1. Market volatility requires exposure to defensive ETFs like FT Cboe Vest S&P 500 Dividend Aristocrats Target Income ETF (KNG) for resilience and reliable dividend income. 2. KNG offers a generous 9% starting dividend yield with monthly distributions, supported by an ATM option strategy. 3. Despite a modest 4.5% price decline, KNG's price stability and income generation make it a buy in the current uncertain market environment.
Recent #Covered Call news in the semiconductor industry
1. SPYT and XDTE ETFs both implement 0DTE call strategies on the S&P 500, with SPYT using call spreads and XDTE using slightly OTM calls. 2. XDTE has outperformed SPYT since March 2024, offering superior total returns and higher distribution yields. 3. Despite XDTE's superior strategy, caution is advised due to extended market valuations, with SPYT rated as a hold.
1. Accumulating Roundhill S&P 500 0DTE Covered Call Strategy ETF (XDTE) due to its high yield and total return outperformance. 2. XDTE outperforms SPY with a 16% yield, showing lower drawdowns and consistent performance. 3. A 10-year projection model suggests reinvesting at least 33% of income to sustain capital and income growth in line with inflation.
1. YieldMax NVDA Option Income Strategy ETF (NVDY) offers high yield income through a covered call strategy, with a current dividend yield of 105%. 2. NVDY is exposed to single issuer risk as it relies heavily on NVDA stock, but also provides potential for price appreciation and monthly income. 3. The fund is ranked #1 among 44 nontraditional equity/derivative income funds, offering both income and some growth potential.