Came across an article for this one today. I have been researching these in the last year as a place for me to park options money when I don’t have anywhere else to put it.
These types of funds pay out high percentage points because they are trading options on the underlying stocks they own. This one in particular, CHPY, holds many of the chip stocks that are big right now.
The flip side of most of the ones I have found is that they end up eating into their own cost basis(?)/nav because they have to sell the stocks if the options go the ‘wrong’ way. So you end up owning an ETF that effectivity is worth less just as it tries to keep paying out high yields.
Anyone study these from the perspective that they fall under options trading? Anyone got thoughts on this type of ETF?
I bought like $300 worth today just to keep an eye on it and force me to do more research. This one doesn’t seem to have the same cannibalizing setup/history as others.
