Thomas Faull/iStock via Getty Images Thesis Covered call ETFs have been the rage in the past year with eye-popping distribution rates and return profiles that made investors salivate. They are not all the same, though, and they do not always work. In today's article we are going to explore the YieldMax offering in the space for the Robinhood ( HOOD ) stock and show investors why they are better of...
Thomas Faull/iStock via Getty Images Thesis Covered call ETFs have been the rage in the past year with eye-popping distribution rates and return profiles that made investors salivate. They are not all the same, though, and they do not always work. In today's article we are going to explore the YieldMax offering in the space for the Robinhood ( HOOD ) stock and show investors why they are better off just buying the stock outright in this particular case. What Are Covered Call ETFs Supposed to Do? In an ideal structuring and volatility world, a covered call ETF purely serves as an instrument to extract dividends from an underlying index or stock. The 'perfect' covered call ETF has a total return profile very much correlating 1:1 with the underlying index or stock. Unfortunately, there is no such thing as a 'perfect' covered call ETF, although some of the ones pertaining to the S&P 500 Index ( SPX ) come close: Total Returns (YCharts) We have covered some of the names in this chart before, but the correlation is very high, both on the upside and on the downside. The NEOS S&P 500 High Income ETF ( SPYI ) and Goldman Sachs S&P 500 Premium Income ETF ( GPIX ) come close to being 'perfect'. By now investors will probably have understood how the graph of a good covered call ETF should look. Also note that the more volatile a stock or index, the harder it is to create a covered call ETF. Robinhood is a very popular stock with very high volatility. Given its popularity, ETF managers have created a covered call ETF for it, but it does not quite work. Let's see. What Is HOOY Supposed To Do? Let us start by looking at the fund objective as presented on their website: The YieldMax® HOOD Option Income Strategy ETF ( HOOY ) is an actively managed ETF designed to generate weekly income by selling call spreads on Robinhood Markets Inc (HOOD). By writing call spreads, HOOY seeks to systematically harvest option premiums from HOOD’s volatility, striving to turn it into a weekly income ...
Optimism in AI trading makes a strong comeback: NVIDIA (NVDA.US) surpasses the $5 trillion market cap milestone, as Wall Street signals increased allocation to infrastructure. 富途牛牛
Optimism in AI trading makes a strong comeback: NVIDIA (NVDA.US) surpasses the $5 trillion market cap milestone, as Wall Street signals increased allocation to infrastructure. 富途牛牛
Vietnam is importing more liquefied natural gas at elevated prices as the Iran war curbs global supplies, with the country bracing for above-average temperatures in the coming weeks. The next two weeks are forecast to be hotter than normal in the Southeast Asia country, with swathes of anomalous warmth of up to 3C above average blanketing much of the north and parts of the south, including Hanoi a...
Vietnam is importing more liquefied natural gas at elevated prices as the Iran war curbs global supplies, with the country bracing for above-average temperatures in the coming weeks. The next two weeks are forecast to be hotter than normal in the Southeast Asia country, with swathes of anomalous warmth of up to 3C above average blanketing much of the north and parts of the south, including Hanoi and Ho Chi Minh City, according to the European Centre for Medium-Range Weather Forecasts. Temperatures are also expected to be slightly above normal in May and June, according to the weather model. The country has imported about 276,000 tons of LNG so far this month, according to ship-tracking data compiled by Bloomberg. That’s already a monthly record and more than double the amount in the same period last year. April shipments also far surpass volumes in the preceding months, like the 70,000 tons bought in March, the data showed. Meanwhile, data from Kpler shows Vietnam importing 191,000 tons so far in April, also higher than any previous month. Thailand and Singapore have also been buying LNG from the spot market, but Vietnam has seen the most notable increase in imports among its Southeast Asian neighbors. State-owned Petrovietnam Gas JSC has issued tenders for several spot cargoes in the past two months for delivery through June. It most recently sought to purchase a prompt April cargo on Thursday. Vietnam is among several nations urgently seeking LNG at a time when spot prices have surged due to the conflict in the Middle East. With top producer Qatar’s capacity hobbled by Iranian strikes and the effective closure of the Strait of Hormuz — through which a fifth of global supply passes — the market for the super-chilled fuel is seeing greater competition between Europe and Asia for limited cargoes. Read More: Pakistan Rushes to Buy LNG From Spot Market to Ease Gas Shortage Other countries, including Indonesia and India are also expected to see unseasonal warmth in the ...
Don White/iStock via Getty Images Earlier in April, Pembina Pipeline ( PBA ) provided an update on its business outlook through 2030. I covered the stock in February, and since then the stock price has actually remained stable. That is not the price performance I am looking for in a buy-rated name, and I also noted that the stock price underperformed the broader financial markets. In this report, ...
Don White/iStock via Getty Images Earlier in April, Pembina Pipeline ( PBA ) provided an update on its business outlook through 2030. I covered the stock in February, and since then the stock price has actually remained stable. That is not the price performance I am looking for in a buy-rated name, and I also noted that the stock price underperformed the broader financial markets. In this report, I discuss the growth outlook and update my expectations for Pembina. Pembina Pipeline Targets Mid-Single-Digit CAGR on EBITDA Pembina Pipeline EBITDA growth guidance (Pembina Pipeline (business update)) Pembina is targeting fee-based EBITDA to improve from $3.93 billion to $5.175 billion, or 32% growth, through 2030, equating to a CAGR of 5%-7% annually. Increased utilization of existing assets will grow 4% annually, projects under development will grow 6% annually with 7% for other projects. The main driver of total growth is higher volumes and sanctioned projects followed by projects under development. This should bring EBITDA per share to $8.25-$8.90. The company expects take-of-pay EBITDA contributions to be 65%-70% in 2030 compared to 75% in 2025, with 20% fee-based EBITDA compared to 15% today and 10%-15% commodity exposed compared to 10% today. I would rather have seen take-or-pay remaining at 75%, because it is equivalent to a capacity lease whether capacity is utilized or not. Fee-for-service is dependent on the volume flowing through the system providing volume upside opportunities but also leaves the company somewhat exposed to volume fluctuations. The company is building its strategy from a 3Cs framework: Capture: Expanding in top-tier resource basins. Connect: Link hydrocarbons to domestic and global markets. Catalyze: Build solutions for new demand areas such as data centers. The company is positioning itself for global energy demand growth as an integrated wellhead-to-market solutions provider in Canada, with Canada positing itself as an energy superpower. Pe...
Hayek, Orwell, And 'The End Of Truth' Authored by Jonathan Miltimore via Civitas Institute , In 1942, after fighting in the Spanish Civil War (1936–1937), a disillusioned writer returned to London to write about his experience. It wasn’t just that the fascists in Spain had won and his side—a small, anti-Stalinist Marxist group—had lost. What frightened him was the ease with which truth itself had ...
Hayek, Orwell, And 'The End Of Truth' Authored by Jonathan Miltimore via Civitas Institute , In 1942, after fighting in the Spanish Civil War (1936–1937), a disillusioned writer returned to London to write about his experience. It wasn’t just that the fascists in Spain had won and his side—a small, anti-Stalinist Marxist group—had lost. What frightened him was the ease with which truth itself had been erased and replaced by propaganda. “ I saw great battles reported where there had been no fighting, and complete silence where hundreds of men had been killed. I saw troops who had fought bravely denounced as cowards and traitors, and others who had never seen a shot fired hailed as the heroes of imaginary victories ... and I saw newspapers in London retailing these lies and eager intellectuals building emotional superstructures over events that had never happened .” The writer was George Orwell, and the quote appears in his book “ Looking Back on the Spanish Civil War .” The disconnect between reality and narrative clearly made an impression on Orwell, who worried that “the very concept of objective truth is fading out of the world.” The theme of falsified history and the destruction of truth would resurface in his fictional masterpiece “Nineteen Eighty‑Four,” where “memory holes” swallowed inconvenient facts and the past was rewritten to suit the Party’s needs. Orwell’s book would go on to sell 25 million copies worldwide, and he is today remembered as a prophet for foreseeing a future in which the state’s deliberate power could extinguish truth itself. Yet few today remember that five years before the publication of “ Nineteen Eighty‑Four ,” an Austrian economist, in his own magnum opus, explored how the state destroys truth. Management of Minds Unlike George Orwell, Friedrich Hayek (1899–1992) is not a household name, but his 1944 classic “The Road to Serfdom” made him one of the twentieth century’s most influential thinkers—despite the book’s inauspicious beginnin...