tinternwales

@ViperSlugg - One can buy the yield at anytime. Better to grow a large pot of money and invest for income when you need it.

@Samuel Smith
Samuel that was an excellent article and very appreciated. One thing not mentioned in the article that I would like to add is to not place Market orders for preferred shares. They're thinly traded and the price offered and the price you pay may be very different. I do small orders and always put a limit on my Buy price. My order may not get filled completely but it also avoids the surprise of overpaying from what you saw offered when you placed your order.
If I wanted to buy 500 shares today ,I would place five separate limit orders with slight price variations on each order.
As such a large position and preferred shares may not be easy to liquidate quickly depending on the volume traded.

Fish

Yep, me too--concentrating on the biggest and safest at this point, MSDL, BXSL, ARCC, OBDC.

This article misses the forest for the trees.

Yes, NVDY will underperform NVDA during explosive rallies — that’s not a “flaw,” it’s how covered call strategies are designed to work. Investors in NVDY aren’t looking to capture all the upside — they’re targeting high monthly income, with the tradeoff being capped gains. Comparing it 1:1 to NVDA’s raw return misses the entire point of this ETF’s purpose.

Calling the options structure “rigid” also misunderstands YieldMax’s approach. The standardized strategy of selling monthly calls (including FLEX options) at defined strikes provides transparency, predictability, and consistent premium income — not to mention huge yield during high-IV periods like now.

NVDY’s structure isn’t broken — it’s just not meant for traders chasing moonshots. For income-focused investors who want to get paid from Nvidia's volatility without riding the full roller coaster, NVDY does exactly what it promises. Judging it against total return from an open-ended NVDA holding is apples to oranges.

@Skeptical12 I agree with AJ111. I am a retired income investor and use a very small percentage of my total portfolio to juice my income with yield max funds, currently NVDY. If you own it in small doses, 5% or less of a portfolio, I see it as helping to weather storms during periods of high volatility. I have much larger positions in JEPQ and PDI and, I also use Cliffwater corporate lending funds. By doing this, I can keep a large cash reserve in money market funds and generate enough income to pay the bills during market downturns including periods of high volatility. I tend to buy 80% of my NVDIA purchases in NVDA and supplement the NVDA purchases with NVDY realizing that the principal will not perform like NVDA but it is a part of a much larger investment picture. I don’t see it as a “strong sell” if used for this purpose. Sometimes we live in a world of gray not absolutes.

Well written article,I actually own both. Been a fan of the covered call option ETFs for a while.

@Howard_JB Have an article pending on QQQI at the moment. I like it as well!

I hold both, and also QQQI

@Cain Lee I am a wildly aggressive (income) investor for a 66 year old, but it makes sense to me. I recently started following you and feel you provide some caution to my somewhat risky purchases. Thank you!

Interesting insights and ideas. I’m not as focused on income fluctuations as I am on loss of capital. That said I may take your idea and invest to generate $140 / month to pay a certain bill.

Agency backed securities aren't as solid as treasuries, but they're close, and far better than most corporate and some state and local bonds. There's risk in everything these days, and this seems to be a bit safer than most. Given that, the yields seem to be well above market.

@kkpar4 "I only approve the news sources that fit my narrative. All the others I just call 'woke left' because it makes my life so much easier than admitting that I might be in the wrong."

Fixed it for you

Great article and long NFLY. Have a great weekend.

@D.J.Reef I am not a fan only because it creates a synthetic long position and the last time I looked at it the numbers didn't work for me

@InMyOnion I bought in, now avg. cost ~$10/share. Even if they cut the monthly distribution to 20 cents per month, that would equal a yield of 24%. I'm liking 0.5989 a lot. In a better market, my cost could be close to zero in a year, playing with free money.

Yeehah! Almost double what it was 4 weeks ago.

@Damon Judd Yes, I was hoping for an increase from reading your comments and a another analysis. At least CCIF put out a Dividend schedule out til May. I noticed when the Dividend schedule timeline is up many of these Funds stock drops.

So basically mREITs suck.

Own several of the preferreds, none of the commons. Nice synopsis good sir.

No one should ever hold an mREIT… Their preferred stock is a different story. I hold a lot of of that and it outperforms the commons over almost any long hold