Hi tiger brothers and sisters, congrats to those who have made money recently!!!
We know that the market is on a uptrend recently as the CPI dropped to 8.5% from 9.1% in the previous month. Although that's a good sign but we must admit that inflation is still high and most interest hikes will be coming!!
How do you protect your capital in a highly volatile market and yet still generate a steady stream of income monthly???
You can try covered call option strategy. Covered calls are an excellent form of insurance against volatility in the markets. When an investor with a long position in a particular asset sells a call option for that asset, generating a profit in the process, it is considered a covered call. It's an option strategy that offers limited return for limited risk. Or u can put it as lower risk, lower gain.
Sounds too complicated for you?? Dont worry, let the experts do it for you!! Covered call ETFs seek to generate income through covered call writing, which historically produces higher yields in periods of volatility and generates monthly distributions!!
$Global X Russell 2000 Covered Call ETF(RYLD)$($2.87, 13.5% dividend)
$NASDAQ 100 Covered Call ETF(QYLD)$($2.1708 dividend, ~ 11.7% dividend)
$Global X S&P 500 Covered Call ETF(XYLD)$($4.383, ~9.9% dividend)
If you think the market is going to trade sideways (within a fairly stable range) over the next few months, covered call ETFs may be a good option for you! Good capital protection while generating good monthly dividend until you find better opportunity to buy good stocks! Will you add this to your watchlist? Do let me know your opinion!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Thanks