Core Insights - Covered-call strategies are beneficial for income investors, providing returns regardless of market direction, with some funds yielding as high as 89% [2][5] Group 1: Overview of Covered Calls - Covered calls involve selling call options against stocks already owned, allowing investors to earn premiums while potentially selling shares at a predetermined price [4] - This strategy generates income in flat and down markets, making it appealing for income-focused investors [5] Group 2: Fund Analysis - **FT Vest Rising Dividend Achievers Target Income ETF (RDVI)**: Offers an 8.2% yield, focusing on dividend growers from the Nasdaq US Rising Dividend Achievers Index, but has shown underperformance compared to its index [6][8] - **FT Energy Income Partners Enhanced Income ETF (EIPI)**: Launched in 2024 with a 7.3% yield, actively manages covered calls on individual energy stocks, outperforming its energy benchmark [9][12] - **Global X Russell 2000 Covered Call ETF (RYLD)**: Provides a 12.1% yield, but has underperformed its index despite offering limited downside protection [11][14] - **YieldMax NVDA Option Income Strategy (NVDY)**: Features an exceptionally high yield of 88.9%, trading NVIDIA shares and selling calls, but sustainability of returns is questionable if NVIDIA's stock performance declines [15][16]

Core Viewpoint - The individual investor adopts a contrarian investment style, focusing on deep value opportunities, particularly in stocks that have recently experienced sell-offs due to non-recurrent events, while also considering insider buying as a positive signal [1] Investment Strategy - The investment portfolio is split approximately 50%-50% between shares and call options, indicating a balanced approach between equity and derivatives [1] - The investor's timeframe for holding positions typically ranges from 3 to 24 months, suggesting a medium-term investment horizon [1] - Fundamental analysis is employed to assess the health of companies, including their leverage and financial ratios compared to sector and industry averages [1] - Technical analysis is utilized to optimize entry and exit points, with a focus on support and resistance levels on weekly charts [1] Stock Selection Criteria - Preference is given to stocks that have undergone a recent sell-off, particularly when there is insider buying at the new lower price, indicating potential recovery [1] - The investor screens through thousands of stocks, primarily in the US, but is open to owning shares in less stable markets, referred to as "banana republics" [1] - Professional background checks are conducted on insiders who purchase shares post-sell-off to ensure credibility and alignment with shareholder interests [1]

Core Insights - The investor adopts a contrarian investment style, focusing on high-risk, illiquid options and shares, with a balanced portfolio of approximately 50% in each [1] - The investment strategy emphasizes buying stocks that have recently experienced sell-offs due to non-recurrent events, particularly when insiders are purchasing shares at lower prices [1] - Fundamental analysis is utilized to assess the health of companies, their leverage, and to compare financial ratios with sector and industry averages [1] - Technical analysis is employed to optimize entry and exit points, using multicolor lines for support and resistance levels on weekly charts [1] Investment Strategy - The investor's timeframe for holding positions typically ranges from 3 to 24 months [1] - A professional background check is conducted on each insider who purchased shares following a sell-off, ensuring due diligence [1] - The investor screens through thousands of stocks, primarily in the US, but may also invest in companies from less stable economies [1]

So if we do some quick math, we realize that XLK is going to be heavily influenced by those top 10 tech giants. But that also means there could be smaller stocks within this ETF that could have their own, individual bullish moves. It would not move the index ETF much. But if the stock is what one owns, not the ETF, that doesn’t matter.But XLK’s predicament in a technical fashion is not necessarily that of all of its component stocks. While it contains more than 70 large-cap tech stocks, just 10 of them acco ...

Core Insights - The investor adopts a contrarian investment style, focusing on high-risk, illiquid options and shares, with a balanced portfolio of approximately 50% in each [1] - The investment strategy emphasizes buying stocks that have recently experienced sell-offs due to non-recurrent events, particularly when insiders are purchasing shares at lower prices [1] - Fundamental analysis is utilized to assess the health of companies, their leverage, and to compare financial ratios with sector and industry averages [1] - Technical analysis is employed to optimize entry and exit points, using multicolor lines for support and resistance levels on weekly charts [1] Investment Strategy - The investor's timeframe for holding positions typically ranges from 3 to 24 months [1] - A professional background check is conducted on each insider who purchased shares after a recent sell-off to ensure credibility [1] - The investor screens through thousands of stocks, primarily in the US, but may also invest in companies from less stable economies [1]

Core Viewpoint - Michael Burry, known for his shorting strategy during the 2008 mortgage crisis, has taken a significant position against Nvidia and Palantir Technologies, purchasing $1.1 billion in put options, which may have influenced the recent decline in these stocks [2][9]. Group 1: Burry's Investment Strategy - Burry's fund, Scion Asset Management, manages nearly $1.4 billion in assets and is required to report holdings quarterly, providing a snapshot of a potentially dynamic portfolio [4][6]. - The nature of hedge funds allows for rapid changes in positions, and Burry's current holdings include put options in Nvidia and Palantir, alongside call options in Pfizer and Halliburton [7][9]. - Burry's strategy may not indicate a long-term bearish outlook on Nvidia and Palantir, but rather a tactical move to capitalize on perceived overvaluation or short-term price declines [10][13]. Group 2: Market Context and Stock Performance - Nvidia's current market capitalization stands at $4621 billion, with a recent price change of +1.68%, while Palantir's market cap is $415 billion, with a +1.00% change [8][12]. - Both stocks have experienced price declines recently, which may align with Burry's expectations of market pressure on these high-value stocks [9][13]. - The retail investor's perspective differs from institutional investors like Burry, who operate with distinct goals and strategies [12][14].

Small deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well ...

Drew Angerer / Getty Images News via Getty Images Quick Read Nvidia (NVDA) represents 20% of Pelosi’s portfolio. Her call options purchased in January 2025 are up 47%. Pelosi’s investment strategy has returned 858.58% since mid-2014 compared to 263.2% for the S&P 500. Alphabet (GOOGL) and Broadcom (AVGO) each comprise 15% of her holdings with gains exceeding 42% on recent trades. If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to rea ...

Core Viewpoint - The individual investor adopts a contrarian investment style, focusing on deep value opportunities, particularly in stocks that have recently experienced sell-offs due to non-recurrent events, while also considering insider buying as a positive signal [1] Investment Strategy - The investment portfolio is split approximately 50%-50% between shares and call options, indicating a balanced approach to risk and return [1] - The investor's timeframe for holding positions typically ranges from 3 to 24 months, suggesting a medium-term investment horizon [1] - Fundamental analysis is employed to assess the health of companies, including their leverage and financial ratios compared to sector and industry averages [1] - Technical analysis is utilized to optimize entry and exit points, with a focus on support and resistance levels on weekly charts [1] Stock Selection Criteria - Preference is given to stocks that have undergone a recent sell-off, particularly when there is insider buying at the new lower price, indicating potential recovery [1] - The investor screens through thousands of stocks, primarily in the US, but is open to owning shares in less stable markets, referred to as "banana republics" [1] - Professional background checks are conducted on insiders who purchase shares post-sell-off, adding an additional layer of due diligence [1]

Core Viewpoint - The article discusses a tax strategy for investors to manage their tax liabilities by doubling down on high-conviction stocks that have declined in value, allowing them to reset their cost basis and potentially reduce future tax burdens [2][4][5]. Group 1: Tax Management Strategy - Proactive tax management can significantly reduce the amount paid to the U.S. government, thereby increasing retained wealth [3]. - The strategy involves identifying underperforming stocks, purchasing additional shares, and holding both positions for 31 days to avoid the wash-sale rule [4][6]. - After 31 days, the original shares can be sold to realize a tax loss, while the cost basis is reset to the new purchase price [5][9]. Group 2: Application to Chipotle - Chipotle recently approved a $500 million stock buyback, but concerns about weak earnings and high valuations persist among investors [2][9]. - The stock has fluctuated between $38.30 and $66.74 over the past year, recently trading around $32 after a significant drop [9]. - Investors looking to reset their cost basis could consider buying a December $36 call option expiring in 2026, allowing them to potentially record a tax loss after 31 days [9][10]. Group 3: Risks and Considerations - The double-down strategy is best suited for high-conviction stocks that have faced temporary setbacks [7]. - Call options can be used as a lower-risk alternative to directly purchasing additional shares, although they do not provide dividends [8][10]. - If the stock does not recover and remains below the call strike price, the investment in the call option could be lost, but the financial risk is lower compared to buying shares directly [10].