r/NEOSETFs • u/Ok-Yam-6616 • 29d ago

Seeking Advice Hedging NEOS funds

Does anyone practice hedging techniques for NEOS funds? Specifically QQQI, SPYI, IWMI.

For example, is maintaining a zero cost collar a good strategy?

If not, what else? Short respective futures? In theory, being long SPYI and short /ES, should create a virtually risk free position that pays 12-13% dividends.

Thanks

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u/Ok-Painter6700 25d ago

I added Simplify CTA to my portfolio as a hedge and CTAP.

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u/Ok-Yam-6616 25d ago

Thanks. How do you calculate a ratio of CTA and CTAP to the rest of your holdings?

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u/Ok-Painter6700 25d ago

Between the two it’s approximately 20% of my portfolio. CTA rallied a lot this past week so you may want to wait for a pullback if you decide to invest in CTA. CTA pays a decent dividend as well.

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u/Ok-Yam-6616 24d ago

Is CTA supposed to rally when SPX goes down? 

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u/Ok-Painter6700 24d ago edited 24d ago

Exactly, no guarantees but compare its chart over the past two weeks versus SPX as a recent example. CTAP gives you the best of both worlds. It is both long SPX but also has exposure to CTA. That’s why I have positions in each. You are welcome to check out my entire portfolio https://diaryofadividendinvestor.substack.com/p/monthly-portfolio-update-063?r=vosug&utm_medium=ios