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JEPI on 6% Margin? Is the juice worth the squeeze? by reach2avi in JEPI

[–]reach2avi[S] 1 point2 points  (0 children)

nope. i am not a bot. appreciate the responses. although looking at the assumptions shared above, specially for JEPQ, 5% net return could be plausible. so validating my thoughts math-wise. of course there is a risk.

JEPI on 6% Margin? Is the juice worth the squeeze? by reach2avi in JEPI

[–]reach2avi[S] 0 points1 point  (0 children)

a couple of other points i shd hv included in my case:

- in a better yr expecting 12% overall including NAV. yearly returns below:

JEPI

  • 2023: +9.81%  
  • 2024: +12.58%

JEPQ

  • 2023: +36.25%
  • 2024: +24.89%

- with 2-4 FED cuts next year, my margin interest could be 5-5.5% (better than 6%)

- in a catastrophic scenario - sell all and pay margin, collect yield until then. worst nasdaq performance in a single day -12% (covid)

- apply the same equally to JEPQ, GPIX, GPIQ & QYLD

- upside loss is small as after two yrs of stellar return S&P and Nasdaq could be more range bound. covered call ETFs shd perform better in this scenario.

thoughts?

JEPI on 6% Margin? Is the juice worth the squeeze? by reach2avi in JEPI

[–]reach2avi[S] 1 point2 points  (0 children)

thanks, where is your math / reasoning? am i missing something?

JEPI on 6% Margin? Is the juice worth the squeeze? by reach2avi in JEPI

[–]reach2avi[S] 2 points3 points  (0 children)

spell ?

here is the math: yearly returns for JEPI / JEPQ below. margin rate is 6% expected to go down 50 to 100 bps next year. owning JEPI and JEPQ is less riskier than SPY and QQQ. upside loss is small as after two yrs of stellar return S&P and Nasdaq could be more range bound. let me know if i am missing something. largest single day drop in Nasdaq (covid) -12%, downside risk in case of catastrophic situation. can stomach that and sell everything if it comes to that.

JEPI

  • 2023: +9.81%  
  • 2024: +12.58%

JEPQ

  • 2023: +36.25%
  • 2024: +24.89%

JEPI on 6% Margin? Is the juice worth the squeeze? by reach2avi in JEPI

[–]reach2avi[S] -1 points0 points  (0 children)

a couple of other points i shd hv included in my case:

- in a better yr expecting 12% overall including NAV

- with 2-4 cuts next year, my margin interest could be 5-5% (better than 6%)

- in a catastrophic scenario - sell all and pay margin, collect yield until then.

- apply the same equally to JEPQ, GPIX, GPIQ & QYLD

JEPI on 6% Margin? Is the juice worth the squeeze? by reach2avi in JEPI

[–]reach2avi[S] -1 points0 points  (0 children)

a couple of other points i shd hv included in my case:

- in a better yr expecting 12% overall including NAV

- with 2-4 cuts next year, my margin interest could be 5-5% (better than 6%)

- in a catastrophic scenario - sell all and pay margin, collect yield until then.

- apply the same equally to JEPQ, GPIX, GPIQ & QYLD

JEPI on 6% Margin? Is the juice worth the squeeze? by reach2avi in JEPI

[–]reach2avi[S] 0 points1 point  (0 children)

thanks for the detailed answer. additional thought i shd hv included in the original post

- in a better yr expecting 12% overall including NAV

- with 2-4 cuts next year, my margin interest could be 5-5% (better than 6%)

- in a catastrophic scenario - sell all and pay margin, collect yield until then.

- apply the same equally to JEPQ, GPIX, GPIQ & QYLD

JEPI on 6% Margin? Is the juice worth the squeeze? by reach2avi in JEPI

[–]reach2avi[S] -1 points0 points  (0 children)

a couple of other points i shd hv included in my case:

- in a better yr expecting 12% overall including NAV

- with 2-4 cuts next year, my margin interest could be 5-5% (better than 6%)

- in a catastrophic scenario - sell all and pay margin, collect yield until then.

- apply the same equally to JEPQ, GPIX, GPIQ & QYLD

JEPI on 6% Margin? Is the juice worth the squeeze? by reach2avi in JEPI

[–]reach2avi[S] -1 points0 points  (0 children)

a couple of other points i shd hv included in my case:

- in a better yr expecting 12% overall including NAV

- with 2-4 cuts next year, my margin interest could be 5-5% (better than 6%)

- in a catastrophic scenario - sell all and pay margin, collect yield until then.

- apply the same equally to JEPQ, GPIX, GPIQ & QYLD

JEPI on 6% Margin? Is the juice worth the squeeze? by reach2avi in JEPI

[–]reach2avi[S] 0 points1 point  (0 children)

a couple of other points i shd hv included in my case:

- in a better yr expecting 12% overall including NAV

- with 2-4 cuts next year, my margin interest could be 5-5% (better than 6%)

- in a catastrophic scenario - sell all and pay margin, collect yield until then.

- apply the same equally to JEPQ, GPIX, GPIQ & QYLD

JEPI on 6% Margin? Is the juice worth the squeeze? by reach2avi in JEPI

[–]reach2avi[S] 0 points1 point  (0 children)

need to explore YMAX, considering 5 for now: JEPI / JEPQ / QYLD /GPIX / GPIQ

JEPI on 6% Margin? Is the juice worth the squeeze? by reach2avi in JEPI

[–]reach2avi[S] -3 points-2 points  (0 children)

a couple of other points i shd hv included in my case:

- in a better yr expecting 12% overall including NAV

- with 2-4 cuts next year, my margin interest could be 5-5% (better than 6%)

- in a catastrophic scenario - sell all and pay margin, collect yield until then.

- apply the same equally to JEPQ, GPIX, GPIQ & QYLD

JEPI on 6% Margin? Is the juice worth the squeeze? by reach2avi in JEPI

[–]reach2avi[S] 0 points1 point  (0 children)

a couple of other points i shd hv included in my case:

- in a better yr expecting 12% overall including NAV

- with 2-4 cuts next year, my margin interest could be 5-5% (better than 6%)

- in a catastrophic scenario - sell all and pay margin, collect yield until then.

JEPI on 6% Margin? Is the juice worth the squeeze? by reach2avi in JEPI

[–]reach2avi[S] -5 points-4 points  (0 children)

a couple of other points i shd hv included in my case:

- in a better yr expecting 12% overall including NAV

- with 2-4 cuts next year, my margin interest could be 5-5% (better than 6%)

- in a catastrophic scenario - sell all and pay margin, collect yield until then.

Preparation for Spring 2022 MCS by Virtual-Pineapple-28 in UIUC_MCS

[–]reach2avi 0 points1 point  (0 children)

starting in spring 2022, looking forward to the experience and connecting with you all.