Revealing the IWMI Strategy (Rotation to Value)

[@armchairincomechannel]

Snowball Dividend Tracker (Create a Free Account, and the 10% Discount will appear under "Subscribe"): armchairincome.link/snow

[@Seoulsearch616]

I always appreciate that your interviews are thorough, informative, and always throw in a little bit of humor! 😂👍🏼

[@armchairincomechannel]

Thanks for your feedback. I'm glad you're smelling what I'm cooking. Not easy to find humor in covered call index funds but I'll keep trying ;)

[@DividendDork]

@@armchairincomechannelwhat are you talking about?! You created a whole new category of humor - income humor! Another great interview, thank you!

[@DividendDork]

P.S. i’m making a big move into IWMI this week.

[@Michael-nq4ek]

Best Chanel on KZbin for income investors. Thanks

[@armchairincomechannel]

I appreciate that feedback, thank you! I think you just made my day :)

[@mengkham]

Have you heard of Unconventional Wealth Ideas? Should check him out for income investing.

[@Steverino70]

You made my day! I am pretty topped out with SPYI and QQQI. iWMI is exactly what i have been looking out for. The tax efficiency is the cherry on top!

[@armchairincomechannel]

Thanks for letting me know that :) Anytime I can make someone's day then it was worth the effort.

[@michaelhaidee]

Armchair Income is a sharp guy. Love the info and interviews. Probably the only income investor that actually understands options. Love Garret and NEOS and the way the funds are structured. Great place to park my money for income from my options trading. Looking forward to any new NEOS funds in the future.

[@armchairincomechannel]

Thanks for your feedback. My ego thanks you as well ;) I'm looking forward to future NEOS funds too; I'll probably be interested in at least some of them.

[@finwest]

Thanks for getting the details direct from the horse’s mouth, as they say. NEOS is good at explaining their products and I appreciate he’s agreeable to your interviews and fielding your probing questions. Helps a lot.

[@armchairincomechannel]

My pleasure and I'm sure the "horse" will be glad to read your feedback too :)

[@sdrs95a]

NEOS High Yield bond sounds great!

[@armchairincomechannel]

I'll be interested to see how that one works too :)

[@jamesleonard4713]

Just finished rotating out of RYLD and into IWMI about 2 weeks ago. Had previously moved from QYLD, into SPYI and FEPI, after your video on SPYI. Really enjoyed the video, thanks for the great work.

[@armchairincomechannel]

Thanks for your feedback. I'm glad the content was helpful :)

[@peoriaos6627]

Every time I see you interview this guy. I feel more confident about their products. I've already grabbed several hundred shares. Im happy so far. Another awesome video!

[@armchairincomechannel]

I like interviewing Garrett. He calmly answers any question I throw at him.

[@charlesbyrneShowComments4all]

Your interviews with Garrett make it easy to understand their methodology. And the overview of how they work is fleshed out warts and all. Thanks

[@edmitiu7383]

Clear usable info will be adding IWMI, TY

[@armchairincomechannel]

Glad to hear the interview was useful, thanks for letting me know :)

[@waltlowry4297]

Great timing, was thinking about purchasing. Another great video. Thank you. 😊

[@armchairincomechannel]

You are so welcome!

[@MessedUpParodies]

You and Garrett have given me something to think about with IWMI. The Armchair Income theme song is something else that I give thought to, as I catch myself singing it sometimes while doing chores around the house.

[@armchairincomechannel]

Thanks for your feedback. If the channel can encourage people to think, then its doing its job :) If the theme son gets stuck in your head that means I picked the right one!

[@sdrs95a]

Excellent interview! Great way to own small & micro caps. These are very volatile and I would encourage anyone to keep your investment in IWMI lower than most other covered calls. Such as on Aug. 2 when IWMI was done -3.23%,, vs -1.57 to -1.65% for ISPY & SPYI.

[@armchairincomechannel]

I don't know if small caps will offer as much appreciation as larger caps, but I like the diversification. Thanks for your feecback and the comparison.

[@Rob-on-the-go]

Excellent interview. Great questions and answers! Thanks for all you do!

[@armchairincomechannel]

My pleasure. I appreciate you taking the time to write your feedback (and also for watching)!

[@169Tomh]

Awesome interview AC…. loved it and your in depth questions and Garett’s explanations. Really great stuff loved what I heard as well as the exciting new ETFs coming from Neos!! Can’t wait to hear what the community thinks too! Thank you you’re the best!!

[@armchairincomechannel]

Awesome, thank you! Glad it was worth your time to watch.

[@svn0782]

Sorry for the rant. Ty for bringing all the videos educating us towards financial freedom :) keep up the good work

[@armchairincomechannel]

No worries. It would make me upset too.

[@SummitMan165]

Very very good interview! Very precise explanations and questions from both of you! Time very well spent on this Sunday morning ! Good job!

[@armchairincomechannel]

Thanks for the words of encouragement. It makes the effort to create these videos worthwhile!

[@likeicare300]

Neos rock, looking forward to their new products

[@armchairincomechannel]

Me too. It will be interesting to see what's next.

[@pavXX]

Good interview! With all the products in the pipeline, NEOS itself might be a good investment. ps: Toe-ing in to IWMI. Good timing for this fund.

[@armchairincomechannel]

It's a new and fairly small company so I don't think they plan to go public anytime soon. I like several of their funds. Thanks for watching :)

[@josephmichel1342]

I love the interviews. Keep them coming!!

[@armchairincomechannel]

Will do. I enjoy doing them so its a win win!

[@ClintonSiegel]

LFG! Great in-depth interview with the key and critical questions that must be asked and considered. Thank you!

[@armchairincomechannel]

Glad you enjoyed it!

[@elliotthall5543]

Great. I love these funds. I will add IWMY to my current SPYI/QQQI/FEPI portfolio.

[@armchairincomechannel]

Glad the information was helpful :)

[@sreekreddy73]

Thank you very much for another wonderful interview 🙏

[@armchairincomechannel]

Glad you enjoyed it!

[@jmcole56]

The Russell will be much more challenging than spy or qqq. It took 3 years for iwm to break out of the range it was in. Then last week it underperformed everything and fell back down with a dropping interest rate. The Ryld is down over 30% since inception while the Russell is up over 30%. If these guys can smooth it out and offer that dividend, it could be a real winner.

[@armchairincomechannel]

I agree and haven't been very excited about the Russell 2000 in the past. RYLD suffers too much NAV erosion. I think this one will outperform it but the bar has been set low.

[@nickbenrhardt1026]

I like their products but I worry about too much nav depletion in a calmer market year and especially in a down year. We shall see

[@armchairincomechannel]

There are risks for every asset type. Nothing does well during all market cycles. Covered call funds underperform the market when its rapidly appreciating. They do well during flat market. They underperform if there's a sustained bear market with a rapid recovery.

[@mikek3124]

These guys are great.

[@armchairincomechannel]

Thanks! (on behalf of this guy)

[@minhytube]

thanks! great interview. always learn something new and useful from your channel

[@armchairincomechannel]

Always trying to be useful :) Thanks for letting me know!

[@txbgould]

Thanks for the great interview. You do a great job of exploring these funds. I would love a video that walks through your process from discovery to investment.

[@armchairincomechannel]

Thanks for your feedback and the suggestion. I'll add it to my list of ideas for future videos.

[@sudhirpattath5214]

Very insightful. I have been meaning to dip a bit into the Russel ocean. This is good timing. Cheers,

[@armchairincomechannel]

I'm dipping my toe in the R2000 waters.

[@enkibumbu]

I wish I knew about this last week.

[@geeeee8268]

Covered call ETFs are known to shave an upside. So consider you self lucky.

[@armchairincomechannel]

A year from now I don't think a week will matter.

[@hulenbryant5637]

Nice interview. I noticed I was a little heavy SPYI (10%) and looking for another option. I'm thinking IWMI might be a great option for diversification within NEOS funds. Loving the tax efficiency of these funds !! Huge for my after-tax investment account.

[@bozomonster]

The dividend isn't qualified. Doesn't that make it less tax efficient?

[@armchairincomechannel]

You're right, it's not qualified. However, most of the income is treated as "Return of Capital" which means you don't pay tax until you sell on the ROC portion. If and when you sell, the tax is calculated as capital gains, which for most people is a lower rate than ordinary income. Also important to note is that your cost basis is lowered by the amount of return of capital.

[@armchairincomechannel]

The tax efficiency is a nice bonus. Thanks for watching :)

[@ryanccc777]

Thanks for the great overview, I smell a comparison video of IWMW and IWMI in the not too distant future.

[@armchairincomechannel]

That's a good idea. However, I'll wait until there's a decent amount of data to compare them. Ideally, looking at how they recover after a correction.

[@genesilvers1]

Thank you another wonderful interview with Garrett, I added a 2 percent stake today in IWMI, (whole portfolio down today, good buying opportunity) wondering , after your interview with steven bavaria, he so highly touted xflt as one of his biggest holdings, I noticed you don't own any, wondering why? Thanks again for great content.

[@armchairincomechannel]

Glad you liked the interview. I always enjoy interviewing Garrett. I'm looking through the many funds that Steven holds, including XFLT, and am open to buying (and making videos about), whichever ones make the most sense. Interesting that XFLT 1.15% on a day when the S&P 500 was down 3%.

[@momdittomomditto7705]

Thank you! Informative with a sprinkling of humor.

[@armchairincomechannel]

I'm glad you got a laugh out of it. Not always easy to find humor in covered call index fund discussions ;)

[@enricomonesi5856]

Oh......and a touch of good humour always goes a long way 😅

[@armchairincomechannel]

Great to hear you appreciate that :) Can't be serious all the time...that would be boring.

[@normansimonsen1203]

Magnificent stuff. IWMI allocation is now 5.15%. I might have to make a cash deposit in anticipation of that new high yield bond fund. It might have value to mention that the major Indexes are externally manged. We might almost forget the underlying power that lend success to these income funds.

[@armchairincomechannel]

Thanks Norman. I agree that the structure of the indexes (ie their reconstitution) helps them sustain great returns over the long term.

[@normansimonsen1203]

Can you confirm, HYGY will be the ticker for that high yield bond fund ? ​@armchairincomechannel

[@oneeyedjack8806]

Well, Big Russell took his butt kicking along with the rest of us today,,,,,,,

[@armchairincomechannel]

Yes, the biggest volatility spike since the pandemic. Didn't see that one coming! I think the tech valuation elastic band had been stretched so far that it sprang back with fury.

[@peoriaos6627]

@@oneeyedjack8806 great buying opportunity

[@marcosagosti6175]

Very useful video. Congrats!

[@armchairincomechannel]

Glad you enjoyed it, thanks!

[@btheinvestor8079]

i own all 3 funds so far no complaints had since the beginning

[@armchairincomechannel]

You were a bit earlier than me :) I'm just starting to dip my tow in the water for IWMI.

[@unitedred07]

I just don’t understand why it’s not even paying out as much as QQQI, would have thought it would have paid out more being based on the Russel 2000 🤷‍♂️. Thank you so much for your great informative videos!

[@armchairincomechannel]

At this point in time, QQQI is paying an annualized yield of approx 15% and IWMI is 14%. That's pretty close. Over time I expect they'll each vary slightly. Both indexes are more volatile than the S&P 500.

[@enricomonesi5856]

Many thanks for yet another very informative interview. I am already invested in SPYI and QQQI...... can't do 2 without 3, so I shall add this newer fund to the income arsenal 😂

[@armchairincomechannel]

Thanks for your feedback. The R2000 is a wild ride but I'm interested in the diversification.

[@enricomonesi5856]

@@armchairincomechannel I will start a position on the next opening bell 🔔

[@geeeee8268]

Sold two 215 - 195 put verticals expiring Aug 30th. Back when IWM jumped to 225. Collected $412 premium. I did feel a little FOMO and kind of knew it'll be quite a bit below 215 by the end of Aug. But this is my IRA which I will not be drawing for a long while. So I am totally planning to close 195 side when IWM hits the resistance... if it does by and of Aug. And even if it doesn't, still. Since I'd rather owned something that nothing. However, I don't see a strategy where 14% is attainable. Yes there is some IV to IWM, but getting more than 10% will be very tough. This if of course purely IMO.

[@armchairincomechannel]

Thanks for your feedback. It sounds like you're quite capable of executing your own buy/write strategy. I think Garrett misspoke when he said 11-14% "return". I think he meant "yield", which is what I asked him. There will be times when the R2000 corrects and the income won't cover the loss of value, which will eat into annualized total return. I would not expect a total annualized return of 14% from any fund over the long term.

[@khanbus]

Hello Sir, I enjoyed the insightful analysis and interview with Garrett. As an early investor in IWMI, having purchased shares shortly after its launch, I'm eager to learn more about the progress of the registered Bitcoin ETF Garrett mentioned in a previous interview. Could you please provide an update on its potential timeline if known?

[@armchairincomechannel]

Thanks for your feedback, I'm glad the interview was helpful. I don't know the timeline. As mentioned in the video, the SEC does not allow a fund manager to comment on funds that are awaiting approval. Garrett mentioned their intention to work with crypto, but did not promise a Bitcoin fund specifically. Even though we joked about it, I don't want to get him in trouble!

[@jochennorway5017]

Really love this channel! Great video - thank you very much! In terms of diversification: dont you miss income related funds focusing on Europe, Asia/Pacific, Australia…?

[@armchairincomechannel]

Glad you like it! That's a great question. A few years back I dabbled with income funds in Singapore, Canada, and Australia. Within a year, I sold them all because: 1/ There's less information available about those markets (vs the US), 2/ The exchange rate affects the returns and often in a bad way and 3/ The yields and total returns tend to be less than their US counter parts. I do like the idea of diversification, but I'm only willing to suffer so much loss of income/returns before coming to the conclusion its not worth it. I remain open to the concept if I found the right markets/investments.

[@jochennorway5017]

@@armchairincomechannel thank you! If you fully rely on USD but want diversification: ever thought about IFN?

[@Baron1975]

Once again, great content 👌 why you don't have 5mln followers ill never know.

[@armchairincomechannel]

I'm only 4.99ish million subs off that number. Baby steps :) "Get rich quick" and "Crash is coming" gets more subs but that click bait stuff isn't my cup of tea. Thanks for your kind words!

[@mikeconnell698]

Thanks for the idea. Looking at it!

[@armchairincomechannel]

Glad you found the interview interesting. Thanks for watching :)

[@mrandrewwong1712]

Yet another great review! Thanks! But isn't it an additional risk to have underlying assets as another fund vs. The individual holdings themselves? QQQI owns individual companies vs a Vanguard fund.

[@armchairincomechannel]

I don't see any risks associated with holding the Vanguard fund. They're a reputable firm and the fund is very simple; it's just the Russell 2000 index.

[@pdxway]

Another great video! I wonder if you are buying today. If so, which fund? I am thinking about getting into IWMI today or tomorrow.

[@armchairincomechannel]

No doing anything in reaction to the market dropping on August 5th. Each month I use some of my dividends to buy whatever is the best opportunity at the time. Most dividends are paid at the end/beginning of the month, so I'll do it again in about 3 weeks. As for rebalancing of existing holdings...no changes at the moment.

[@falla51]

It seems you typically wait for a track record before allocating into a fund. Will you wait on this as well, or has Neos’ proficiency with their other funds proven good enough? (Provided you want into RUT)

[@armchairincomechannel]

1/ Yes I do and 2/ I'm making an exception here because the strategy is identical to SPYI, which does have a track record. I'm not as bullish on the Russell 2000 as I am on SPY and QQQ but I like the diversification. Update will be in tomorrow's edition of Armchair Insider but now you know what's coming ;)

[@Dividendflywheel]

@@armchairincomechannelthank you for your transparency. And tge “substance” of your videos. Gravitas might be more appropriate 😊

[@allankyffin2954]

Another fantastic interview! General question: Do you follow any other investing groups on seeking alpha other than the income factory? (Just read his book, as a result of your interview, very good read)

[@armchairincomechannel]

I also follow Systematic Income and The REIT Forum. They're much more specific in focus. Mostly preferred shares, mREITs and BDCs. They don't cover ETFs or covered call funds.

[@cometmall1]

What an amazing content, great questions, really appreciate it

[@cometmall1]

And one more thing, thank you so much for valuing our time. Most other content needs to be watched at 1.5 speed

[@armchairincomechannel]

Glad it was helpful! I don't like "filler" or "fluff". Great to hear you don't like it either :)

[@AmeriGlobal]

In 2008 and 2020 ETFs dropped like a rocket. Didn't matter if a person owned ETFs tracking the Dow, S&P 500, Russell 2000, BDCs, preferred stock, or utilities. Most people will lose sleep hoping their investment doesn't drop 20 percent or more and then take several years to recover.

[@armchairincomechannel]

Thanks for your feedback. If you've found a better investment asset than ETFs or equities, you're welcome to share it. I'm always open to new ideas.

[@dominiquetheeasyminimalist]

Thank you for another interesting interview! I'm thinking that since the Russel is much more volatile with more "dramatic" ups and downs, over time this fund will go down? For income it sure is a nice option, but I'm not convinced it would keep my principle relatively stable like SPYI. 🤔

[@armchairincomechannel]

Good point. In short, there will be more volatility. In other words, it won't be as stable as SPYI. More income, less stability.

[@Dividendflywheel]

Great video. Thanks I saw the 2 or 3 blinks 😂😂. On a more serious note. • What is the probability (likely hood) of longterm principle erosion. • I am currently long small cap value and this income focused fund makes sense in retirement • General question for future interviews. What percentage of management own money are in these funds. We don’t need the $$ amount. But it proves their conviction in the product

[@armchairincomechannel]

These covered call funds don't have much history so NAV erosion is difficult to predict. If the market is flat or appreciates slowly then it will thrive. If the market corrects sharply and recovers quickly it will suffer NAV erosion (somewhat mitigated by the income). Global X's funds like XYLD have suffered NAV erosion but they're not actively managed and they don't write calls out of the money. I expect that the NEOS funds will suffer less NAV erosion than those funds. The fund managers invest personally in all their own funds but I don't know if they'll disclose each manager's percentage of their personal net worth in the various funds. I agree that it would be interesting to know that number (for all funds/investments from all fund companies).

[@Dividendflywheel]

@@armchairincomechannel thank you (my retirement countdown continues)

[@BTinSF]

I'm not a fan of index investing in small cap stocks because of the high percentage of such stocks that are unprofitable. That's the reason my biggest small cap exposure is from RVT which, of course, pays a much lower yield but has a long history of stock picking. I wish there were a small cap fund that used the same option strategy but curated the stocks it holds, at least limiting them to those with profits.

[@armchairincomechannel]

You raise a good point. There are plenty of companies within the R2000 that have negative earnings. The fund you're suggesting would be interesting (though a lot of work to manage given the large universe of stocks).

[@esthervdweijer8653]

This looks liks an exciting etf. Too bad that those etf's don't have a listing in Europe..... Hopefully that will change in the near future...

[@armchairincomechannel]

I hate to see investors "forbidden" from certain investments, its not exactly a "free market" if that's the case.

[@hewjkmail3248]

Great interview. Could the IWMI distribution be impacted by the annual reconstitution of the Russell?

[@armchairincomechannel]

Technically, if the newer stocks were more or less volatile that would affect the income producing potential. However, each stock represents such a tiny percentage of the Russell 2000 that I don't think it would have much impact.

[@sweetdividends]

Great content! One observation, I am starting to be convinced you have a “KZbin shirt” that likely comes out for videos and goes back into its vault between filming.

[@armchairincomechannel]

Spot on! It doesn't reflect light or do anything crazy to the camera so I keep using the same Lululemon shirt (in 2 colors). I'm paranoid about spilling food on it so I don't wear it for anything else. I'm completely open to a Lululemon sponsorship if the C Suite is watching...just sayin...

[@dblstkd1]

So how can we get most up to date info on any upcoming ETFs from NEOS in order to try to get in asap?

[@armchairincomechannel]

They can't discuss new ETFs before they're issued. Once they're issued, their website would be the place for the most up to date information.

[@SummitMan165]

Really liked the blink blink things at the end !! 🤣🤣🤣🤣👌👌👌

[@cumhurc4989]

Did he blink or not ??? lol

[@armchairincomechannel]

I saw blinks...

[@peoriaos6627]

Here are some I gleaned off of SA. The P after the ticker was an analysts opinion on whether the price was increasing over time. N Is Neutral or flat Positive-P Neutral - N BST-P CCD N EOS P ETO P EVT P HTD P PDT N RQI N SPE P UTF P UTG P ARCC P CCAP PGD FDUS P MCI P RVT P

[@peoriaos6627]

Many of them you have already

[@armchairincomechannel]

Thanks for typing all those tickers out!

[@danielgee8594]

How does SPYI, QQQI, and IWMI do dividend wise when there’s a market downturn or a correction?

[@armchairincomechannel]

A short term correction with high volatility (probably what we're experiencing now) will increase volatility for a short period which should increase the income. On the other hand, the price falls at a similar rate to the index. If the index recovers slowly, the ETF price will experience a similar recovery. If the price recovers quickly and at a rate that exceeds how far out of the money the options are written, then the ETF will recover more slowly than the index. There are also other factors, such as how much of the portfolio the fund manager is writing options on at the time.

[@danielgee8594]

@@armchairincomechannel Appreciate the reply. You're one of the reasons I got into CC ETFs

[@gg80108]

Tax for making tax treatment a priority too. Looking to max out my 12% bracket up to about 90k income

[@armchairincomechannel]

Thanks for your feedback. I like the tax efficiency too.

[@NursePeterMAbraham]

IWMI -> Co-Founder Garrett Paolella stated a total return of up to 14%, not yield.

[@NursePeterMAbraham]

@@timbradfield788 First opening moments of the interview.

[@armchairincomechannel]

You're correct. I believe it was an error, give that the question was "What are you targeting for yield?". In other words, I think he meant to say "yield" not "return". Having said that, most of the return comes from the yield, so its likely they'll be similar.

[@happycampers6592]

I'm confused about why they hold VTWO. The income source of the fund is derived from selling calls on the RUT index, which is settled with cash. What is the purpose of holding VTWO?

[@armchairincomechannel]

It's a covered call fund. If they didn't hold an asset that tracks the value of the RUT then they would be selling naked calls. Even though the assets aren't technically "called" if the strike price is reached (they're settled for cash), they do need to track the value of the index that the calls are sold against. Investors purchasing the fund receive the income generated by the option trading, but they also own a proportionate share of an asset that represents the value of the Russell 2000. Notwithstanding the portion of the upside that's sold via options, the investors are exposed to the appreciation, or depreciation of the Russell 2000. If the fund didn't hold a Russell 2000 asset, then it would be a pure option trading fund that would not have the potential to appreciate via exposure to the Russell 2000.

[@happycampers6592]

@@armchairincomechannel Thank you.

[@spectreQ]

thoughts on the svol volpocalypse?

[@armchairincomechannel]

It held up well. On a day when an ETF that shorts the VIX should suffer a dramatic collapse, SVOL dropped just under 6%. Compare that to another ETF that shorts the VIX...SVIX...down almost 39%!

[@andrewd9633]

After the market correction on Aug 2nd, has it changed your outlook on any of your investments or do you see it as a buying/price averaging opportunity

[@armchairincomechannel]

No. The price action for any given day or week doesn't affect my outlook as an income investor. I'm actually trying to avoid investments that would require day to day analysis of the market's gyrations. If we have a sustained downturn then I'll be looking to buy more income investments at lower prices (and higher yields).

[@andrewd9633]

@@armchairincomechannel today might be a good day to buy some more SVOL

[@delprior8542]

Question. Is May 14th, 2024 the latest updated PDF for your portfolio holdings?

[@armchairincomechannel]

July 15th is the newest edition. New edition will be out on August 5th.

[@delprior8542]

Thats Odd. When i log into your Armchair Insider the link for your portfolio (PDF) is dated May 14th, 2024. Will you be emailing the new August 5th update?

[@Optimus-Prime-Rib]

@@delprior8542the july one is there. I had the same issue last week, hunted around for like a minute and found it.

[@svn0782]

Why can't I get any of the Neos Etfs in Europe it's a shame. I feel like person of 2nd class.

[@armchairincomechannel]

That sucks!! Sorry to hear you don't have the option to buy what you want.

[@svn0782]

Actually went onto their website to ask about plans for europe - fingers crossed

[@pl95984]

​@@svn0782you can buy it freedom24 (the broker is in cyprus)...and swissquote (is in Swiss)...where do you come from?

[@bluecollarbullionballer4269]

Not my cup of tea but wish you good luck

[@armchairincomechannel]

I wouldn't describe it as a core asset but it appeals to some investors. Thanks for watching and commenting even though its not your thing :)

[@bozomonster]

The dividend isn't qualified. Doesn't that make it less tax efficient?

[@armchairincomechannel]

You're correct, it's not qualified. However, the majority of it is classified as Return of Capital, which is taxed when sold, not when the income is received. Most people pay a lower rate of tax on capital gains than they do on ordinary income, but it depends on your tax situation/income/ other investments, etc.

[@bozomonster]

@@armchairincomechannel Great, thanks for the clarification.

[@carloscuervo4361]

I was thinking that if coukd work as a strategy to buy any of these product and just hedge it with the actual index. Kind of trying to stay delta neutral but getting the income portion. Have you thought about that @armchairinvesting?

[@armchairincomechannel]

I don't follow the concept. The actual index and the covered call ETF based on the same index will fall at the same rate. I don't see how that would be hedging.

[@carloscuervo4361]

@@armchairincomechannel What I mean is going long spyi for example and short spy with the same weight.

[@nationalnotes]

Great stuff. Well done.

[@armchairincomechannel]

Glad you enjoyed it