QYLD: Consider JEPQ As An Alternative
The QYLD needs to re-invest excess premiums into the fund to cover situations where the written call options expire 'in-the-money'. For example, consider a month where the QYLD ETF wrote calls on the Nasdaq 100 Index with 17,000 strike in exchange for $300 in premiums. If the Nasdaq 100 Index is at 17,300 when the option expires, then the QYLD must pay out $300 to settle the difference. In this example, the QYLD would have paid $150 in distributions and $300 to settle the options, so the net asset value of the