ajtj's Post-Lobotomy Market Charts and Thoughts Message Board

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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts

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ajtj99

Qone0

To: Qone0 who wrote (59520)	5/10/2022 4:27:22 PM
From: Sun Tzu	2 Recommendations of 97272

Exactly! A couple of nuances: The fund buys each of the stocks in the index, then sells covered calls on the index. This is so they can avoid fees related to holding the index. Also, they liquidate their option position the day before expiry. So theoretically you have a one day close to open risk between the 3rd Thursday and Friday of the month. Global X has a family of these. There is for example a QYLG. It sells only half the options, so you get less dividends but have more capital gain upside.

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