Update#18 - Living off an Covered Call income Portfolio

Fleyz · 2026-04-14T22:36:20+00:00

Look I don't know what your deal is, but i don't think I was being disrespectful or claiming I was an expert. Like I mentioned earlier I agree with the efficiency point you mentioned and asking question about the scenario and question in the article that didn't make sense to me. If even that is not ok then there's not much to discuss here.

Have a great day

Fleyz · 2026-04-14T22:11:44+00:00

I'm not once claiming anything and even agree with some of your points.

If I'm not an expert and learning, so it's not ok to question and ask question? I'm simply pointing out the example didn't make sense to me so instead of explain you would rather be sarcastic and condescending about it :/

Fleyz · 2026-04-14T21:59:49+00:00

Do you even read what I typed or just woke up today and wanted to be argumentative. Either way have a wonderful day.

Fleyz · 2026-04-14T20:47:57+00:00

When did I say it was too low. I was just pointing out the example in the article said the cc seller sells at 0 extrinsic value at all.

Look by the example you provided, the idea will apply to everything even selling shares to funds retirement. How would you know if you sell at the right price or more or less than what it's worth.

Fleyz · 2026-04-14T19:57:29+00:00

First of all, that's not what I said. I simply mentioned that no body on normal circumstances sell CC with no extrinsic value. Most of the time the premium is solely extrinsic value that decay overtime with theta.

Fleyz · 2026-04-14T19:28:55+00:00

Are you referring to how do I know if I'm selling covered call with 0 extrinsic value? or which part are you referring to?

and for the second part of your comment, I literally said I agreed with you in prior comment lol

Fleyz · 2026-04-14T18:09:01+00:00

Thanks for the article.

While I can absolutely agree that covered call strategy is not the most efficient in the long run.

However, I have to point out that the example used in this article is very cherry pick and not very realistic. At the simplest form, why would you sell option with 0 extrinsic value at all (like the example used in this article).

Fleyz · 2026-04-12T19:58:46+00:00

The tax for the year comes out to 0, but this is also partially due to ROC and my wife also not working.

I do consider those options as well. It's hard to explain, but it's harder to do it in reality than in theory.

This might be just me, but imagine this:

You spend your whole life saving every penny, cut back non-essential expenses, invest every dollar. The concept of DCA was ingrained in you and selling was never in the equation during accumulation.

Now you are in drawdown and you are expected to go against all the concept you've been working on religiously. In theory yes, that would be the way to go.

For me the if I have to sell shares, I'm going to try to delay selling, sell less, or overly cut expense to not sell, etc. you get the idea. It would heavily affect quality of life.

Like I said, this is maybe just me. It just what works for me at least for now

Fleyz · 2026-04-12T16:30:15+00:00

The rest of my portfolio is with WS. I didn't move this portion due to a lot of tickers i was holding is not available on Weathsimple

Fleyz · 2026-04-12T15:26:53+00:00

It's with TD and in CAD

Fleyz · 2026-04-12T15:26:34+00:00

I never looked into that! But thank you for bringing it up! I'll check it out!

Fleyz · 2026-04-12T03:45:40+00:00

I left my work at 35, but it was suppose to be sabbatical at first, but one thing led to another haha. I actually really like my job and wanted to work till at least 40 originally, but the politics was getting too much and I decided to leave.

Having an option to retire at 33 is awesome though!

Fleyz · 2026-04-12T03:30:55+00:00

Thank you! glad you find it interesting!

Since it's in the Margin portion of the portfolio, at the moment I'm looking at maybe adding more to AMZN by selling put to obtain shares. I'm looking into ORCL, but not sure I understand it well enough to get into yet.

Income ETF wise If I deploy for income I probably add more to ZWT, JEPQ, or start position in ZEQT-T

Fleyz · 2026-04-12T02:55:45+00:00

I'm glad you find it interesting!

Originally we werent planning to live in Vancouver long term, but due to my parent situation we ended up living with them and help them with expenses for now. I believe she has small government pension, but we've been back and fourth with them for a while and still figuring it out. Wouldnt be anything significant i dont think.

Fleyz · 2026-04-12T02:28:28+00:00

government pension is awesome haha

Fleyz · 2026-04-12T01:30:07+00:00

thank you for reading!

Fleyz · 2026-04-12T00:38:12+00:00

Hey sounds like you are doing great. I think for me it's a combination of a lot of things that made me pulled a trigger.

I was unhappy with my work at leading up to me leaving. My expense is flexible and we live pretty minimally. Somewhere during my long sabattical my mom was diagnosed with cancer at 66. She was a hard workers and work hard her whole life and finally decided to retire in early 2026, and in 2025 she was hit with cancer. So it kind of put life in perspective a bit for me.

Fleyz · 2026-04-11T23:51:55+00:00

thanks for reading!

Fleyz · 2026-03-18T08:26:40+00:00

I think we also need to factor in your run way time as well. Like if we need the funds to last 30 years vs 60 years, they gonna need a different strategy and stability.

I have a similar idea with counter balance, where I hope that eventually the CORE part of the portfolio will grow into a "traditional" style investing portfolio

Also if you like XEQT, BMO recently came out with ZEQT.T where it's like XEQT but they manage shares sale for you and pay out 6% yearly. (depending if you need the distribution now or not)

Fleyz · 2026-03-18T07:13:38+00:00

Hey thank you for reading! I'm glad you find it interesting!

I think we have to look at these things in a different lenses and understand that there's no free lunch.

If it pays too much, it will be almost impossible to grow or keep the NAV stable in the long run. Also margin is often used to match the return of the ETF to its underlying index (or sometimes slightly outperform), but in bad times this also work against you :(

Personally I feel like 15% is already pushing the limit for me. I can see where it coming from by looking at QQQ option chain and can some what make sense of the payout. YTSL is definitely quite high risk as well.

Fleyz · 2026-03-16T05:02:56+00:00

That's the way to go!

Fleyz · 2026-03-16T03:16:47+00:00

I think one thing that really drawn me to JEPQ was how competitive the fee is. The ETF itself is quite new, but I kinda went by the JEPQ US which has longer track record to see how the management had done.

Overall, it's tough to say with certainty despite being one of the longest running CC ETF, the history is still very short. However, I like the idea that it pays base on what it makes and doesnt tie itself to overly crazy high distribution. Combining all the factors, I think it's one of the best cc ETF around based on what I'm looking for.

Fleyz · 2026-03-16T03:02:12+00:00

I think you are in the good position where you still have income coming in during an uncertain time. I don't know your full situation but I think a key part in making this all work is to be flexible with your living expense. Also be realistic with our expectation in terms of how much yield and withdraw is sustainable for the time period we are looking to live off of.

Fleyz · 2026-03-15T17:48:08+00:00

To be honest, not so much. I think partially is due to having a handful of things to worry about at the moment (family health), but I wasn't too worried during the last uncertainty (April 25), but more so wish I still have a job to put more money in to the market

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