TSLY, APLY

[NitroZ7]

These look too good to be true but I decided to throw a small amount into APLY. It is a synthetic position in Apple with Leaps they sell covered calls on. I have a long Apple position in this account but don't really want to write covered calls on it. So I figured I could by this and just let the ETF do the call writing on the synthetic position. This will probably go to hell in a hand basket but figured with a small amount of money I would give it a whirl. Has anybody else looked at these?

[boneil]

I'm always hesitant about new things like this cause I know what I don't know. Years from now what will these look like? Does anybody really know?

With these covered call etfs, what happens when an event happens and the underlying stock goes parabolic? Hard to imagine that AAPL goes parabolic, but TSLA could.

Fortunately by the time I'm ready to really invest in income products, there will be several years of history with these products. I do have a small position in JEPQ for education purposes. I want to see how it performs in different market environments and what are the tax affects from one year to the next. I might do the same for TSLY.

[NitroZ7]

I'm always hesitant about new things like this cause I know what I don't know. Years from now what will these look like? Does anybody really know?

With these covered call etfs, what happens when an event happens and the underlying stock goes parabolic? Hard to imagine that AAPL goes parabolic, but TSLA could.

Fortunately by the time I'm ready to really invest in income products, there will be several years of history with these products. I do have a small position in JEPQ for education purposes. I want to see how it performs in different market environments and what are the tax affects from one year to the next. I might do the same for TSLY.

Yeah I definitely picked the Apple one instead of the TSLA one because Apple does not have the big moves like TSLA. The distribution is less because of the lower volatility but I felt better trading off a higher distribution for lower volatility. I only put a small amount in to sort of see how it performs. I have JEPI and JEPQ as well and those have seemed to performed as advertised.

[Charles Prestridge]

Thanks for sharing. I will have to research. As I get closer to retirement, possible income streams become more important.

[g2072]

I picked up a few shares of TSLY when I bought back into TSLA just in time to watch it go down. I'm adding a few shares of TSLA as it falls to help my average. Bought the TSLY just to watch. TSLY paid .83 a share last month. I really don't see how that can continue but it did help negate the price drop. I'm not going to throw a lot of money at it but will spread the dividends out across my other stuff.