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Response to progree (Reply #11)

Fri Dec 3, 2021, 07:40 AM

12. My learning curve has been far too long

and I should have used index funds, or the generic funds I was in decades ago, as part of my strategy!

A good covered call fund goes up and down with the market, and of course has dividends from its holdings. It also writes calls against what it owns, or against an index, and uses that inflow to increase dividends. Some are leveraged, some not. Some have REITS, which complicate capital gain reporting I think, and some not. Some payout principal as part of monthly payments. Once I've eliminated the levered, REITS, and principal payout, it's not a large universe. But they're not mutual funds in the sense of available from the big mutual fund companies, at least as far as I know. Some of those have call writing as an option, a notice in the prospectus, but it's not a primary techique they use often. (But how would we know? They'd have to tell us, or I'd really have to scour an annual report, and it's not my expertise.) So yeah closed end funds and ETFs is a thing for a brokerage account. They yield well, and when they plunge in a market panic, the yield goes way up, on paper, and they bounce back fast for that reason. That's when I want to pounce.

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