Covered Call ETFs vs Do it Yourself (7-12% Yield)

Dave from the Wealth Adventures channel joins us this week for a discussion of selling your own covered calls to generate income, versus buying Covered Call ETFs like JEPI, JEPQ, and SPYI. Dave has extensive experience doing both, which makes him the ideal person to weigh in on this topic. His channel offers tutorials on how to use options to create additional income (links below). If you like high yield dividend investing, I hope you enjoy this discussion of selling covered calls for income, versus buying covered call ETFs.

✏️ LINKS FROM TODAY'S EPISODE:
Wealth Adventures’ Option Basics - Getting Started! (Playlist):

Wealth Adventures’ Top 20 portfolio:

➡️ My Favorite Dividend Tracker, Snowball: (Create a Free Account, and the 10% Discount will appear under "Subscribe"):

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Timestamps:
00:00 Introduction
00:18 Is selling covered calls simple enough that anyone could do it?
00:56 Do you hold any covered call ETF's?
01:59 How much can you make selling covered calls?
03:40 Are the returns similar to buy an ETF like JEPI?
04:42 Do you focus on selling covered calls on the major indexes like the S&P 500 and the NASDAQ 100?
05:57 Is it less risky to sell covered calls on indexes?
07:02 What happens if you sell a call without owning the stock?
09:02 How much work do you put into selling covered calls?
10:11 What's the worst case scenario if you sell covered calls?
11:50 Is selling covered calls the least risky option income strategy?
12:55 What type of investor personality would be suitable for selling covered calls for income?
15:05 Why isn't selling puts more popular with covered call funds?
16:24 Why is selling a put better than placing buying with a limit order?
19:45 How can viewers learn the basics of selling covered calls?
20:37 How can viewers see the stocks and funds you own?
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🤓 DETAILED INFORMATION:

✅ Seeking Alpha:
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[armchairincomechannel]

Snowball Dividend Tracker (Create a Free Account, and the 10% Discount will appear under "Subscribe"):

[Dividendflywheel]

By the power and authority vested in me… I Knight both of you “Lords of Passive Income” 😊

[JeffBrown]

This video answered something I’ve always wondered and hadn’t seen covered elsewhere! Two great people to talk about both approaches! Well done!!😊

[momdittomomditto]

Very cool that you interviewed each other! I enjoy both channels immensely.

[robertmather]

Thank you for an excellent presentation. Having personally traded options for over 30 years, supervised individual brokers and having option desks reporting into me may I suggest a couple of ideas 1) if you are going to "trade" options - do it for a couple of months on paper just to get a "real world feel" for the actual market/instrument you are going to concentrate on 2) remember that trading in individual stocks can be halted by both the listed company or the Regulator pending news & you may not have time to close or roll option positions. "Investors" have gone bankrupt due to this exposure. Give serious thought to strategies that involve the strategy of purchasing further out of the money puts or calls as insurance vs dramatic volatility beyond your control 3) keep watching the tutorials of these two thoughtful men demonstrating proven strategies . Best of luck.

[international_dividend]

Dave's initial explanation from 2 minutes to 4 minutes is enough for me to simply pay someone else to do the option trading for me. As the interview goes on, it solidifies this position. I'll leave it to the experts to determine whether they feel the market will go up or down - otherwise, I'm just gambling and spending valuable time doing it.

[wealthadventures]

It was great talking to you about options and income investing! Appreciate all the great content and always looking forward to more from Mr. Armchair!👍

[geralddery]

The only problem with Calls and Puts is that you need to purchase 100 shares before buying a call or put contract. Yes, I know there are now synthetic, but we are keeping it simple and at the beginner level. So, you need much more cash on hand. Now with the high yield Efts, whatever cash you have on hand is good to purchase.

[willydear]

I consider myself a mean reversion value investor with a buy write strategy. I target an annual return of 4 % dividend, 4 % stock appreciation, 12 % premium for covered calls. I look for 1 % premium per month and 5 % per month out of the money target price, usually around 25 delta. This does limit your upside potential but making 6 % in one month is a very acceptable gain for me.

[thumperjr]

Excellent interview. Two of the best investing channels on YouTube.

[waltlowry]

Watched both interviews, really enjoyed it. Love both channels. Thank you !

[ronm]

You two guys remind me of the movie Step-Brothers.Keep up the good work, we all in it for the income.

[Baron]

I'm subscribed to both channels. Had no idea you knew each other.

[rOHRshackartpottery]

Great videos from both of you. Dave described my personality exactly. Retired and have no interest in trading or using options. The ETFs fill my needs.

[Alphahydro]

I believe what makes Covered Call ETFs superior to DIY is the former has the ability to compound with less hassle.

[drdontpassone]

both legit guys..need more guys like these 2

[Crockerfeller]

Love the release cadence of your new vids lately!

[zentravel]

Great content as always. At my age, time is my most important commodity by far. Personally, there's a dozen other things I'd rather be doing with my time than calculating options risk, evaluating option chains, etc. When I want options exposure in my portfolio, I leverage appropriate and well thought out ETFs with a track record to match such as an SPYI by NEOS for example. Nevertheless, thanks again for a great interview!

[brucef]

I'm with Dave. Why not have a little of both. Some limited self-directed options income and your option income ETFs.

[JoeMomma]

I'm a big fan of Dave's channel too.. IMO, don't be too greedy and rolling for credit is your best friend when starting out..