All things STOCKS

#10,052
#10,052
Velo Vol said:
I didn't realize dog buying was such a big thing.

Anyone ever buy these covered call ETFs? What would be a bad market scenario for owning them (besides the obvious potential to miss out on growth)?

QYLD Isn't Performing As Well As XYLD And RYLD (NASDAQ:QYLD) | Seeking Alpha
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You get the stock called away from you if the market goes higher (missing out on gains). And of course if the stock gets crushed, you get your premiums but still lose money on the stock going lower (in the event of a large decline, your gains from the premiums aren't going to offset your loss from holding the stock).
 
#10,053
#10,053
05_never_again said:
ARKK has a pretty big air pocket down to about $50, it looks like...

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Yeah I saw a few days ago a guy I'm subscribed to targeting $55. I think there's value in their top holdings to I'm just going to ride it out. If it gets back down below $60 I may go in heavy.
 
#10,054
#10,054
Velo Vol said:
I didn't realize dog buying was such a big thing.

Anyone ever buy these covered call ETFs? What would be a bad market scenario for owning them (besides the obvious potential to miss out on growth)?

QYLD Isn't Performing As Well As XYLD And RYLD (NASDAQ:QYLD) | Seeking Alpha
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The tax treatment might be really bad. I don’t know if payouts are treated as cap gains/losses and dividends or if there is a third category of payouts. The proceeds from the call selling might could be taxed at ordinary rates. But these are ETFs rather than conventional mutual funds. This is why we have tax accountants and tax attorneys, kids.

Because of the distributions, it might be desirable to hold within a retirement account. BUT when the fund tanks there is no tax advantage in taking those losses when wrapped inside of an IRA.
 
#10,055
#10,055
05_never_again said:
You get the stock called away from you if the market goes higher (missing out on gains). And of course if the stock gets crushed, you get your premiums but still lose money on the stock going lower (in the event of a large decline, your gains from the premiums aren't going to offset your loss from holding the stock).
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Yes, there's the basic stock/NAV risk.

But what index conditions are specifically bad for a covered call model these use to generate dividends? A rising one with high volatility?

If you're not expecting another 20% year in the market, an 8% to 12% yield isn't bad.
 
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#10,056
#10,056
Thunder Good-Oil said:
The tax treatment might be really bad. I don’t know if payouts are treated as cap gains/losses and dividends or if there is a third category of payouts. The proceeds from the call selling might could be taxed at ordinary rates. But these are ETFs rather than conventional mutual funds. This is why we have tax accountants and tax attorneys, kids.

Because of the distributions, it might be desirable to hold within a retirement account. BUT when the fund tanks there is no tax advantage in taking those losses when wrapped inside of an IRA.
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Obviously better to do in the tax-free account.

I glanced at a couple of them last night and part of their Q4 2021 dividends were short-term capital gains. Haven't dug deeper into it yet.
 
#10,057
#10,057
Personally seeing how Biden is weaponizing the IRS. Got a fairly contentious audit on the valuation of privately held company stock into a IRA.
 
#10,058
#10,058
Thunder Good-Oil said:
There might be another strategy to buy the 5 worst from the previous year. The Dogs are actually the 10 highest yielding names. It’s a strategy that’s been around for about 30 years.
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The Motley Fool built their name on the Foolish Four strategy which departed from an equal weighting strategy to allocating 40% (iirc) to the lowest priced of the top 4 dogs.

They walked it back years later but had sold enough books to build their brand by then.
 
#10,059
#10,059
Velo Vol said:
Yes, there's the basic stock/NAV risk.

But what index conditions are specifically bad for a covered call model these use to generate dividends? A rising one with high volatility?

If you're not expecting another 20% year in the market, an 8% to 12% yield isn't bad.
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Relative to the benchmark, it probably does the worst in a fairly strong bull market, yes.
 
#10,061
#10,061
Velo Vol said:
I didn't realize dog buying was such a big thing.

Anyone ever buy these covered call ETFs? What would be a bad market scenario for owning them (besides the obvious potential to miss out on growth)?

QYLD Isn't Performing As Well As XYLD And RYLD (NASDAQ:QYLD) | Seeking Alpha
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The risk, like a lot of yield strategy, is that you lag the total return of the S&P500. That's a pretty limited risk, but you also will get all the drawdown of a 100% equity position. You'll sometimes talk to a dumb person who says "look at this great strategy that is literally free money!" but the truth is, all strategies are arbitraged by brilliant professionals and they all turn out accordingly. It is what it is.

The history of these funds is available, and also CBOE has a bunch of covered call strategy indices that you can also look at. Go to CBOE.com/usindices and check the "CBOE benchmark strategies" box. Reading about the rules used in each strategy is very helpful.

I have noticed that when people conclude something is "literally free money" then you don't really ever change their minds.
 
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#10,062
#10,062
Go aeiou said:
No doubt derserved.;)

How did it turn out?
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We did two things they don't like. Contributed privately held stock and backdoor Roth IRA'ed it (although both are completely legal)

Audit still going on. Our methodology for valuing the stock contributed to the IRA in question was the most recent valuation from any P/E Funding rounds. The IRS agent is trying to disregard statute of limitations (and what they did on a prior audit where they agreed with the P/E Funding methodology).

Issue working against us is that the privately held stock got bought out in 2021 at a much higher valuation than prior P/E funding rounds.
 
#10,063
#10,063
Does anyone use Fidelity?

It told me I bought some stock. I didn't remember when I might have made the order, so I want to view my order history (what date, order specifics).

For some reason I can't find this.
 
#10,064
#10,064
I do. I get “trade confirmation” emails. If you log on and look at your orders, there are three tabs; active, pending, and historical.
 
#10,066
#10,066
Velo Vol said:
Does anyone use Fidelity?

It told me I bought some stock. I didn't remember when I might have made the order, so I want to view my order history (what date, order specifics).

For some reason I can't find this.
Click to expand...

On the app:
Transact
Activity and Status
View Account Activity
 
#10,067
#10,067
Velo Vol said:
Does anyone use Fidelity?

It told me I bought some stock. I didn't remember when I might have made the order, so I want to view my order history (what date, order specifics).

For some reason I can't find this.
Click to expand...
I've used Fidelity for the last 15+ years.

Order history is quite easy to find
 
#10,070
#10,070
YankeeVol said:
Is he using the app?

I'm not the biggest fan of their app
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He didn’t say. I couldn’t find the history for at least 5 minutes the first time that I looked using the Fidelity app. Ameritrade also has their transaction history buried deep into the app’s click options. Morgan-Stanley’s app has some great features once you find them. Schwab’s works pretty well. Fidelity’s isn’t user friendly. Especially when setting up limit orders… the quotes suck. I usually open up Ameritrade or Schwab for the stock details while setting up orders in Fidelity.
 
#10,071
#10,071
Thunder Good-Oil said:
He didn’t say. I couldn’t find the history for at least 5 minutes the first time that I looked using the Fidelity app. Ameritrade also has their transaction history buried deep into the app’s click options. Morgan-Stanley’s app has some great features once you find them. Schwab’s works pretty well. Fidelity’s isn’t user friendly. Especially when setting up limit orders… the quotes suck. I usually open up Ameritrade or Schwab for the stock details while setting up orders in Fidelity.
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I only use Fidelity lol.
 
#10,073
#10,073
Three tabs; orders, history, pending. Click em. Right there in your picture. Not obvious it’s a tab.
 
#10,075
#10,075
I'm still not seeing where you can look back and see the past orders placed, executed or open. The trade confirmations don't indicate when you made the order.

I'm not sure if I still have any open ones left that I'm not able to find. Or if that was the last one.
 
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