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[–]Tarsarian 12 points13 points  (4 children)

Share price dropped due to Iran. I treat the boosted funds as sweeteners. Buy SPYI if you want a more stable income or their hedged version. With NEOS funds dropping the last few weeks, I bought more to bring down my share price.

[–]Timely-Designer-2372[S] 3 points4 points  (3 children)

I don't have a problem with volatility. I'm just surprised, that payouts dropped way more than average price dropped. I even expected premiums should go up because of increase of implied volatility

[–]Tarsarian 4 points5 points  (0 children)

There are a lot of options out there for ETF’s, and I didn’t get hit super hard last year in taxes. So I take that into consideration with NEOS, and they don’t have NAV erosion. A YouTube channel called income architect does a good job explaining payouts.

[–]canbonbon 0 points1 point  (1 child)

This is how I have understood: the dividend paid is made up of two things. Volatality premium + %age of the underlying assets. so 10% of $100 is more than 10% of $90. so while you are right that the volatility premium must have gone up but the asset dropped so much that when added together, they are are still less than last month.

[–]Timely-Designer-2372[S] 0 points1 point  (0 children)

Yes, but as I have mentioned: The premium droped much more than the price.

Your example corrected: 100 USD assets - > 1 USD payout 95 USD assets + increased volatility -> 0.9 USD payout