1 Million invested in QYLD or SPYI

stonewallmfjackson

What is better than dividend investing? Nothing I make 63 dollars a year on QYLD

WallStreetBoners

I mean at that point just buy $QYLD and let the pros sell the covered calls.

ShootFishBarrel

My biggest mistake was getting too aggressive with a covered call fund when borrowing costs were low (under 5%). I invested heavily in QYLD, an ETF that sells covered calls on the Nasdaq-100 to generate higher yield—around 10% annually. For the first couple of months, I collected solid distributions, but then the market plummeted. With a fund like QYLD, it’s difficult to recover your initial investment if the underlying price drops significantly. Because the fund continually sells covered calls, any subsequent rebound must be both immediate and substantial for the fund to recapture lost ground. Otherwise, the covered calls lock in lower strike prices, limiting upside without fully protecting against downside—an issue that applies to individual covered calls, too. For anyone looking to earn extra income by selling options, here are a few guidelines: 1. Stick to index-based or broadly diversified funds. Diversification reduces the likelihood of catastrophic losses. Liquidity is also critical, especially if you need to buy or sell to close an option. With individual stocks, events like splits or reverse splits can crush liquidity for your specific contracts. 2. Choose your call strikes carefully. Aim for the highest strike price that still provides a worthwhile premium. This helps balance the trade-off between collecting income and not sacrificing too much potential upside. 3. Recognize that selling calls is essentially a bet against volatility. If you’re making that bet, selling puts simultaneously (a “strangle” or “straddle” setup, depending on strikes) may help offset losses if the market moves dramatically. However, it also increases complexity and potential margin requirements. Be ready to manage or adjust your positions—rolling out the expiration date or lowering strike prices—to mitigate large moves against you. These points won’t eliminate risk—options always involve uncertainty—but they can help keep you aware of liquidity issues, volatility exposure, and the trade-offs when collecting premiums.

DieOnYourFeat

QYLD and other CC funds are definitely not a scam. They may or may not fit your investment needs, but QYLD has returned 8.8% annually over the last 10 years with some favorable tax circumstances. What most people fail to consider are the tax implications when they invest. Is the income that flows from it short term gains, long term gains, ROC, etc. Many of these funds return non destructive ROC and this has profound implications on total return. Additionally, the tax treatment of premium options vs regular income is important as well. It is not as simple as most people think. I think there is definitely a place for these funds in some portfolios as long as you watch the NAV and ROC issues carefully. And like any other investment, a number of them just are not a good choice.

throwaway_0x90

I'm actually sorta clueless but here's a good website that you can do some compares with: - https://www.etfcentral.com/compare-etfs/ISPY-vs-JEPI - https://www.etfcentral.com/compare-etfs/IQQQ-vs-JEPI - https://www.etfcentral.com/compare-etfs/QYLD-vs-JEPI Just change the URL at the end to the symbols you want to compare and change the comparison chart to 1Y or so. ISPY seems to have clearly beaten JEPI for the past 365 days according to that website.

Ill-Squirrel-7276

I hold between 2-15% of my portfolio in SOXL. I mostly move money between QYLD. Basically, if there is a big downward correction in Semiconductor stocks that is speculative (DeepSeek) or isolated event (Samsung factory fire in 2021) I'll start selling QYLD and DCA'ing into SOXL in 5-10 daily purchases until I reach 15% of my portfolio. I set a sell order trigger based on the expected recovery price and try not to panic as daily price movements swing wildly. Now if there is a prolonged crash, I'm still screwed, but that's why I only gamble with leverage on a small % of my otherwise vanilla portfolio.

Mrtoad88

The ultimate passive income machine in the market is dividend growth investing, that can be more passive than damn near anything, literally anything...it's a true form of passive income. I never liked wheeling just to wheel for income, I messed around with it years ago just to get experience with it, found it to be tedious, boring, and a lot more work for not that great of returns imo. I think CC and CSP are best used in conjunction of your long term positions to squeeze a little more out or collect more shares..get your average down etc, but wheeling for like income or whatever? Nah, just buy broad market covered call etf like XYLD or QYLD. It definitely can be a time bomb, CC and CSP can be somewhat dangerous especially CSP.

Weak-Friendship-6412

no, I have sold it yesterday in order to buy more Nvidia, dropped after a huge senseless speculation. If you need a high yield stock I can suggest you HSBC (on London Stock Exchange), Intesa Bank (on Milan). In addition there are some very interesting ETFs that distribute dividends (monthly or every 3/4 months). My favourites are: MLPD, QYLD, XYLE.

calphak

Thanks for sharing, hope you are recovered and well. I was looking at the phrase: > I was looking for a "safe" way to earn 10% on that, and found the XYLD/QYLD/RYLD family of ETFs that return about 10%/year doing a CC strategy on the major indices. So you never got into them in the end? Do you do any ETFs or mainly LEAPS on stocks? I'm currently only writing PUTs on stocks but looking to do PMCCs. Hence the question.

anon91318

Aim a little lower, put it into XYLG/QYLG/RYLG, get about 7% divis in the year while still maintaining exposure to upward movement on the big indexes. You would get around 1750 a month and your capital would still decently track the market. If you need income primarily do it with XYLD/QYLD/RYLD but know these good chance your capital slowly deteriorates 

nstdc1847

QYLD is a decaying stock. What you gain in Dividends, you lose in value of the stock.

St0nkLady

Thank you, fair point, I don't ever think of TSLA having a SAVA moment... but it could one day. I'll look into QYLD.

Sean_VasDeferens

Take the advice of those here and millions of other successful people, diversify. TSLA is a true cult stock. What happens if you wake up tomorrow to the news that Musk suddenly died overnight? There are various ways to accomplish your goal as some have mentioned. Covered call strategy on big stable companies is one way. See QYLD and how that fund is run as an example. QYLD pays out consistent high dividends, you may be able to do better than them by doing it yourself.

CnslrNachos

Depends on your market views, but JEPI/JEPQ/QYLD etc etc etc 

Winter_Proposal_6310

QQQ is also an option. Or if you want better divided ETF’s such as QYLD.

Perfect-Ad-8582

Checkout QYLD, it follows the Nasdaq and pays about 10% dividend yearly, and the payout is *monthly*. It uses a covered call strategy and is very affordable to buy. It won't fly like the Nasdaq does, but it is a slow and steady way to make money off the NQ.

cranticumar

The only time MYND they gave dividend is December 2023 and never before and never after. If you are looking for aggressive dividends, go for some actively managed ETFs JEPI (monthly dividends) JEPQ (monthly dividends) QDTE (weekly dividends) RYLD QYLD

Euphoric-Magazine300

That's a great story... The past five years... other than 2022 have been crazy. I'm up around 320% since then. Retirement also secured. Been selling for the past month and buying tbills, munis, HYSA, QYLD, SPYI, DIV and anything else that pays a solid divvy. I learned from 2022.

DougFord150

Thanks didn’t think about the civil judgement. I live in a country with a public system so it’s fine on the healthcare front. I wouldn’t be writing calls on ETFs. I would be buying covered call strategies like QYLD, which is very liquid. I would buy from 5-10 different providers. I could sell them at a loss if the market tanks, but why would I? The yield will be greater than my loan cost. If I really have to sell, than oh well. It’ll be a tax loss I can use for future capital gains and I have a separate profile that can be liquidated to cover part of the loan. Even in your scenario (which again I’m not doing) I could just let the ETFs be called away, so no loss if the strike is above the purchase price. Debt isn’t some boogie man.

DougFord150

Humour me if you don’t mind. In what situation could I default? If I my wife and lose our jobs? We’d get employment insurance to hold us over and I can sell the etfs to pay back the loan. Remember these are ETFS - like QYLD or JEPI, some of which have a 10% distribution. If the worst case scenario happens, my family will not keep asking for the money if I don’t have a job. I can use the distributions from the etfs to pay back the loan or just sell them. I can use the loss as tax benefit too. Lastly, loan interest is tax deductible. I really don’t want to give up my lifestyle now and would be super cash strapped if I used my salary for this.

sparky_roboto

I think that's the worst case scenario. I remember for a bit I was able to x5 QYLD so the return would be something like 20% anually instead of 12% they normally yield. You could see the fees go up really fast. Now that is not profitable anymore. I've got RKLB with x5. To give you an example, I have a buy from 1/08/24 at 5.2. The fees I've paid so far are 35% of the buy value but it's gone up 1950% since then so the fees have been totally worth it.

crazybutthole

There are lots of funds and ETFs that pay good dividends. If I were in your spot - I would mix it up .... Maybe xx% in JEPI xx% in JEPQ xx% in MAIN xx% in QYLD xx% in several (3-4? Or more) of those yield max ETFs. I am a big fan of diversification - even if you are going for yield - it's nice to have it spread around so if any fund drops a bit it doesn't seriously impact your wealth I have a subscription to a dividend expert - he recommends spreading your dividend portfolio to at least ten different ETFs or companies. (Since it's a paid subscription I won't go into much details. But it's been working for me.)

joholla8

Depends on the fund. Many attempt to always hit the same yield (like QYLD and JEPI), and will use ROC to achieve this if they have to. You need to read the prospectus. I’m sorry, you aren’t going to win this one kid.

Alternative-Neat1957

We are at that point. Retired early and beginning to migrate our Dividend Growth portfolio into a Dividend Income portfolio. Our dividends cover all of our major expenses and are increasing every year faster than inflation. I really like some CEFs like EOI and EOS over funds like QYLD and even JEPI. I also like some midstream MLPs and some Utility companies right now.

Alternative-Neat1957

One of the other things I do not like about QYLD is its NAV erosion. IMO there are some really good income funds out there that don’t have that kind of NAV erosion.

Key-Mark4536

We can see the same with similar funds that have longer timelines, like [QYLD](https://www.reddit.com/r/dividends/comments/1bqfa13/yall_know_covered_call_etfs_arent_dividends_right/). It’s a smoother ride because the premiums provides income in down and sideways markets. However they earn that income by selling away some of the upside. When the market surges they don’t get to keep most of that. 

zeppo_shemp

>If I am correct SPY has a like a 7%-8% return all time sort of but also not really. over the long-term, several decades, a 7-8% average after adjusting for inflation is probably reasonable. but that's not a guarantee. The S&P 500 averaged about 5.5%/year from 2000 to 2020, and closer to 1%/year from 2000-2012. >Wouldn’t this be higher than the growth and TTM combined SPY has? If so why wouldn’t everyone just invest in this and get 12% dividends a year? here's what you're missing: - SPYI's 12% yield is only partly dividends. dividends are essentially a form of profit sharing, and the S&P 500 current dividend yield is about 1.3%. if you bought something like SPYD, the highest-dividend stocks in the S&P 500, the yield is about 4%. - much of the 12% yield from SPYI is due to "covered calls", which is a complicated form of options where other investors pay you money for the option to buy the stocks you hold now. - this can generate a lot of income, and it works well if stocks are steady or going up. but if the stocks go down, you can be forced to sell at a loss to the people who hold the option contract. look up what happened to QYLD a few years ago, similar strategy and it hasn't recovered from the Covid crash.

Alive_Relationship93

Covered calls have been working for me for a while now. Mainly QYLD . Anyone here commenting about dividends risks didn't pay attention. Covered calls are not dividends. The main risk with Covered calls is missed upside. Diversification is another risk in that approach. I have less than 10% of my portfolio in covered calls. QYLD yield now is close to %12. Good luck.

Just_Candle_315

$70k-$90k is OK, but QYLD pays 10%+ that's what you need to do with $1M. You'll be riding in a caddy instead of a buick.

KNlCKS

QYLD

shaghaiex

Professionals use options totally different from "us" normal users. How i.e. a marketmaker hedges their stock positions with options, or how QYLD trades SPY options is really not relevant to me. I believe for the type of education you are looking for Tasty has lots, really lots, of good material.

Sensitive-Disk-9389

ETF examples (do your own research): JEPI QYLD IDV VYM Better to hold in an IRA to avoid dividend taxes.

2020ScatPack_

Personally in a quest to diversify my portfolio after retirement I experimented with a couple CC ETFs. Firstly QYLD. I assumed that with a near 12% yield that the core position would basically barcode or erode. The my surprise it’s actually up over 18% and not dripping the dividends it kicks out a nice cash flow actually.

CosmicSpiral

Let's take a stroll through the major indices and see what's occurring mechanically under the hood. * This week is options expiration week. The S&P's major gamma level is at 5800 with the second highest peak at 5750 and the third at 5850. This gives you a decent idea where the support and resistance levels will be. With the majority of VIX options sitting between 19-21, expect volatility to remain sticky. * The Global X Nasdaq 100 Covered Call ETF (QYLD) writes a covered call every month. This month's option, totaling $8 billion in delta with a strike at 19725, will have to be bought back on Thursday before it expires (and is subsequently resold) on Friday. If you see the Nasdaq going up on Thursday and/or down on Friday, it will partially be a mechanical quirk stemming from this option trade. * I've spoken before about low interaction volume in SPY/NDX/IWM as well as individual stocks. Normally this is part of August-October seasonality and an important precursor to November-January: it shakes out the weak hands and profit takers at low expense (around -1% to 3%) so the market can rise in conjunction with the holiday seasons. What happens when the market rises on poor liquidity? Well, you get a rising wedge pattern in the S&P - traditionally bearish - reinforced by a number of divergences. These include a collapse in volume-weighted money flow, Chaikin money flow being flat, A/D ratio struggling to climb, and stochastics being extremely volatile. The jumps in price last week were spurred by Nvidia's AI summit and dismal Conference Board numbers, the latter acting as "bad news is good news" for a 50 bp cut at the next FOMC meeting. There's a high chance we see a major pullback this week or next. Just like the August JOLTS and Japanese interest rate news, I expect some piece of news will be the catalyst for people to take profits *en masse*. The news in itself won't matter, only how it affects aggregate investor psychology. * Arguably IWM will take it even worse as the supporting technicals are worse. * I read the Saturday transcript by China's finance minister and I'm fading the China rally. Not because I have faith or lack of it in the CCP, but that investor confidence won't survive the dearth of details regarding propping up the equity markets. * The credit markets are not signaling a recession anytime soon. Corporate balance sheets are good and [lending standards are not tightening](https://fred.stlouisfed.org/series/DRTSCILM), which has presaged all historical recessions. As a bear speaking to other bears, calm down about a putative collapse. If you want hedge protection against drawdowns, look into the distressed bond market.

Z_BabbleBlox

QYLD, RYLD, SPY, KO, SHEL, etc..

1GoofyGuy

I have $10k invested in QYLD. It pays me just over $100 a month. Understand that it is NOT guaranteed and the principle can go to nothing and all the risk involved with stocks and covered call ETF's and market fluctuations and all the normal buyer beware market crash warnings.... $100k will get you $1,000 a month, in perpetuity theoretically any good HYSA is going to get you close to 5% return and will be FDIC insured up to $250k

imthefrizzlefry

$100K invested in QYLD will pay more than $800 a month in dividends. So, you can get $500/month after taxes...

Just_Candle_315

QYLD and IEP and turn on the drip

Seence

Mostly small caps. I only keep 8-12 different stocks at a time. I have my broad market ETF as half my portfolio, at all times, and the rest is in aggressive growth and cyclical commodities. It works for me. Not to discount dividend stocks to anyone that likes that strategy. I do have QYLD in a roth, because I like compounding and use covered calls elsewhere because I like them. Its just not an efficient strategy to have too many dividend payers in a taxable account. Just to be clear, there's nothing wrong with anyone doing that though.

HIKEROBBY

Thoughts for a new investor: So I've read the personal finance wiki and flow chart, which I find to be very good. [https://www.reddit.com/r/personalfinance/wiki/commontopics/](https://www.reddit.com/r/personalfinance/wiki/commontopics/) As a 40yo newish investor, generally saving for retirement and wealth, w a high risk tolerance, I have made some minor mistakes, I am curious how others feel... I lost a lot of money buying Redfin at its peak, palladium, a clean energy ETF ICLN, and Gigacloud. I now realize buying individual stocks is not a game and getting stupid stock picks from motley fool or whoever else just makes me a fool. Only market ETFs for me from here on out. Other learning recently: I bought some three month CDs as an Emergency Fund when they mature. I also bought some one month auto-rolling treasury bills. But I am now realizing that both of those essentially could have been replicated by a MMA like my core position SPAXX or the safety of a Bond ETF like FXNAX or BND. Why do people even invest in T-Bills if MMAs are invested in the same thing anyway? Other thoughts... I once thought I would play around with options trading but then discovered there are ETFs that do the same thing for me, run by experts like IYLD JEPI JEPQ QYLD etc. (any recs?) Same thing with real estate investing, seems like certain REITs take away the need to be a landlord or buy homes as investments. It seems like there is there an ETF for essentially every financial product out there. So why do people trade options, buy houses, or T-bills? Any advice to make things easier than buying random CDs and T-bills? Just stick it in a MMA? And follow the boggleheads advice about basic 4-fund portfolios? Should I even buy a home or just rent and throw it into the market? That's a lot of questions but I'm curious about others perspectives.

Diamondkingloud

$QYLD it says 11% but it doesn't feel like 11% dividend yield

Eruysad

Me personally I'd split between QYLD and AGNC and drip the dividends if you don't need the money now. Will set you up a nice passive income down the road.

CantaloupeWarm1524

You simply back test using income ETF such such as SVOL, QYLD, RYLD, QDTE or monthly dividend payers like O. Your plan works well, when stock goes sideways, looses when stocks fall (slightly set off by the premium collected) and limited upside during bull runs.

Just_Candle_315

QYLD or IEP are my answer every time i see this question raised 20 times a day.

Prize_Status_3585

QYLD pays about 10% a year. Are you somehow claiming it's 42%? How are you this badly wrong?