$QYLE (-1,32 %) Hello everyone,

I came across this ETF today.

Since I don't know anything about covered calls, but would like to know, I'm asking you getquin community.

Can someone tell me the advantage(s) and disadvantage(s) of such covered calls and possibly also whether this is sustainable.

The dividend looks very interesting (especially for the saver's lump sum) but is such a high yield sustainable or how does the issuer earn money from it and offer this dividend?

I would like to thank everyone in advance and hope for some insightful explanations ✌🏼🫶🏼

... But I think the Open will go straight up on Monday. But the next bottom is bound to come at Orange Man...

... comes with a little cash flow to "compensate". However, the dollar exchange rate also spoils the fun. 🤷‍♂️ But still better than nothing

I increased my holdings on $QYLE (-1,32 %) more cash flow, more dividends and make the most of the tax-free allowance. 🦆💰 #Dividenden
#Cashflow

Imagine you own shares in a company - let's say 100 shares in Apple. You believe that the share price will tend to move sideways in the near future. Instead of simply holding on, you can generate extra income with covered calls.

This is how it works:

- You own the shares (hence "covered").

- You sell a call option on these shares. This gives someone else the right to buy your shares at a certain price (strike) up to a certain date.

- You receive a premium for this sale - and that is your income.

What can happen?

1. the price remains below the strike:

=> Nobody exercises the option, you keep your shares and the premium. Win!

2. price rises above the strike:

=> Your shares are "taken", you have to sell them at the strike. You receive less than the current market price, but you keep the premium.

What is this good for?

- Additional income in sideways markets.

- Some risk protection through the premium.

The risks?

- Limited profit potential (because you have to sell the shares if they rise sharply).

- If the share falls sharply, the premium only protects you a little - you still bear the price risk.

In short: covered calls are like rental income for your shares - you give up profits but collect regular premiums (dividends, etc.).

$SPYI
$QQQI
$QYLE (-1,32 %)
$AAPL (+1,76 %)
$MSFT (-0,72 %)
$AMZN (-0,36 %)
$GOOGL (-1,34 %)
$RHM (-0,95 %)
$NVDA (-1,35 %)
$NOVO B (-7,73 %)
$O (+1,99 %)
$NKE (+4,23 %)
$TSLA (+0,65 %)

Let's see what happens.