Mike PhilbrickTesla (TSLA) Yield Shares Purpose ETFYTSL-ORISKYJan 21, 2025

Covered writing on ~50% of the portfolio, using about 25% leverage. Monthly distributions; hasn't seen a move to bimonthly, but it would be fine. Don't be fooled by the headline-advertised yield. Keep your position small.

Kudos to managers, as this ETF is up ~10% more than TSLA itself.

Puts on a covered call options strategy to extract some extra income out of TSLA. He has some general thoughts on this and similar products. Why are you investing in TSLA? You're investing in it for growth. If you really believe in TSLA, why do you want to give up that growth by putting a covered call on it? Go to the stock itself to play it for maximum growth.

But at this moment, he hates the value of TSLA, grossly overvalued. Probably worth half or less than what it trades at today. He wouldn't touch it with anybody's money.

New thing that's come out, a single-stock ETF that you write options on. No diversification. You collect the premium from the options (which can be very good), but it's for people who want more risk. Not for him.