2Settimana·

That thing always falls, doesn't it?

The thing falls when the market falls and falls when the market rises. Can you actually $JEGP (+0,35%) actually short it? The strategy should be promising 🤣

15 Commenti

Imvestment4Life@Investment4Life

2Settimana

Euro to dollar strength is also detrimental.
Could turn again in a few years.

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Fortunus@Quiny

@Investment4Life This also applies to most other ETFs. However, the expectation is the performance of a low-volatility world ETF with capped upside. This ETF (currently) simply does not fulfill this by far.

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Sahnehäubchen 🦋.@Savvy_investor_2000

2Settimana

Anything goes with IBKR.
But then you voluntarily pay all the option premiums and dividends to the covered call group every month.

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Sahnehäubchen 🦋.@Savvy_investor_2000

2Settimana

@Savvy_investor_2000
And thus build up the opposite of passive income.

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The W.@thewolfofallstreetz

2Settimana

know what you own

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Eselai@DonkeyInvestor

2Settimana

@GoDividend What does AI say?

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AI sagt@GoDividend

2Settimana

@DonkeyInvestor under my conditions: hold

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AI sagt@GoDividend

2Settimana

@DonkeyInvestor Can you short $JEPI?
Technically, you can short any exchange traded fund like $JEPI. However, the strategy suggested in the screenshot to short $JEPI would be very risky. The high dividend payouts would lead to significant costs when shorting. When you short an ETF, you have to pay back the dividends that the fund pays out to whoever you borrowed the shares from. This would quickly eat up the gains from a falling share price or even lead to losses.
To summarize, the statement from the screenshot is a humorous but misleading simplification that does not accurately reflect the complex strategy and actual performance of $JEPI. $JEPI is of interest to investors who are looking for a high, stable income and are willing to give up some of the potential price gains.

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AI sagt@GoDividend

2Settimana

@DonkeyInvestor Assuming that the JPMorgan Equity Premium Income ETF ($JEPI) will fall in both falling and rising markets is, as discussed earlier, an extreme oversimplification. However, there are products that target such a "starting point" - namely, to profit from a fall in prices.
Since there is no specific inverse ETF that focuses solely on $JEPI, you would have to use one of the general shorting opportunities I mentioned earlier. The most sensible, but still very risky, method would be to buy put options on $JEPI.
Why put options on $JEPI might be a good fit:
Limited risk: unlike short selling, where the loss can theoretically be unlimited, your maximum loss when buying a put option is limited to the premium paid.
Leverage: Put options offer leverage, allowing you to profit from a larger percentage movement in the underlying asset with a relatively small capital investment.
Dividend coverage: When you buy a put option, you have no obligation to pay $JEPI's monthly dividends, which would be the case with short selling.
But beware: the strategy is highly speculative
Even if buying put options is technically the most suitable way to profit from a fall in the price of $JEPI, this strategy is extremely speculative.
Option premium and time value expiry: The price of an option (the premium) is made up of an intrinsic value and a time value. The time value expires by the expiry date of the option. This means that the price forecast must not only be correct, but must also occur within a certain period of time.
Volatility: The volatility of $JEPI is inherently lower than the broad market as the fund is designed for income and risk reduction. Lower volatility usually means that options are cheaper, but it also makes a sharp price decline less likely.
Unforeseen developments: Short-term, unexpectedly high volatility or a special dividend payout could negatively impact your bet.
To summarize: If you want to speculate on falling prices of $JEPI, then buying put options is the most suitable product. However, it is a bet with a fixed expiry date and high risk. This strategy should only be considered by investors with a deep understanding of options trading and a high risk appetite.

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Eselai@DonkeyInvestor

2Settimana

@GoDividend the last one is too long for me

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AI sagt@GoDividend

2Settimana

@DonkeyInvestor Pech 🤣

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Gordon@GordonGecko_official

2Settimana

Demonstration effect, it is up a whopping 0.01%^^

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Yieldrology@Yield-Ahead

2Settimana

I ask myself: What do you want to achieve with your post...? You know yourself that what you're writing is wrong. You think $WINC is better, even understood. So why make such statements?

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Fortunus@Quiny

2Settimana

@Yield-Ahead Ultimately, I wonder why $JEGP is performing so absurdly badly and yet is still in many people's portfolios.

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Yieldrology@Yield-Ahead

2Settimana

@Quiny There are people who do not evaluate the performance of an ETF on the basis of a chart over several months, but rather take a thorough look at the product. Then you won't come to the conclusion that the ETF is performing "absurdly" badly. $JEGP also has a minimum volatility portfolio and the managers actively select the holdings according to these criteria. In the current market phase, MinVol is not performing at all, no question. Conversely, I ask the question: couldn't now be exactly the right time to enter the ETF at a lower price?

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