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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Lee Lichterman III

To: Lee Lichterman III who wrote (70398)	9/27/2022 6:20:24 PM
From: edward miller	2 Recommendations Read Replies (3) of 97601

Might have been Sun Tzu but you were part of the conversation. I think you missed the point, so I will do the math, simplified. These are not my actual holdings but give the ratios. I was responding to catou1 IIRC. Buy 10K of QYLD. Monthly dividends vary some but I will use Yahoo yield of 12.2% since that's about right. Buy 1200 SQQQ. The hedge isn't perfect, but since I first bought QYLD that's close to the right number, give or take about 100 shares. At today's prices you have $150,920 in QYLD, hedged with $68,316 of SQQQ. Total investment is $219,236 so the net yield is reduced to 68.8% of 12.2 = 8.39% net yield. Not back in my opinion. That said, I will point out that SQQQ versus QYLD doesn't always track the same. As is often said, YMMV. So far I am happy with the results in that I get dividends that more than cover my required IRA distributions, so my total assets aren't shrinking while I feel that I don't have the level of risk which I sense in buying REITs or other instruments for income. I do also add EPV/TZA/SPXS at times since we are in a bear market.

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