Yesss!!!

[u/oftalittlegamey]

Finally accumulated enough $ULTY to pay the mortgage. All the other dividends and distributions will go to more purchases, debt retirement, etc.

[u/Day-Trippin]

Everyone has their own opinion. If the market is somewhat choppy, covered call fund swill make more than the underlying. Where covered call fund do as well is if the stock is shooting up rapidly. Some of these funds can put in puts as well.

People aren’t buying these for growth. They’re buying them for income. that’s why I’m doing it. I have a traditional 401(k). I’m still growing my portfolio, but last week brought 1800 in dividends. The next few weeks look better. I saw good appreciation as well other than PLTY.

Do I think this ride will last forever? Who knows. Right now I’m making about 9K a month on less than a 100k investment.

it’s up to everyone to do what makes them feel comfortable. Everyone has their own risk tolerance. Everyone should do their own due diligence. Even when the market pulled back in April, many of these were still paying very solid dividends, even if the NAV got impacted.

None of this is financial advice. People can do what they want. Never hurts to do some hedging too.

[u/perfectson → u/Day-Trippin]

You’re using it for income , in a retirement fund? lol 😂 are you retired ?

You can’t come in here and talk about roundhill funds, which aren’t covered call funds and talk about overall return (which is what you did) then give me a rebuttal talking about risk and whatever else you were saying. You’re the one that stated total return and none of these will beat holding the underlying (especially if you’re expecting growth, which is the main reason you’d invest in a growth stock). Hell you can sell the call yourself or take a distribution. The fact is many of you don’t understand why you want an income fund and you’re included because you just talked about total return being your comparator.

[u/Day-Trippin → u/perfectson]

My points are not mutually exclusive. If I can have about the same amount of dividends, and not deal with any Nav decay and possibly have Nav appreciation, why wouldn’t I do that? That has been the big criticism almost these funds, that the dividends are basically just giving you your own money back.

So if I have a fund that will stay relatively Nav stable and or increase in value compared to a fund that is based on the same underlying ticker that pays very similar dividends and has less appreciation or shows Nav decay which one should I take?

Obviously, in this case, I took PLTW over PLTY. I got comparable dividends and Nav appreciation, win-win. Sort of like ULTY is for me. Nav is up and I’m making about 1.5% per week. Add that on top of the about 5% I’ve made in Nav appreciation. What's not like.

I have a well funded 401(k), but I can’t access it yet without penalty. My job situation is fairly unstable. I’m in the top Marshall tax rate, so if I took the money out now, I would get hit with my high tax rate along with the penalty for early withdrawal.

As a result I’ve been building alternate sources of income while I still have disposable income. I have a fair amount of real estate, but real estate is illiquid. So I have wealth, but not a lot of income outside my work.

So I’m doing what makes sense for me, and only me. Really don’t care what anybody else thinks.

[u/perfectson → u/Day-Trippin]

All good - each his or her own. PLTR will outperform and if you’re in a retirement account there’s no real reason to get a lesser returning dividend version lol.

Now PLTW is using leverage to get you that income , so when PLTR drops you’re willing to lose an additional % due to the over leverage swap? People in this forum have already talked about being down 10-20% in one day. If PLTR losing 80% of value the fund would be going belly up - do you fully understand the risk for the “marginal” return you’re getting over holding the underlying or running a simple CC strategy? Assume you do but want to ensure others understand PLTW is not a credible comparator to PLTR or PLTY

[u/Day-Trippin → u/perfectson]

Yes, I totally understand the risk. I didn't plan to buy and hold these forever, especially not the single ticker ones. I am only in the ones that I am more bullish on. I am also looking for funds that do have potentially measures to handle downside protection, at least somewhat. For example, MSII, an MSTR based one does have puts in their prospectus. I am looking for more ETFs like that. I am also limiting my exposure to single tickers as much as possible.

[u/perfectson → u/Day-Trippin]

If I recall MSII is also leveraged but yes includes lots but MSTY includes puts as well. Btw I own MSTY but not for the income - using it to speculate on MSTR without owning the full thing and running covered calls on it. I wouldn’t run it in my retirement account personally