In the current market environment where uncertainty is still high, I have been using a dividend harvest strategy (through SDY) with an extra boast from selling covered call on SDY. When the market gets overbought (as measured by various OB/OS, Oscillators, etc), I buy some protection through ultra-short ETF (SDS).
Year to date, I'm up around 5% while S&P is down about 10%. Currently, I'm long SDY, sold May $36 Calls on the SDY, and covered by SDS position today (will re-enter when market gets overbought again). My only complaint is the wide bid-ask spread on the SDY options, but otherwise, happy to keep earning dividend & getting paid option premium while waiting for market to stabilize (VIX down and stay down).
Tough Times for Dividend Investors [View article]
Year to date, I'm up around 5% while S&P is down about 10%. Currently, I'm long SDY, sold May $36 Calls on the SDY, and covered by SDS position today (will re-enter when market gets overbought again). My only complaint is the wide bid-ask spread on the SDY options, but otherwise, happy to keep earning dividend & getting paid option premium while waiting for market to stabilize (VIX down and stay down).