“If you put in 100 million won, you get 70 million won in dividends every year” Is it true? hot product

The ETF (Exchange Traded Fund) product, which allows you to receive high dividends of up to 70% per year by investing in Tesla’s underlying assets, has recently attracted the attention of Seohak ants. Although the stock price increase rate is not high, it is analyzed that it is attracting attention in the stock market where uncertainty has increased because it can generate stable cash flow.

According to the Korea Securities Depository on the 4th, in the past month (August 2 to September 1), domestic investors have invested in ‘YieldMax Tesla Option Income Strategy’ ( ticker: YieldMax Tesla Option Income Strategy ), an ETF listed on the U.S. stock market. TSLY ) was a net purchase worth $53.69 million (KRW 70.8 billion). It is the 8th largest net purchaser of foreign stocks during this period. TSLY is a product that pursues stable monthly income (dividend income) by using a covered call strategy with Tesla as the underlying asset. A covered call is a strategy of buying stocks and selling call options at the same time. When the price of the underlying asset rises, you can make a profit from the corresponding market profit, and even if the price of the underlying asset falls, you can make a profit from the premium for selling options. Buying began in earnest last July through word of mouth from domestic investors. As it became known that Tesla was used as an underlying asset and paid high dividend income every month, investor interest also increased rapidly.

In fact , TSLY has been paying dividends of $0.8 to $0.9 per share every month since January of this year since it was listed in November of last year. Dividends paid from January to August this year totaled $6.77. Assuming you invested in TSLY at the beginning of this year , based on the closing price on January 3 ($13.39), you would have earned a 50.56% return through dividend income alone.

If TSLY maintains the same level of dividends in the future, the dividend yield based on the closing price on the 1st ($14.41) will amount to 70% per year. If you invest 100 million won, you can expect dividends of 70 million won (pre-tax basis) every year.

The reason TSLY can pay such high dividends is the option selling premium. An option is the right to buy or sell a stock or index product at a specific price at a specific time. Covered calls use a call option selling strategy, so the higher the call option price, the higher profits you can earn.

The premium for call options increases as the price of the underlying asset rises and volatility increases. Tesla is a representative, highly volatile stock in the U.S. stock market. In particular, this year’s stock price fluctuated so much that it tripled in a short period of time from the low in January ($108.1) to the high in July ($293.34). Due to Tesla’s price rise and volatility, the call option premium was traded at a high level. The profits earned from selling call options were used as dividend funds.

However, as the covered call strategy uses option selling, caution is required as significant losses can occur if the underlying asset moves outside the expected range. When selling a call option, you earn a premium as profit if the stock price moves below the strike price, but if the stock price rises above the strike price, you incur a loss equal to the increase. Option selling strategies메이저사이트 theoretically have limited profits but unlimited losses.

TSLY uses selling 5% and 15% out-of-the-money call options. At this point, if Tesla’s stock price rises by 5% or 15% a month later, it is a profit. However, this year, Tesla’s month-on-month growth rate exceeded 15% four times, in January, February, May, and June, and it is estimated that significant losses exceeding the option premium occurred each time. This is why TSLY

‘s stock price growth rate this year is minus (-) 1.5%, which is a large difference from Tesla’s rate of return (98.9%) during the same period. Even considering the dividend yield, there is a significant difference from Tesla’s yield. Since the option sale premium is used as a dividend source, it should also be taken into account that if the option price falls, the dividend may be lower than before. Cho Seung-bin, a researcher at Daishin Securities, said, “As the covered call strategy is a strategy of selling options, performance may not be good in a phase where Tesla stock prices are rising sharply.” He added, “If you prefer some income in a situation where uncertainty about growth stocks is heightened, it is not bad. “It’s a strategy,” he said.

Leave a Reply

Your email address will not be published. Required fields are marked *