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Talking stocks, trading, and investing in general

gettoasty

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Isn’t JEPI hedged equity using underlying options benchmarked against the S&P? You’re going to see a drag on the ETF compared to SPY because the whole strategy is really meant to protect losses while providing a high yield due to selling those underlying options. Any upside would be mitigated because the hedged equity essentially has costs that cap the gains per se. Are you also using that as an alternative to fixed income? Given how bonds have been killed the last 3 years or so.

There’s also JEPQ

Goldman has similar hedged equity options too.
 

Texasmade

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Isn’t JEPI hedged equity using underlying options benchmarked against the S&P? You’re going to see a drag on the ETF compared to SPY because the whole strategy is really meant to protect losses while providing a high yield due to selling those underlying options. Any upside would be mitigated because the hedged equity essentially has costs that cap the gains per se. Are you also using that as an alternative to fixed income? Given how bonds have been killed the last 3 years or so.

There’s also JEPQ

Goldman has similar hedged equity options too.
too many big words that I have no idea what you're saying
 

grio1212

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Isn’t JEPI hedged equity using underlying options benchmarked against the S&P? You’re going to see a drag on the ETF compared to SPY because the whole strategy is really meant to protect losses while providing a high yield due to selling those underlying options. Any upside would be mitigated because the hedged equity essentially has costs that cap the gains per se. Are you also using that as an alternative to fixed income? Given how bonds have been killed the last 3 years or so.

There’s also JEPQ

Goldman has similar hedged equity options too.
Nah dog, dont stress. Just watch the line go up.
 

gettoasty

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Instead of trading options that can be costly there are ETFs that emulate that nowadays. You can even think of these ETF as an annuity vechicle whereby you receive some dividend/interest income while having some downside protection. In this case, that dividend is being reinvested per OP discussion. I was just trying to understand or explain why such ETF that has underlying holdings as SPY would have lower return and it’s because of options despite the DRIP. Also, expense ratio is like 40bps with JEPI and I imagine SPY is close to 0.
 
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brokencycle

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Instead of trading options that can be costly there are ETFs that emulate that nowadays. You can even think of these ETF as an annuity vechicle whereby you receive some dividend/interest income while having some downside protection. In this case, that dividend is being reinvested per OP discussion. I was just trying to understand or explain why such ETF that has underlying holdings as SPY would have lower return and it’s because of options despite the DRIP. Also, expense ratio is like 40bps with JEPI and I imagine SPY is close to 0.

What ETF emulates my ability to be up 50% on my option trade within 24 hours, but then by the end of the week be down 95%? I need an easier way to set my money on fire after a brief glimmer of hope.
 

jbarwick

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@Piobaire Portfolio Visualizer I think has the option where you can plug in the S&P vs Dividends on the monetization front and see what happens. On mobile so can’t help…honestly sounds like a paid feature for a site.
 

UnFacconable

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@Piobaire Portfolio Visualizer I think has the option where you can plug in the S&P vs Dividends on the monetization front and see what happens. On mobile so can’t help…honestly sounds like a paid feature for a site.
I’ve heard good things about ProjectionLab as well. I haven’t used it because I’m in more of a boom or bust situation which makes granular planning suffer from false precision but that’s something I would take a look at for people who have a pretty good handle on their financial picture and looking to better understand how that may develop in retirement.
 

brokencycle

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I’ve heard good things about ProjectionLab as well. I haven’t used it because I’m in more of a boom or bust situation which makes granular planning suffer from false precision but that’s something I would take a look at for people who have a pretty good handle on their financial picture and looking to better understand how that may develop in retirement.

I recommend going with the boom scenario. I don't know why you would choose to bust, but I'm sure you have your reasons if you're considering it.
 

Omega Male

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Weebs rejoice — waifu pillows ever more affordable.
 

Omega Male

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