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Strategies & Market Trends : Young and Older Folk Portfolio

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To: chowder who wrote (988)	7/14/2022 5:59:33 PM
From: chowder	2 Recommendations Recommended By peterad red cardinal Read Replies (1) of 21869

Re: YOUNG FOLK PORTFOLIO ... Buys The objective with today's buys is to build the dividend cash flow to help increase the amount of cash that can be reinvested in the future. I want to be sure that all positions with a 4%+ yield are at least full sized positions. A full position in this portfolio currently is $4,000. Today I added to: RYLD yield 11.67% XYLD yield 11.77%. Today's addition brings both of the ETF's up close to $3K each making them a 3/4 sized position. I will keep adding to them until they achieve a $4K position size. These two funds sell index options with XYLD representing the S&P 500 and RYLD representing the Russell 2000. By selling index options against 100% of their total portfolio value 'at-the-money', this makes XYLD and RYLD not only very defensive, but able to pass on superior yields like CEFs. 'At-the-money' means XYLD and RYLD sell index options against 100% of their portfolio value at whatever the current strike price of the S&P 500 for XYLD and the Russell 2000 for RYLD is. That brings in a huge amount of option premium which will essentially be kept if the markets don't advance past those strike prices by August 19th. That's where both funds get their income to pass on as distributions to shareholders. Source: Doug Albo An important note: These are not assets that will generate a lot of capital gains, they are income based assets that are defensive in nature during bearish market conditions. They give up a lot of upside in order to protect the downside while at the same time paying out very handsome distribution yields. It's the cash I want from these assets for purchase later into growth assets when growth comes back in favor.

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