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A few questions. How is this different than the wheel strategy or Poor Man's?

Can they do this same strategy, but monthly instead of annually? They can pay any upside as a distribution

Sounds like an annuity

I want my $2.00 !!! Love that movie

So is it kind of a mix between a poor man´s covered call and a collar?

Ill stick with ZIVB! 25% yield. No downside for me.

I think they have the hedge too close to the money. I like to sell the calls that pays for the hedge at a rate of about 3 to 1 in credit. (So if it costs me $100 for the hedge I get paid $300 for the short call). That way you can aggressively lower the cost of entry. You mentioned it Dave. Its the risk/reward ratio. You should do it 3 to 1 in my opinion.

looks a sound strategy however I didn't get which strike deep in the money did they purchase

I'm surprise that they did not use the ticker IUL (Indexed Universal Life Insurance (IUL)). It's copy the IUL without the insurance part. If I want something like this ETF, why not get IUL?!

The first 100% buffer ETF came out last year and I put about $100,000 in it because that was part of my so-called bond fund
It was with Innovators, and the ticker symbol is TJUL
This is a great product as a bond replacement to get a 9% return
*Now, Callamos has come up with a one-year product that works exactly the same way, and I think it’s very attractive as one part of my bond replacement
Yes, this person explained how it works very well, but it’s not near as difficult as he made it sound, but he was technically correct
Great product for its intended use

"Take that rubber out of your wallet and throw it away, you weren't going to use it anyway"

And I took that personally.

Dave, I don't have a rubber in my wallet... lol

The problem with these are that they are a snapshot in time. You can do great for eleven and a half months and then the market corrects and you get nothing. I had an advisor buy some principal protected notes, which is what this is, and they sucked. This is the same thing hiding as an ETF

Pacer funds has the same thing comes in three flavors conservative moderate flex difference is the cap and downside % … I think you you have a ton of money and don’t want to loose it and yield better than bonds

Or you can just buy put options.

Hi Dave
In your example there is a $35k difference between the put they are buying and the otm call they are selling. How do they make up that difference so as to guarantee 100 pct capital protection? Cash position? Doesn't compute

This sounds similar to HEQT.

Do they pay monthly dividends

Sounds IV sensitive……

So they have a Synthetic Covered Call SPREAD to capture ALOT more up side than a slightly otm or atm covered call would still given some downside protection

Seems like the promises of annuities. It's a synthetic collar. I have often thought that the insurance companies that provide annuities use this approach to be able to make their guarantees.

Good report with a fun twist ! 👌👌

That is only if you got in from day one
Any later than day one the protection goes down and its only good for one year

Do you have any opinions on THTA? It seems like an interesting income play that has performed pretty well with very low delta credit spreads… 13% yield on a stable share price is pretty nice.

Haha

Any dividends?

Based on some very rough Math if you’d invested 100k in 2000 in SPY and 100k in this you may well have been better off today (I think around 20k) with this vehicle, without any of the pain. Think I might model it out properly.

No glove, no love.

In my youth, I used to run a hedged portfolio similar to how these funds operate. Over the long run you, after fees, you end up making about the same as you would in treasury bonds.

If I took that $2.00 and listened to the scammers on comments I could make $600 000 profit per week and just repeating until I was richer than bezos!

How much does the $SPY need to rise for you to achieve your full 9%+ capped return? If $SPY was particularly bullish over the year, could you achieve the capped return more quickly and not need to wait the full year? The ETF started at 25 dollars. Is it guaranteed to never go below 25? Is that how the protection works?

Insurance companies have been providing such funds for quite a while. If you take risk out, you don't earn the risk premium. It's that simple. These ETFs will not perform well.

No dividends? So if someone doesn't understand options and doesn't want to, like myself, this might be something to buy.

Appreciate the “cash is not trash” candor at the end.

ZIVB is the best

What happens if Mr Market stays flat 🤔 ?

No way just buy FEPI,

Buffer ETF’s are also available like BMAY BJUN etc that protect the first 9%down and gives you first 17% up. Structured like Fixed Index Annuities but NO long term commitments and the cap doesn’t change arbitrary to whims of the insurance company. In a flat market you lose the.69% fee plus the 1.29% dividend you would have received in spy. This would be a place to put some of your bond portfolio money.

Indexed annuity without the annuity. Is it 100% participation on the cap?

Unfortunately, the Expense Ratio (net) of 0.69% for CPSM is too high for my consideration.

I have 2 for you XDTE & QDTE. Would love to get your thought?

I bought 4 shares of CPSM the moment it was released. Cool.

not worth it

Two closed end funds, CSQ and CCD, are also Calamos. Fun fact, the founder John P. Calamos, Sr. is a combat veteran. He was a Forward Air Controller in Vietnam (boots on ground) calling in airstrikes.

THANK YOU.

Good morning, and thank you.

Question,
If most money managers cannot beat the market, why should we as individuals be in the market if we are not better than the professionals..

Can you do one on IVVW and IWMW. Some of the lowest expense ratios for buywrite etf, also backed by ishares. Would love if you could contrast this with JEPI, ISPY AND.SPYI. Thanks Dave.

So if you buy now 28 days later (from the start in early May), I will get what, less protection, more downside risk? Like buying from a gas station bathroom vs the corner drug store?

$2? It's over $25 today.

No thanks.