Q: The covered call strategies I have seen discussed to date are exclusively equity-oriented (e.g. QYLD, XYLD, RYLD, etc.) What do you think of the potential of TLTW assuming the relative volatility of the bond market stays high-ish?
Do you have alternatives to TLTW with a longer track record?
Q: JEPQ uses ELNs(up to 20%) in order to generate covered calls instead of writing covered calls on its assets that would limit upside potential.This means that JEPQ has a capital appreciation potential,and at the same time offers significant monthly income.I suppose though that QYLD will be less volatile than JEPQ.If I wish to take avantage of a future NASDAQ recovery and also obtain a revenue,JEPQ seems to me more interesting than QYLD .To summarize my question : is my impression OK ,and are there any avantages to hold QYLD instead of JEPQ ,(except of the higher yield ?
Read Answer Asked by Jean-Yves on February 06, 2023Q: QYLD writes calls options ATM on "100% of assets" wich means on all NASDAQ index or all assets ? I seems to me impossible and much to risky to sell call options on 100% of the NAV of the fund( since they could have to sell all of the fund eventually ..) but it would be logical for me to sell call options on a certain % of all the NASDAQ index (a % on 100% of NASDAQ 100 stocks)! I read that this % was 2%,but I found nothing about this point on global X website except this "calls on 100% of assets"...Did I misunderstand the whole principle of this fund ? thanks for explanations
Read Answer Asked by Jean-Yves on December 31, 2022