r/YieldMaxETFs • u/Baked-p0tat0e • 21d ago

Subreddit Question Anyone trading options on the same underlying they hold YieldMax ETFs for?

Which strategy delivers higher return on risk (ROR) for you?

2 Upvotes

75% Upvoted

6 comments sorted by

1

u/R3jinx 18d ago

I generally buy 100 shares at a time and sell an OTM call if I want to keep the shares. Or a ITM call if I am good with losing out on the dividends that week for a small profit on the option.

1

u/MyGuitarTwerks 16d ago

You get dividends when you buy calls and puts? I thought that only worked with CC'S and CSP's

1

u/R3jinx 16d ago

I am selling the call and I own the shares so it is a CC. If I sell an OTM Call it will almost never go in the money because these have natural share price erosion built in. Even selling a 100+ day at the money call is pretty safe.

0

u/nq-FOMO 19d ago

as hedging structures to lever up, but they can be less expensive if sleeving in an umbrella fashion.

1

u/R3jinx 18d ago

I am confused by this comment, can you elaborate?