Stock Market: Good low volatility Covered Call ETF for income (symbol: QQQI)
I used to Sell Covered Calls to generate income. Sometimes I sold puts, did a "collar" etc. But it was time consuming. After researching Covered Call ETFs I decided QQQI was probably the best one for me. This one consists of the NASDAQ 100. (They do the selling for me, for which I pay a small fee).
Disadvanges of selling Covered Calls: If a stock "goes to the moon", those covered call stocks go up-- but less than the stocks themselves.(Covered Calls limit your potential upside).
Advantages of Selling Covered Calls: if the stock plummets, covered calls limit your downside. QQQI's direction is the same as the NASDAQ 100 but it moves (in either direction) less than the stocks themselves.
So why buy this one? Obviously this is not for someone who is a "growth" investor-- people buy it for the income.
What's the income?
A, It pays about 13%-14%/ year!
B. That is paid monthly. not quarterly.
Full disclosure: I own shares of QQQI.
Disclaimer: As with any investment you could lose your money!
"Past performance is no guarantee of future results".
S E E D E D C O N T E N T
Where might QQQI fit into an investment portfolio?
QQQI may be considered as an alternative or complement to existing core equity allocations that seeks to provide a tax efficient monthly income stream, while maintaining the opportunity for upside participation when market conditions warrant.
Past performance is no guarantee of future results.
The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost.
Red Box Rules
Indeed!
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Why did I seed this?
Well, for starters, I was starting to get bored with political discussions . . .
QQQI is currently "my single best idea". (Although it might not be right for everyone.)
The same company also has other offerings. For example the SPYI which is a covered call ETF which consists of S&P stocks (but pays a smaller dividend). I had some but sold it all and put the money into QQQI. I'm very bullish on tecnology....
If you want to buy some,for super returns, don't take the money out-- but rather "DRIP" it!
(Next ex-dividend is 8/21)
When I finally decided to post this I had a feeling that few people (if any) would be interested in this.
Turns out I was right, LOL!.
Still own it, still collecting good monthly income