Establishing a position in QYLD - how and why

QYLD is a covered call ETF. They write calls on stock they own to bring in more consistent and predictable income. They do this to generate returns via options, this is helpful if you don't know how or aren't comfortable writing calls on your stock. It would behoove you to establish small positions after they pay their dividend should you choose to buy in. This happens monthly so you'll have more opportunities down the road to add onto your position.

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Their top holdings are VERY concentrated in the FAANG stocks.


Does well in neutral markets.


QYLD pays a hefty dividend of 11.94% or about $2.70/share annually

Here is the wise way to buy this ETF. Wait until the dividend is paid (monthly in this case), and then spread out your buys across the next several days. There is no sure way to tell when the sellers will be done selling, so you want to be strategic - be careful of how long you wait because you may miss the dip all together.


Note: QQQ returns are significantly higher over the long term. QYLD is NOT in my opinion a buy and hold forever investment. Use is as a hedge if you want, but however you use it I hope that this short idea helps clarify how to maximize your return with QYLD.

QYLD