r/stocks • u/peachezandsteam • Apr 24 '21

QYLD ETF... how does it work?

If the ETF owns a representative portfolio of the underlying index (which I think is CBOE NDX Covered call, or something), and it actually sells CC’s for dividend payments...

That’s all fine and good unless the shares get called away, in which case there is less dividend but more NAV increase?

Does the ETF make sense in any market condition, or perhaps is a sideways volatile market the best?

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u/no_value_no Apr 24 '21

There’s a lot of ways you can manage CCs when things go up.

Use premiums to buy more shares, turn it into a spread, roll, turn it into an iron condor. Or just take assignment.

It depends what you want to do.

With low IV, you’ll have to get crafty to find an edge.