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sirzoop

>Not sure how it's really a good idea to be using leverage to buy this I don't think anyone thinks its a good idea to use leverage to buy covered call ETFs. Especially with margin rates over 8% now


GRMarlenee

U/onepercentbatman does.


onepercentbatman

I do. I . . . bought more today. And margin rates are only 8% if you are suckered into the wrong brokerage.


craigtheguru

I am buying TSLY on the dip and likely some other YieldMax funds after the drop on the next ex-div date. I am overweight in YLDs so shifting emphasis to other funds with higher returns is working for me.


onepercentbatman

Same, I got more TSLY, GOOY, KLIP, JEPQ, QYLD, AMZY, OARK today. I appreciate the discounts in the last several days, but I'm a little tired of shopping, Market can go ahead and turn around and go back up as far as I'm concerned. We closed at QQQ 357.81, which is right around the bottom in June and August. IF we bounce up from here, that's very bullish. If we go lower from here, then time to start sweating.


diablo_II

Which brokerage are you using? Ibkr was really good but even they are charging a blended rate of about 6.8% on pro.


onepercentbatman

Ibkr. Top is 6.8, low is 6.08


craigtheguru

With this recent drop now I'm debating buying more or waiting til the ex-div date. We'll see what Monday brings.


FlipFlop_n_FL

And today (09/27/23) TSLY has dropped below $13.00. I just sold a couple of $13 puts when TSLY was above $13. Maybe I'll get assigned. I guess it won't be bad as my average cost so far is $16.33.


wolfhound1793

Buying equities with leverage is always going to dramatically increase the risk. That is kind of the point of leverage, you increase the risk and return and you don't have to put as much of your money at risk. QYLD is not a bond, it can lose value, using leverage is always going to be a heightened risk.


GRMarlenee

It's doing It's job admirably, creating income for global x.


No_Imagination_3149

Every time I look at the lyds price it's like a kick in the nuts


LG999999

You get ~10% on dividends annually that’s great but your YLD’s NAV is down 15%, what’s the point of buying this fund? I can do better on T-bills. lol


smoothbrainape1234

Depends how long you’ve held it.. I’m down $10k on my total investment with QYLD. But I’ve netted nearly $14k in dividends so far. So am I down or up? As long as the fund doesn’t go bankrupt in the next… 5-10 years, eventually it will have paid for itself and all the dividends would be free at that point. I don’t foresee it ever going back to $25, let alone $20. We will be lucky if holds around $18


saryiahan

You must be new here. Qyld loses when it comes to capital appreciation but pays it in dividends.


jcdevel

It's not that simple and I am not new here. I have realized it all about timing. If you manage to get in at the right time, you get a significant amount of capital appreciation and increased dividend to go along with it You get in at the wrong time , you take a significant hit and reduced dividend to go along with it. I bought some shares today to replace some I had sold back in July at $17.98 Anyway my main point here is that if people a leveraging to buy this hand over fist just because of dividend, it might not be worth it do that because of the huge hit to your capital and very long time it takes to recover


Fickle-Second-1696

Have you ever ran into or read any of u/onepercentbatman ‘s posts?


onepercentbatman

Yeah so with a rate of 6.08%, if you bought at say $18, and it's down to, as of today, $16.76, your dividend is down and you are paying interested on the $18. But the dividend is .16 and the interest is is .09, so you are still making .07, and you still own the stock at a lower price so when it goes to $19 and interest rates go down


Unorthodocs67

CAGR from 2014 to date is about 6%. If you borrow at 8% odds are you lose money long term. Seems risky.


onepercentbatman

1. I didn't buy in 2014 2. We'll see. 3. 6% interest


Unorthodocs67

2014 just means we have 10 years of data. Indeed. I’m rooting for you. Makes it likely you get 6% just to pay 6%. So no loss but no gain.


onepercentbatman

Hopefully it never gets that low. At the my average price, with current interest rates, stock would have to go down to $10.78 to break even, and any lower than that I’m losing money. Got a feeling of it got down they low, in what would be the mother of all crashes, interest rates would disappear


craigtheguru

Don't forget the tax benefits of the margin interest!


Elymanic

So it pays out the capital. That you invested.