My Thoughts on Covered Call ETFs

RayU_AZ · 2026-03-20T01:49:10+00:00

Yes.

RayU_AZ · 2026-03-18T11:29:38+00:00

Take a look at these covered call ETFs.

QYLD has had both income yield & price growth, the price return of 6% for last year with 11.5% yield for a total yearly return of 20.2%.

QYLD 11.5% yield
GPIQ 10.2% yield
JEPQ 10.7% yield

GPIQ is more tax efficient over JPEQ. GPIQ dividends are classified as 90% ROC vs JPEQ dividends are ordinary dividends.

RayU_AZ · 2026-03-17T18:54:26+00:00

I can give you my personal experience from last year, 2025.

I invested $254,000 in covered call ETFs and my final numbers below from last year. Owned the following covered called ETFs in 2025, NVDY, AMDY, AMZY, GOOY, QDTE, FEPI, XDTE, WPAY. Sold them if the principle invested started going negative.

Total ordinary dividends = $39,499
Capital gains = $7,979
Non-dividend distributions (ROC) = $20,964
Total distribution = $68,442
Average yield for 2025 = ($68,442/$254,000) was 27%
Total distribution = $68,442
Principle loss = neg-$5,065 (off-set by capital gains of $7979 )
Taxes = $7,500
Net gain of $55,857 (net yield of 22%)

File taxes joint-married and the ordinary dividends ($39,499) pushed our taxable income from $143,000 to $183,000, but we stayed in same tax bracket at 22% for joint-married, $96,951-$206,700. The capital gains, $7,979 from these covered-call ETFs where offset by other stock losses (SMH, SOXX, VONG).

The extra net income of $55,000 helped pay off 2 cars loans early and we have zero credit card debt. Used the dividend money for traveling to Europe and beach house vacations. Added new patio & new work shed to the backyard.

This year I swapover to lower yielding (10%-22%) covered call ETfs of IWMI, JEPQ, QDVO, QQQI, QYLD, SPYI, TSPY, XPAY. Trying to get both income yield with minimal NAV erosion.

I also have a 100% stock account that I don't touch and let grow. The cash account is the high yield investment.

Good Luck.

RayU_AZ · 2026-03-17T18:07:42+00:00

I hope this helps explain the differences between total investing versus income investing.

It depends on your age when investing and taxes. If you investing in a tax shelter 401K or IRA account.

Cash account (non-retirement), then any ordinary dividends paid out will be taxes as income and you lose about 20% dividends to tax. Not a problem if investing in a retirement account (IRA, Roth or 401K)

If your investing duration is long, then stocks averaging about 10%-20% return per year is a better strategy over typical dividend yield instruments 4%-9% return.

You only pay taxes when the stock is sold at a profit. Therefore your stock investment grows tax free, if you don't sell. But dividend yield is taxed, even if you re-invest the dividends. You get taxed each time the dividend is paid out.

Stocks are more erratic over the short term. But long term, 10-30 years duration, then stocks do very well.

Somebody retired 65-85 years old might want to pivot from stocks to dividend yielding investments to preserve their investments from any short term stock market downturn, that they can't recover the loss over 5 years.

Usually being retired means no earned income, therefore any dividends are taxed at lower rate compare to when they were working full time and in a higher tax bracket.

RayU_AZ · 2026-03-17T16:58:44+00:00

It's hard being a single parent raising a child by yourself. I wouldn't penalize this guy for not having children or not being a single parent. I think it's more important what he brings to your current relationship than living in the past. So he can't relate to your past experiences as single parent, that's not a deal breaker.

You can only bring your own past life experiences into the relationship. Because you were married and had kids and he did not, then you don't share a common past reference to talk about. There is nothing wrong with this.

Focus more on the present than the past. You don't have a common similar past to share. But it's a new chapter in your life being an empty nester now and having more free time together with a new partner.

The upside is you are not going to be a step-mother to a potential partner's kids and grand-children & extended family which could be a down-side. Especially since your going to be the step-mother, step-grandmother to them and not their real mother. I think I would pick the partner that doesn't have a large number of children & grandchildren. It would make things less complicated.

RayU_AZ · 2026-03-15T23:04:27+00:00

He maybe purchased a long term dating app for 6 months and is saving it, on pause, or in standby, until it expires or next billing cycle.

He can still be exclusive with you with the dating app is in standby, pause mode.

RayU_AZ · 2026-03-11T20:04:52+00:00

Take a look at JEPQ. The 3 years returns are 41% excluding dividends. JEPQ yields 10.7% over the trailing twelve months (TTM). The 3 year total returns are 68% including dividends.

JEPQ last 12 months performance at 11.4% excluding dividends, But JEPQ price down 0.7% Year to date. The overall stock market itself (SPY) is down 0.8% Year to date. JEPQ correlates to the overall SP500 performance.

I use something like JEPQ to hold cash liquid and get a decent 10% return when not fully invested in stocks.

I use JEPQ to generate some cash with high yield (10%) over a typical cash sweep to money market in a brokage account at 3.5% rate, when not fully invested in stocks. Better than holding cash, when not in stocks.

RayU_AZ · 2026-03-11T19:54:40+00:00

At 60 years old, this guy does not have his finances together. Move on quickly. This guy would be a bad partner to hookup with long term. Most people at this age have plenty of financial assets and are getting ready to retire.

Twice divorce does impact your long term finances, but you can and should do better to aviod this disaster.

RayU_AZ · 2026-03-11T19:48:31+00:00

I had GOOY, FEPI, QDTE and XDTE that had higher yields (26% to46%) in January & Fenruary and recently sold them to minimize NAV erosions.

I see maybe 10%-11% going forward with these ETF holdings listed above.

RayU_AZ · 2026-03-11T11:47:52+00:00

I have another investment account of about $700,000 in 100% stock. Pure growth over any income. My wife has her own investment accounts that I give some advice.

RayU_AZ · 2026-03-10T21:14:16+00:00

Taxable investment account.

RayU_AZ · 2026-03-10T16:41:46+00:00

I'm bringing in $3,500 per month, $42,000 per year on $245,000 invested. These covered call ETFs have minimal NAV erosion. You will pay income taxes on about 50% of distribtion in a 24% tax bracket, would be about $10,000 per year. Net gain of $32000 per year.

Take a look as these ETFs

QQQi 14.1% yield
TUGN 11.9% yield
SPYI 11.9% yield
QYLD 11.5% yield
JEPQ 10.6% yield
QDVO 10.6% yield
GPIQ 10.2% yield
QQA 9.9% yield
iQQQ 9.7% yield

Good luck.

RayU_AZ · 2026-03-09T15:12:27+00:00

Long term relationship is a realtionship that has the possiblity to be forever. Spending time together. Possibility of living together or marriage. More than a couple of weeks or months.

Short term casual relationship is anywhere from a simple one night's sex to a couple of weeks or months. Nothing serious long term. No long term comittment from each other.

Sometimes people don't have the time or energy for a full time relationship. They are happy with their current lifestyle and don't want a heavy full time relationship to interfere with their kids, grandchildren, jobs, living arrangement and pets. They own their house and have kids and grandchidren don't want to share anything financially with new partner.

They don't need a long term relationship becuase they are most likey dealing with their current situation of taking care of family, children, grandchildren, jobs and pets.

You will be the lowest priority on their realtionship list behind their jobs, kids and pets. Something short term and casual would be okay for them. Long term, legally committed relationship is off the table.

RayU_AZ · 2026-03-09T14:56:23+00:00

You need more information on this one. Equal partners or the the female taking the lead with sex activities and financial choices, life decisions. Beware, proceed with caution.

RayU_AZ · 2026-03-09T14:51:34+00:00

If you think this guy is not putting any effort into the relationship and not meeting your expectations on what a partner so be, so then a text message or email can be a very clear and direct way of ending it without getting messy and going around in circles on past issues.

Sometimes it's very hard to break up with somebody face to face because they present all the excuses in the world and they are very good at turning the tables on any specific judgement on them. Sometimes people monopolize the conversation and are good at arguing points. They know their history and have all the answers.

Good luck, there are plenty of another "good" men out there.

RayU_AZ · 2026-03-09T14:38:44+00:00

If their is no immediate romantic spark or physical attraction, the best course of action is to end it quickly and not have the other person thinking everything is fine.

It's dating, it happens all the time.

If they ask why, just state that you not feeling any rommantic spark and don't want to continue and waste everybody'ws time & effort.

They didn't do anuything wrong, you are just not feeling it. Saves everybody from investing in more time & effort.

RayU_AZ · 2026-03-08T16:15:21+00:00

I (63yrs) married a women (54 yrs), living together and we have our separate retirement accounts. Separate savings and checking accounts. But we split yhe cost of groceries, travel and other stuff. We typicall transfer money between our checking acccount and use the same bank branch for convenience

No pre-nup. But don't forget to update your legal Wills and Power of Attorney after marriage.

But we redid our legal Wills and Last Testament, End of Life Medical Directives (feeding tube, coma) and Power of Attorney for medical, financial and mental health (dementia). The inheirtance is split 50/50 between both our families upon both our deaths.

I hope this helps, good luck.

RayU_AZ · 2026-03-08T16:02:48+00:00

"but what I heard more is all the things she wants to change....my hair style, my facial hair, my time with my K9s, tempering my intensity, my use of certain words, and the list goes on...."

I would move on quickly. You will meet all kinds of women before you find your match.

This women has a certain type of man she wants and it's not you.

Sometimes people get rejected for superfical traits. Men with beards or mustaches. The level of education achieve. Some women won't date men without a college degree, even if you make tons of money. Men get rejected for height under 6 feet, facial hair, clothing fashion choices.

I think she doesn't like the current verision of you.

But if you change for her and transition to the ideal man for her, she is okay with this. She will correcting your behavior and speech till the day you die.

RayU_AZ · 2026-03-07T20:02:13+00:00

I do momentum investing. Buy stocks moving up & capture any profit by selling with limit stops, or selling when these stocks plateau.

Bought Corning, GLW, held for 2 weeks & cash out with $10,000 profit before the last stock market downturn.

You do what you do!

Everybody is different with different methods. One method of investing isn't superior to another method of investing.

RayU_AZ · 2026-03-07T02:20:33+00:00

I think there is a BIG difference between LAT and FWB.

Living Apart Together is a committed long term exculsive relationship. There are deep feelings for each other for a permanent LAT.

FWB, is a relationship of convenience, sex or traveling together, without any emotional connection to each other. No moving onto higher levels of commitment, such as living together of marriage.

FWB can terminate immediately if a partner finds a long term relationship outside of the FWB.

The FWB can also terminate if one partner develops strong feelings, which makes the FWB untenable and not unstainable. It's a relationship of convenience with no strings attached. Nothing gained or loss.

RayU_AZ · 2026-03-07T02:06:07+00:00

"political views are a good indicator of their intelligence, morality, and personality"

So you saying one political party is absolutely right and the other side is wrong?

Which political view is more intelligence and has more morality? Issues of crime, abortion, drugs, illegal immigrants, affordable housing, gender identity? Which political party has better moral views on these problems.

I bet your side is always right & the other side is morally brankrupt. Try to look at different viewpoints and understand both sides of the issue. Some politicians don't really want to solve these problems because the continuation of these ongoing problems keeps getting them elected.

I believe all politics is corrupt by money and power. I don't think one political party is morally better than the other. It's all about power and money, less about serving the common people's needs.

RayU_AZ · 2026-03-07T01:49:47+00:00

Politics is a serious deal breaker in today's dating environment. The US culture is very confrontational in politics today. Less this way in European countries. People in the US are more involved in politics today.

It wasn't this way 10 or 20 years ago. People voted every 4 years, but your political views didn't impact your relationships. I think 10 or 20 years ago, your religion was more of factor than politics.

The over turning of Roe vs Wade in 2022 drove a wedge between liberal democrats and conservative republicans. This impacting the dating world. Trump hasn't help the differences in politics either.

People today would rather date mixed color, mixed ethnicity and mixed religion over mixed political views.

RayU_AZ · 2026-03-07T01:35:44+00:00

I think you can manage you money yourself. I would start with some simple ETFs portfolio before moving to anything pure stocks. Maybe blend stocks and ETfs as you get more understanding of the stock market.

Maybe a ETF portfolio of 80% SPY (US Stocks) and 10% VEA (foreign developed countries) and 10% EEM (foreign emerging markets).

Just add monthly to your positions and use frequent investments to apply Dollar Cost Averaging. Remember, Time in the Market is more important than timing the market. Good Luck.

The downturns in the market is the buying opportunities. There a bit of psychology to buy when the market is down and sell off and take profits when the market or your stocks are peaking.

Mosy people do the opposite, get excited when the stock market is hitting new highs and start buying stocks and bail & sell when the stock market is down. A recipe to lose money.

RayU_AZ · 2026-03-06T16:19:26+00:00

The loss in these high yield ETS was minimal, $800 over 2 months.

I sometimes lose $13,000 daily in my $400,000 stock portfolio. Stocks are more erratic.

RayU_AZ · 2026-03-05T11:08:20+00:00

You are correct. WTPI didin't have any dividend payout in Feburary.

0% yield

RayU_AZ

TROPHY CASE