TLTW
iShares Trust - iShares 20+ Year Treasury Bond BuyWrite Strategy ETF
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What’s up with TLTW? It’s paid 15% in dividents while dropping about the same amoun.
TLT - Large institutional trades suggest a meaningful low is near.
Do we have an intelligent guess on blackrock buywrite bond ETFs will perform in long term?
Mentions
\> Is it even remotely possible to get 18.5%, $7,700 per month, with acceptable risk... without essentially paying yourself from your own funds Not using this portfolio. Using TLTW as an example from that portfolio. TLTW spent 2024 returning capital. It decreased in value by about 12.5% that year to return just slightly more than that. Not a good investment in my opinion. May it do better in the future? Maybe. But, there are better ways...
Its actually better to take an "opportunity loss" and take a week off enjoy life clear your head so you can sleep then research and plan your next trades. You can't control your emotions if you are stressed. Emotions make for bad trades. size your positions smaller if you feel too much pressure about losses. Learn to read options tables they will tell you the expected move / volatility of a stock. stable ? JNJ Exxon IBM pick a low spot. put your money in enable dividend re-investment and enjoy your life check them each year. Fast Money is both earned and lost. Slightly more risky but you could do TLTW, USOI, and PFFA basically bonds oil and preferred stocks. USOI NAV has taken a beating but that's because oil has been. that won't stay that way forever ... TLTW roughly 16% Dividend not much NAV volatility USOI has been sinking with the Price of OIL but might be a good time to get in about 17% dividend PFFA stable and a 8 percent dividend. 10 years from now with no stress you will be happy. Wait for the next big 10 or 20 percent market crash and buy SPY or VOO or QQQ set and forget.
Yup.. also called buy write funds. There are also downside protection funds that auto buy puts. Can yield 8-20+%, helping mitigate downsides, but one does have to watch for NAV erosion. IVVW, QYLD, JPEQ and so forth. Stuff like NUSI. One of my favorites lately is TLTW, a buy write on the TLT. Think about that one and how that works out. But beware of things like Yieldmax funds that have too high of a NAV erosion. They are almost reverse mortgages. But young folks should still more heavily weight on index funds, as growth over decades probably still far outweighs the buy writes/covered call/downside protection funds. But these are pretty good at generating yield over corporate bond funds.
Or just buy TLTW and let them do the work.
Bear markets are tricky because you get the random +5% day and think things are going to V, when they are just a bull trap. I can't see much to trade right now either. Keep in in cash (SGOV) or maybe TLTW while you wait
Thanks for the reply! So u think that it would be better to wait a little bit more and see what is going to happened?(I was also thinking of waiting for the nfp and see how the markets will react and after that make a decision). Also thanks for the TLTW tip)
Read up on the 4 year crypto cycle before you buy any. Historically, it doesn't V after the dump (i.e. crypto winter). I like TLTW instead of TLT for the 15% yield. I'm an older investor (Gen X, not boomer), and I've learned, as hard as it is to do, sometimes it's best to sit on your hands and wait it out. We always return to historical averages.
TLT and short QQQ. Metals have run-up too much already. TLTW has a nice divi so you get paid to wait, if your port is large enough for that to matter.
Market falling, yields dropping, and inflation doesn't seem to be as bad as predicted, is the trifecta for a TLT pump. I like TMF and TLTW (for fat divi)
$100k can go away with meme stocks really fast. If you want the thrill of investing in shooting star stocks and options, I'd do this as a matter of risk management: Invest most of the $100k (like $75k) into a combination of TLT, TLTW, IVVM, JPEQ, and something like bearish like ULTY or SQQQ (in small size). TLT invests in 20 year bonds and will likely rise a bit with interest rates dropping. The rest are buy write ETFs that invest in an underlying index and write covered calls against it to raise income. The idea is to have roughly blended 10-12% interest rate off that $75,000, giving you $7,500 of income each year and stabilizes your portfolio. Then take the remaining $25,000 and divide it into 5 separate $5k buckets for speculative investments, plus the $7,500 or so per year in ongoing funding from the interest if you blow the $25,000. With these 5x $5k buckets, take $3-4k of each and invest in something that strikes your fancy in the common stock. Then take the remaining $1-2k and try options on that ticker. DCA into this... don't buy it all at one time. You can use technical analysis or various TA experts to help determine decent entries. Also, I'd always try to keep at least one bucket free for an opportunity, which means taking some profits along the way to create new buckets. Don't feel the need to invest everything... cash can be very good. We don't know when this bull run will be over. But right now, with the interest rate cuts coming, we probably will be choppy but the bull run might not be over. As for what to invest into... right now, think about what might still run further with dropping interest rates. Think about what would become great businesses in the future versus what are flashes in the pan. And if it is a flash in the pan, that flash might be really profitable... but are you early? Or are you late? There's always going to be the next flash in the pan, don't get too FOMO about the ones you missed.
Income ETFS can be great if you understand covered calls and would just sell CCs yourself. I use JEPQ, TLTW for some specific purposes in the portfolio. But their total returns only perform well if you invest in them at right times which requires a lot of tracking. Anything MORE than that like Zero-day to expiration type ETFs will just blow you up in a downturn. It's no different than a "3x leveraged rebalanced daily". Does great in a flat to up market. Will absolutely go to minus 99.95% in a matter of weeks in a bear market.
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.
Id take about $ 400k and buy a combo of TLTW, JEPQ, and GDV. Wont get much as far as capital appreciation but you’ll see consistent monthly dividends. I’d put the rest in about 120 shares or SPY for capital growth and small dividends.
Agree on all points. Democrats also have power to play hardball and refuse to raise the debt ceiling. But of course they are spineless and bend the knee to Republican demands every single time. As it happens I now have half my entire portfolio in TLTW. I’m enjoying 15% yields while watching the underlying even tick up as the market falls. That’s my save haven for now. If conditions change the treasuries stop being perceived as the ideal safe haven I will jump out.
Prices will go up and yields will go down in a flight to safety as everyone panics and moves into safe haven assets. TLTW will make a fortune.
Right now my portfolio is TLTW, TLT and little bit of PFE.
TLTW.. you know how to make trading a boring activity.
Because its important for novice investors to understand this point. There have been post how novice investors want to do something really really dumb because they think MF=bad and ETF=GOOD There are post every year about people being like "I can only invest in MF in my 401k and I know mutual funds are bad, so would it be better just to forgo my 401k and 401k match and just invest in a taxable brokerage to invest in ETFs" Almost all 401k plans today will include great broad based mutual funds and if reddit keeps the narrative that ALL MF=BAD and ALL ETF = GOOD you can see how people may make very dumb decisions because people do not clarify they are really not talking about MF vs ETF they are really talking about Active vs Passive The fact that there is 1000s of low cost index MF proves this point. Also the fact that there are more an more exotic or active ETFs also prove this point I mean there are a whole slew of ETFs that under perform the market but have high dividends. JEPI , JEPQ, TLTW, the yield max ETFs I pretty sure they only exist because novice investors only look at the yield and not total return , so the narrative MF= Bad and ETF=GOOD is just a bad thing that reddit needs to stop doing How hard is it just to say active vs Passive?
Personally I don't think a second home is a good "investment" right now. You should consider it based on other reasons because the deportations which will occur and a few headwinds are likely to stagnate home prices relative to SPY. You're more likely to gain more on the SPY than in a house so I see very little downsides to a loan against equities to buy a house. Last I checked I think they wanted 110 months of mortgage in the form of equity to consider it. So if you bought a mortgage of $5,000 then they want $550,000 invested in the markets and they would consider it. My friend is pretty good at buying and selling residential and he just bought now so I often wonder if I'm too pessimistic or he finally is buying a top and gonna get "bogged down". If you're in a margin loan against $SPY I'd say an equity percentage of 70% is more than safe enough to weather anything. It'd take a greater than 50% draw down to impact your margin. The loans are higher cost so you need to solve that. Distant covered calls would pay most of it but cap upside. Short-credit puts is another way to capture premium in a bull market move, on large dips greater than 5% sell a bunch of those and make credit that way. This reduces your margin. Or you can move a large chunk of SPY into TLTW or JEPQ and get a near total return that is profitable and generate about 10% to 15% yield which will greatly offset a margin cost of \~11.5%
Since I basically run a business similar to what you're describing let me tell you how I generally run it. 1) You invest in a high beta return meaning you get an outsized return on that investment. Example buy CCJ at a bottom and then sell on a 40% gain. 2) You take that high beta return and invest it into a stable income ETF which simply means "unlock equity" which is JEPQ or TLTW for instance. Unlock equity refers to you put 10,000 in equity and at 0% it's locked in equity until you sell it. At 10% it's paying you 10% of that equity in income. If the equity has any growth to it (look at JEPQ) then it's stable and still paying you a portion each month. 3) Do this on margin so that you have a debit (debt amount). 4) Pay down the debt frequently whether by high beta sales or by dividends. 5) Keep the debt somewhere around 30% of equity. 6) Use short options as a form of credit to boost income returns. 7) Keep short options to around 30% of portfolio. That means 60% of your total equity is consumed in marginable shares and in "margin buying power". This structure is among the most stable I've found for managing large drawdowns (market crashes) and generating consistent income to constantly be paying down debt. I have \~65% of my total equity in gold which is extremely "stable" when bought at bear markets and so contributes a lot of stability to the portfolio. I get about 36% annualized returns for over a decade doing this kind of portfolio management. I'm sure there's caveats and nuances I haven't explained but that's the gist of the operation.
I do a modified version of TLTW / LQDW
Well that's where the kicker's going to be. Someone has to pay for the home somehow. If you can get a HELOC at 6% or less it might make sense to take it and just put it in JEPQ or TLTW or such and then pay the mortgage using the income from those specific investments. It's probably the "cheapest" option while retaining control over the asset.
The trade would look like BTC the VOO/call position entirely. Buy TLTW which sells the calls for you automatically. Sit on that while Feds cut rates more and use the proceeds to rebuild index positions on dips.
TLTW - $100,000 = approximately $4800 in distribution payments over the next 6 months. It will LIKELY preserve the total principal of $100,000+ because we are in a slightly "rate cut" environment. It therefore will likely do much better than the market at large for the next 6months to a year at these prices.
Take an amount off the table you desire and put it in TLTW. You will probably make another 10-20% return over the next year and will be paid about 10% annualized in monthly payments as income. $100,000 == about $10,000 a year in income alone to earn 10% or more on the underlying itself.
Keep the debt where it's at and go for building equity for now. You have so little equity that it's meaningless to "save a few bucks". Pay principal as you must but just let it linger for now. I'd just put $1000 a month into investing; I'd park money in JEPQ or TLTW for now. If I wanted some bigger move items I'd put money on SLV or RIOT which are in your price ranges for 100 shares. I'd sell covered calls on them while I wait for them to move. If they go up 10% I'd stop buying them (in your case) and look for other things. I'd always be stacking some JEPQ and TLTW whichever one looks like it's had the best pull back for the next 2 years.
JEPQ and TLTW. Start buying TLTW with this rebound in interest rates. Then when interest rates drop some more start buying JEPQ. A good split between them yields some strong income with good principal/total-returns.
Just a heads up, TLTW pays a monthly dividend that’s higher than TLT (it’s a fund that sells covered calls on TLT) and has performed roughly the same as TLT since it’s inception.
I'm in TLTW myself. Safe high yield in a slowly dropping interest rate environment means it's likely to do well for the next few years at least.
VIX futures but you're a bit late with that. You can still het into TLT or TLTW for example.
TL/DR I’ve been loading up on TLTW and other long term bonds, but for a much simpler and less wordy reason. We are likely at the top of this rate hike cycle so longer term bonds will likely not go much lower and they will gain in value when rates are cut. So I’m sitting on that distribution until rates are cut then I’ll sell for a gain then and move the money elsewhere
Better you sell 1\~3 weekly covered call yourself and do rollover in case your call ends up at ITM. TLTW is dumb monthly 2% call selling and with sudden move, you will miss most of the upside.
Agreed. Maybe in another 1-2 years of high interest rates and tech leading the way. Really not so broad of a rally but similar rate cut cycle to 1995-2000 is what I see. As a 30 y/o…I’m dca into TLTW at discount long term treasury prices. 19% dividends. Covered call fund on TLT.
Keep buying TLTW. 19% dividend with principle to appreciate during interest rate cutting cycle. Current market = buy the dip in bonds. Don’t chase stock market highs. Any equity gains are too risky/limited at this point in the run IMO.
One I’ve been buying is TLTW
in theory yes. there’s no doubt they’ll moon when rate cuts come but i think the main risk we run here is BRICS guys actually win and our treasuries become worth less than shit tickets. imo if you’re unsure and want to half ass it and grift some of the volatility, there’s a buy write version TLTW with juicy yields. other commentators correctly noted it’s probably better to just hold tlt directly as a port fixture than calls. but who am i to tell you what to do
someone smarter than me tell me why TLTW is a bad investment ? 15% seems to good to be true. assuming you want to put that sucker in a tax deferred account like 401K/IRA, etc?
For me was combination of O and MAIN plus with on TLT and covered call and Buywrite Strategy ETF(for me just buy them for enchaned the yield of cashflow,as combination of TLT and TLTW
Obligatory response since I haunt WSB forums: Tbh, 1,000,000 is a lot of love and blow. Life is short. Make it 🔥. Real response: Do NOT park it all in one investment. I personally like fixed income until rates come down. UBER has corporate bonds at 8% available until 2026, and there are some great instruments like TLT and TLTW you can buy. I also like REITs and, if memory serves, he could move some of that money into other real estate (like rental property) and lesson/eliminate his tax burden on capital gains. Obligatory: talk to a tax professional. IF YOU ARE INEXPERIENCED, I HIGHLY suggest talking to a professional wealth management service. I love my Edward Jones people, but they are expensive AF. Vanguard has good rates and I believe hands on management available. But, like, there are people whose entire careers revolve around not losing your money. You should talk to them.
Many Pension plans have been silently closing out of stock positions ENTIRELY and entering BOND ETF's. The outflow's and inflows are trackable if you know where to look. The YIELD's are still ass-backwards but as soon as general retail finally gets the bigger picture of where money is moving I expect short-time span bond yields to spike and longer dated treasury bond yields to drop like a rock. I think we are at a point where $TLT and $TLTW begin looking highly attractive again in the short-mid term. I won't be suprised if $TLT runs back to $150 by this time next year. That's just my 0.02 cents.
own a TON of TLTW for a year , (b/c) I see rate inflation go range up-dn-up-dn , (won't cut that soon) , choose TLTW rather than TLT a year ago. Have a big problem : it generates a lots of CASH dividends EVERY MONTH, 18% last year. Tax away at 24% on my Reg Account. Don't know what to do with all that CASH, just use it to buy TLT every month! Anyone have a better solutions? Will TLTW dividends ever will become "qualified dividends" and being taxed at 15%?
TLTW does 2% OTM Monthly. Given current vol, it won't fare well. It probably will miss upside vol, by a lot.
What's the ticker? not everything has options. Not financial advice but if I were you I'd look into $TLTW It's an ETF that sells covered calls on $TLT already; it generates a monthly dividend (1099-DIV) and it keeps up with the changes in rates such that if you bought at the highs last year, the dividends alone will mean you're still about +3% after bonds dropped hard. The idea is that you can let it ride paying a monthly income while you earn an average 12% - 20% per year in income and the value of bonds will remain stable. I like to sell covered calls on what I own but unless you're willing to actually be sold-out and assigned, which is totally likely, the strategy may sound "better" for you than it really is. I shorted $NVDA at $630 and I shorted $XLE just recently at $97. I actually sold covered calls on $XLE at \~90 but closed the trade at about $86 cost basis. The point is that selling a covered call is like a "secured short". You can't lose more than the strike if price keeps moving. But, imagine earning a nice income on $NVDA at $630 to only find out it moved to $1000 in that time frame. How do you "get back in" and safely? Instruments like $TLTW help you ignore that problem. You may or may not out perform the instrument in question; but you'll be comfortable with the results not having to be sold out. ------------------ $TLTW $O $JEPI These are some strong "income" stocks that are also pretty trustworthy and stable enough to enjoy as monthly income writers.
I’ve got 75% of my port in TLT. I didn’t even now TLTW existed until you mentioned it.
Because you should dump it in TLT instead. TLTW was the move the past couple of years
see it's all priced in with dividend stocks. TLTW dropped 20.69% Jan 6 to Jan 6. So you would have gained 192K but lost 206,900 in principal value. The idea is of course you wouldn't be using all that 192K per year and reinvest the excess in further TLTW or other things... but truly living off of dividend stocks kinda ignores the principal value loss. Someone did a good mathematical Covered Call ETF analysis in Options but I cannot find it yet.
I just want a million to put into TLTW and live off the 192k a year I would make off the dividend. Is that too much to ask? Full porting biotech Monday, fuk it
Here's 2 funds to also begin investing in at this stage of the downward-trending inflation rate: PDI, PIMCO's Dynamic Income Fund, a 14% dividend. TLTW, iShares 20+ Year Treasury Bond Buywrite Strategy ETF, a 19% dividend. The funds have monthly dividend payments. When equities aren't so pricey then start payments to JEPQ, JPMorgan Nasdaq Equity Premium Income ETF, a 9% dividend plus growth with equity returns.
People are not interested in getting dividends solidly. Maybe TLTW is not for quick cash gain. ​ https://preview.redd.it/7p3n437ejyic1.png?width=886&format=png&auto=webp&s=0d542fe70f1be27f0360066f998d82669ebc8fcc
Considering that SPX is at ATH maybe TLTW would be better suited as the rates will eventually get cut later this year or the next
I'm essentially in total agreement. I diversified between the 30 day treasury funds, CDs, actual Treasuries, ETFs like TLT and TLTW and I have been active in trimming and adding to my Bond ETF holdings since the massive drop they all had. The only negative to doing that is tax implications but nobody seems to mention Roth accounts which allow you to avoid the wash sale problems and also reduce cost basis while adding to your holdings. I put these funds in Roth accounts specifically for grinding down the cost basis when they all nose dived. I basically reduced the position on red days and added when it was rising. And since Roth is Tax advantaged the wash sales I accrued are a non issue and I'm already in the green by a pretty big margin. I saw a ton of capitulation posts a while back from people selling TLT due to losses but nobody ever seemed to mention that there are ways to avoid all of that.
When I got to $300k in assets is when I started feeling like my investments were doing some heavy lifting. At $300k a 10% return is $30k and that was about as much money as I could contribute in a year at the time. Now that I am over $1M it is insane. Making $100k+ in a year is pretty common and that is more than I ever made from my w2 income. My highest w2 income was $75k per year. Now here is the other thing about having assets. The more money you have the more money you can borrow and the cheaper the interest rate you pay. With $1M in assets you can go over to interactive brokers and borrow money at roughly 6% interest right now for a margin loan. So, what you do is you borrow say 10% of your portfolio which IMHO is very conservative. So that is $100k. Your interest rate is 6% per month. So what you do is you can be conservative and buy $100k of an ETF like PFFA which is an ETF of preferred stocks, which are quasi-bonds. With PFFA you make 9.45%. So, PFFA will pay for itself and give you an extra 3.45%. Also because these are preferred stocks the income is mostly going to be qualified dividends taxed at 15%. Anyway by the end of the year you own the $100k of PFFA free and clear and you probably made some extra profit off of it too. Your margin is back down to 0% and you can do it all over again next year... It doesn't have to be PFFA. That is just IMHO a pretty conservative option. You have tons of options. JEPI is 8.35%. JEPQ is 9.90%. JNK is 6.36%. SPYI is 11.94%. QYLD is 11.68%. TLTW is 19.79%. SVOL is 16.18%. Blah blah blah blah... tons of options all which will cover the margin loan rate. So at the end of the year you now have an extra $100k in assets. You can borrow up to 50% on a margin loan but I wouldn't recommend it. IMHO using 10% is very conservative and extremely unlikely to get you into a margin call. Even if your assets fall by 50% then you are still only using 20% margin, and you can always sell some of the assets back to reduce your leverage back to 10% or whatever. There is no need to sell though as what you purchased with the margin debt is going to cash flow enough to pay itself off and then some.
Etfs, bonds, mutual funds... Here are my favs: JEPI JEPQ TLTW FAGIX PDI LTC OXLC ARCC KBWD HYT I believe these are all monthly. There are more but I'm tired. Have fun!
What’s your view on TLTW? Seems a no brainer to me with virtually no downside, a capped upside but 17% dividend which if I’m getting I don’t care about a capped upside.
Ouch.. I’ve got a few million to invest. I was wondering if there was a trade I could use but don’t really want to gamble the house. I’ll just buy TLT and TLTW.
TLTW will go up if rates go down like they should. And GEO should double
Possibly, I've held it for a while, so I'm up over 5% and collecting big monthly dividends. If you are not sure where the market is headed and want a high dividend stock in your portfolio instead of growth, I'd be looking at it, SVOL (which doesn't really go up and down but has an even higher dividend) and maybe TLTW. I have sizable portions of all 3 and reinvest the monthly dividends in stocks.
Don't buy individual stock. Try to stick to high dividend ETFs (JEPI, JEPQ, TLTW, etc)!
😅 Just buy dividend ETF for 80% of your portfolio. JEPI: 9% JEPQ: 12% TLTW:17% Get high dividend and interest. For 20%, do whatever you want.
I invest in income stocks only, so I’d buy e shares of TLTW, and put the rest into SACH. (I’m old, and we have other growth investments in separate accounts).
JEPI, JEPQ, SPYI, TLTW and thank me later
if you are trying to accumulate dividend stocks/ETF's to snowball over the next 20 years i would suggest JEPI, JEPQ, SPYI, CVX, O, VZ, TLTW... SET all to DRIP and walk away. another good source of income is Wheel strat on AMZN, buy 400 shares and wheel 3 contracts
Easy, put 50k each into SPYI, JEPI, JEPQ, TLTW and enjoy your monthly paychecks for life
TLTW -- 19% dividend and get it forever.
Generate income : There are many options to get monthly income with your capital. I have this in my portfolio and am still buying more every chance. TSLY OARK TLTW XOMO There are low and high all the time .
I'm familiar with TLTW, it's fundamentally different than any of the strategies discussed here. It's a fund that sells monthly at the money calls against TLT for the purpose of generating income for it's owners. These strats are trying to take advantage of flat/decreasing rates.
Have you looked at TLTW? It's an ETF that does exactly what you're doing in a systematic way and has outperformed TLT this year IIRC
If rates go to 6.5% TLT will drop like a rock in value. You want rates to go down long term if you want TLT and TLTW to go up in price
I bought into TLTW at what I thought was a good time and it just *kept dropping* I’ve been dripping the dividend and buying the dip whenever it was down over 10-15%. I’m just about to break even on it after last week’s rally so I’m assuming it’ll crash this coming week 😂
As for how, I’m going very simple. TLT and VBLAX. I know I could buy direct for cheaper but I’m going to keep this one simple. I may do a super small portion of TLTW.
Yes. TLTW should work a little better than TLT if interest rates are raising as it is selling calls to generate premium. Same in a sideways market.
if i ran into that, here is what i would do, my shopping list set up a few CD ladders and Bond ladders w/ .5 M looking at longer durations .5 M in to the following stocks and ETFs: JEPI, JEPQ, SPYI, TLTW, CVX, MO, O, VZ, AMZN, QQQ I would sell Covered calls on CVX, AMZN and QQQ for extra income use the remaining to get outta debt, go on vacation and enjoy life for a bit. probably drop down to part time work and live off dividends. ​ good luck homie, if you are smart you shouldn't have to work ever again.
Don't buy the 2x left. They have a phenomen called volality decay. You are going to get chopped up. You should buy TLT and you can even look at TLTW.
start with 400 shares of SPY, 200 shares of AMZN and sell Covered calls on half the positions weekly, or daily, for income. Add to that some passive ETFs and monthly/quarterly high dividend payers: JEPI, JEPQ, TLTW, SPYI, O, ARCC, CVX ​ good luck
JEPI, JEPQ, SPYI, TLTW, AGNC as holdings for monthly income Wheel the SPY
Probably TLTW for safety. Will make about $2-3k/month
I am slowly adding to Bond Write ETFs that write options on bond ETFS. TLTW for example. But I truly expect yields to continue higher. Maybe 6% 10Y is on the table so TLT and TLTW will continue lower. I’m just saving dry powder so when bonds do recover, there’s plenty of income to be made selling covered calls.
I am going to start scaling in but not with options. Going to buy monthly TLT and TLTW and build that position over the next 12-16 months. Get a good dividend every month to reinvest. Timing options is incredibly hard. I guess you could do the same for leaps and buy monthly for the next 12 months and see what happens. Going all in now just seems like a recipe for dissaster and Theta gang wins.
I was considering going TLTW because rates may remain at this level or higher for many years. You’ll still capture much of the upside as long as they cut rates slowly.
Sell CC out one month at 2.5% above cost basis. I'm looking to start DCA into TLT every month starting Oct. Might also do TLTW so I don't have to do the actual buy write
1% expense and 2% dividend? No, thanks. TLTW: 0.35% expense and 18% dividend.
Is TLTW safe? I am thinking to buy a lot of it.
I know nothing about option. I didn't learn it, intentionally. I own JEPQ, JEPI and TLTW, though.
TLT could still go down another 20%. Until it turns around, I'm in TLTW + 30% short TMF as a hedge. It hardly moves and I collect \~12% dividends annually, paid monthly.
I just started a position in TLTW (a TLT call-writing options ETF). If TLT chops around in this range for a while, this should hopefully perform well.
$TBIL, $TLTW are my choices now
Just buy TLTW and let the ETF do all the option writing
currently long shares of BRKB and TLTW currently long puts on TTD and JOBY let's ride
Effectively the same. The point is, TLT has been beaten down. Really a lot. Even if there is another rate hike at the end of the year, it probably won't affect TLT much. Within, oh... maybe the next year, the yield curve will correct itself and the inversion will go away. Long term yields will come up then. You buy/write at just above the current price to maximize the option profit. Take the dividend if it goes down and roll, or let it get called away if it goes up. It should net you a greater than 20% annual return, and while there is always some risk, the curve should correct if we go into recession or if we don't. I look at it as pretty safe if you don't need the fund for a year or so. I like the control of handling the options myself, but TLTW also.
A lot of those funds (JEPI, TLTW, etc) make heavy use of derivatives, meaning they are inherently volatile. They could do well in a crash, or they could do very poorly. I also wouldn’t be surprised if your commodity trend category is also riskier than you think. If you’re worried about a market crash, especially in one sector, I would just reduce your weights in that sector rather than trying weird high expense ratio funds. I’m also skeptical of the longevity of some of these funds. A lot of them seem to be kind of new, and if a fund hasn’t survived previous market crashes (like the financial crisis) I would be skeptical of it performing well in a crash.
My TLT, TLTW and TMF are rock... *hard*