Opinions
Larry Berman CFA, CMT, CTA
BMO US Put Write ETF
ZPW-T
BUY
Feb 03, 2025
$16.685
Stock price when the opinion was issued
E.T.F.'s
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
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COMMENT
He was a big fan of these put-write strategies--to write puts on the best companies on the market--when they launched, but they have since failed to execute this plan. He still holds these for the yields, though, because it provides an alternative source of yield. In a recession, it depends on how fast the markets go down. There is an embedded protection in these ETFs, giving you only half the downside. With these, you place a put, but don't own the companies, but rather harvest the yield off the option premium.
E.T.F.'s
DON'T BUY
Similar to a covered call, but it's the flipside. So it's the sell side. Most people don't understand how puts work, and with the put write you're getting a very complicated strategy. He'd recommend something more conservative, such as covered calls because they're a lot easier to understand.
E.T.F.'s
Is a put-write strategy. They sell puts to generate income on the market. Technical/chart analysis does not work, because most of the return comes from income. This ETF is meeting its goal, despite the down-up chart of recent years. There is also PUTW in the US worth looking at.