Don’t Fall Into the Dividend Trap. How Investors Misunderstand Covered Call ETFs

We explore the free dividend fallacy and how it applies to option income strategies. We break down the return drivers of covered call ETFs and examine the long-term performance record and volatility. Finally, we explain why it's better to own a single stock than a single-stock covered call ETF, such as MSTY, NVDY, or TSLY, offered by YieldMax.

Show Notes

The Dividend Disconnect - Samuel M. Hartzmark and David H. Solomon

Sam Hartzmark on Dividends - Meb Faber Research

The New American Hustle: Dividends Over Day Jobs - Denitsa Tsekova and Vildana Hajric - Bloomberg

Covered Calls Uncovered - Roni Israelov and Lars N. Nielsen - Financial Analysts Journal

Volatility Risk Premiums Embedded in Individual Equity Options: Some New Insights - Nikunj Kapadia and Gurdip singh Bakshi

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Investment Mentioned

Invesco S&P 500 BuyWrite ETF (PBP)

JPMorgan Equity Premium Income ETF (JEPI)

WisdomTree Equity Premium Income Fund (WTPI)

YieldMax TSLA Option Income Strategy ETF (TSLY)

Tesla (TSLA)

YieldMax NVDA Option Income Strategy ETF (NVDY)

NVIDIA (NVDA )

YieldMax MSTR Option Income Strategy ETF (MSTY)

Strategy (MSTR)

Related Episodes

471: Unlocking Income—A Comprehensive Guide to Investing in Covered Call ETFs

466: Does Dividend Investing Still Work?

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