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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Qone0 who wrote (59520)	5/10/2022 4:25:48 PM
From: Lee Lichterman III	1 Recommendation Recommended By ajtj99 Read Replies (1) \| Respond to of 97257

They track the indexes but get a little cushion from the unpaid profit on their calls as long as they're doing a good job. They can fall with the indexes though so I'd try to wait until we're near a bottom. I've played them in and out and I remember having XYLD when it was 49 I think. It's down around 46 now so they're not bullet proof. Still, they're down less than the indexes and you're getting the near 10% yield also. Just see my earlier post that there is blow up risk. If you remember knightytin, (Mike Burke) here on SI, he claims he was one of the first to use options in a fund to boost performance. Speaking of old members, anyone know what happened to Dennis Michael Patterson, William Huebe, Joan Graffius, Challo? I think Bill and Joan were in their 70s around Y2K so they might be gone though I didn't see them mentioned on the Ad Astra thread.

To: Qone0 who wrote (59520)	5/10/2022 4:27:22 PM
From: Sun Tzu	2 Recommendations Recommended By ajtj99 Qone0 Respond to of 97257

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.