I Invested In TSLY for 6 Months Using Margin Here are the Results... High Dividend Investing

Описание: #tsly #tesla #investing #margininvesting #buildwealth
In the video we discuss investing in TSLY for the last six months, the distribution , performance and some stock commentary.

By investing in TSLY(covered call ETF through YieldMax) it is supposed to build a stream of income by using covered call option investing. The fund TSLY buys calls a couple months out(5-15% out of the money) and sells weekly calls to generate premium. Investing in a fund like this would be advantageous during a flat or bull market. Investing in a covered call strategy is something I have done before and have made consistent income. Investing in TSLY makes option investing easier due to the work of rolling the covered calls is outsourced to the fund manager. This allows a hands off approach preventing you from making emotional decisions. The Decisions are being done by a professional fund manager. Also I like my free time and constantly watching the market waiting for any swings in price to manage positions is just not worth my time. Another advantageous point is it is much easier to scale investing in a fund vs individual stocks and then selling calls against them.

The key pillar for implementing the income strategy is to invest in a fund that distributes more than you can borrow. In this case the fund distributes 60% a year and I can borrow money at 8%. By using margin I am essentially able to build another stream of income by utilizing my overall portfolio value as the foundation.

With the excess distributions after accounting for taxes, expenses, and reinvestments, could be utilized to invest in other high quality funds, reinvestment in the current fund as well as just spending the money on whatever you deem right.

This strategy increases your risk but utilized in small amounts can potentially offer some great returns. I'm using only 5% of my overall portfolio value in margin to implement this strategy. Overall for the time being the income from the fund is covering expenses. The income is quite substantial for a dividend/ income fund. There is not much reported gain and actually are at an overall loss from a performance perspective. Currently it is too early to tell if this is a viable strategy going forward to build a side stream of income from your overall portfolio. We won't see any feasible results until 10 years down the road according to some of the calculators I ran. As of right now we will continue the experiment and continually acquire real world data and no arm chair data.

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