Before we start the main text, let's be clear: in the market, apart from the most basic government bonds and money market funds, there are almost no risk-free arbitrage opportunities. Low yields do not necessarily correspond to low risk, but high yields definitely correspond to high risk.
I believe stock market investment is an impossible triangle: low risk, high return, short time. Only two of these three can exist at the same time. Even for investment geniuses with very high timing accuracy, they can only increase the probability of the third element appearing, but cannot completely deviate from this rule. For us retail investors, the simplest and most effective method is to exchange time for space, buy and hold, using more time, lower risk, and ultimately achieving high returns. Always remember:When you see tempting high returns, never hand over your capital without understanding the risks of the investment firsthand.
Returning to the main topic, I believe tsly and other YieldMax individual stock covered call etfs are not suitable for simple buy and hold strategies. It is almost impossible to rely solely on tsly for stable returns. $YieldMax TSLA Option Income Strategy ETF (TSLY.US)$ $Tesla (TSLA.US)$
The distribution rate of TSLY is above 50%. Despite being able to continue to collect premiums in volatile and bear markets, two things should be remembered:
1. The price of the collected premiums...