We are an Elite Options Mentoring and Trading Strategist Firm for retail traders.
Our mission is to take any trader, from any skill level, and maximize their ability to generate returns in any market, with the least downside risk possible.
With our 1-on-1 personal touch, we have a very high success rate with traders of all skill level, age, and profession, and have for many years!
You will not find a negative comment about our company anywhere online because we produce results.
" Don't Buy Any Trading Program Or Meet With A Financial Planner
Till You Hear This Free Recorded Message >>> Call 888-657-8466"
PAST PERFORMANCE IS NOT INDICATIVE FUTURE RESULTS. Futures, stocks, options and commodity trading has large potential rewards, but also large potential risk. You must e aware of the risks and be willing to accept them in order to invest in these markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures, stocks, commodities or options. You should be aware of all the risks associated with trading, and seek advice from an independent financial advisory if you have any doubts.
We are an Elite Options Mentoring and Trading Strategist Firm for retail traders. Our mission is to take any trader, from any skill level, and maximize their ability to generate returns in any market, with the least downside risk possible.
With our 1-on-1 personal touch, we have a very high success rate with traders of all skill level, age, and profession, and have for many years!
You will not find a negative comment about our company anywhere online because we produce results.
Check out this alert: From: Universal Investment Strategies <universalinvestmentstrategies2@gmail.com>
" Don't Buy Any Trading Program Or Meet With A Financial Planner
Till You Hear This Free Recorded Message >>> Call 888-657-8466"
PAST PERFORMANCE IS NOT INDICATIVE FUTURE RESULTS. Futures, stocks, options and commodity trading has large potential rewards, but also large potential risk. You must e aware of the risks and be willing to accept them in order to invest in these markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures, stocks, commodities or options. You should be aware of all the risks associated with trading, and seek advice from an independent financial advisory if you have any doubts
While exchange-traded funds (ETF) are convenient investment vehicles to pursue capital growth and diversification without the need to analyze and select individual stocks, income-seeking investors can benefit from a wide selection of high dividend ETFs.
Even though they have not existed as long as mutual funds, ETFs have some advantages. ETFs, unlike mutual funds, can be traded like stocks throughout a trading session.
Plus, ETFs have much smaller management fees than mutual funds. In addition, ETFs report changes to their holdings daily, whereas mutual funds are allowed by the Securities and Exchange Commission (SEC) to take 60 days after their quarter ends to file their holdings with the agency. Certain mutual fund companies choose to report their holdings more frequently, even as often as monthly. But reporting with such frequency requires much effort and significant costs.
Finally, ETFs can provide tax advantages compared to mutual funds. With minimal changes in underlying holdings, ETFs are less likely to trigger taxable events the way mutual funds do. Mutual funds with high holdings turnover can generate tax liability for the investors, even if the fund itself records a loss. ETFs are generally index-based and usually do not carry tax liability caused by holdings turnover.
While ETFs distributed dividend income from underlying equities since the beginning, specific funds focused on investing in high-dividend securities are widely available today.
This fund tracks the price and yield performance of the CBOE S&P 500 2% OTM BuyWrite Index (BXY Index). HSPX writes 2% out-of-the money call options, exposing the fund to any potential upside growth of the S&P 500 index. As an income source, the fund has paid distributions of up to 0.94% per month since its inception in 2013.
The fund hiked its annual distribution over the past three consecutive years and four out of the last five years. Additionally, the share price rose 25% since the beginning of 2016. The share price rose more than 7% in the first half of the trailing 12-month period and peaked above $52 in mid-December 2017. After encountering some volatility in early 2018, the share price dropped nearly 10% by the beginning of April 2018. However, the share price recovered and closed on July 5 at $50, which was less than 4% short of the 52-week peak from December 2017.
High Dividend ETFs for 2018: #6
ProShares Global Listed Private Equity ETF (NASDAQ:KBWY)
Dividend Yield: 7.04%
The ProShares Global Listed Private Equity ETF tracks the performance of the LPX Direct Listed Private Equity Index, which consists of up to 30 qualifying listed private equity companies. To qualify for the index, the equity company’s direct private equity investments must represent more than 80% of the company’s total assets.
As of June 29, 2018, the top three holdings – the Onex Corporation (TSX:ONEX) with 10.31%, the Ares Capital Corporation (NASDAQ:ARCC) with 10.29%, and 3I Group plc (LSE:III) with 9.5% – comprise 30% of the Index’s total holdings of nearly $9 billion.
Since a 21% loss in March, the share price recovered 70% of its losses and closed on July 5, 2018 at $36.51. The ETF’s current 7.04% yield is more than 16% above the funds five-year average yield of 5.9%.
This ETF tracks the performance of the TFMS HIPS 300 Index and has almost $7.8 million in assets spread across 299 individual holdings.
As of June 29, the fund’s top three holding accounted for almost 11% of total assets combined – Blackstone Group L. P. (NYSE:BX), 6.18%; Simon Property Group, Inc. (NYSE:SPG), 5.82% and Enterprise Products Partners L. P. (NYSE:EPD), 4.30%. The top 10 holdings account for more than 31% total assets. However, a full 80% – 240 out of 300 – of the fund’s bottom holdings are needed to equal a 31% share of assets.
Since its inception in 2015, the fund has paid a monthly distribution equivalent to an annualized amount of $1.29 per share. The share price has been trading between $16 and $18 over the past 18 months. Over the past 90 days, the share price has been trending upwards and has gained more than 8% since late March 2018.
High Dividend ETFs for 2018: #4
Global X SuperDividend® Alternatives ETF (NASDAQ:ALTY)
Dividend Yield: 7.67%
This ETF tracks the Indxx SuperDividend Alternatives Index and provides investors exposure to alternative investments, which include Master Limited Partnerships (MLPs), real estate, infrastructure, fixed income and derivative strategies.
The single largest holding with more than 20% of total assets is the Global X Superdividend RE (SDIV). The next two largest holdings by share of total assets – Eaton Vance T/M Buy-Write Fund (NYSE:ETV) and Eaton Vance Risk-Managed Fund (NYSE:ETJ) – account for just 2.7% each. While the top three holdings above account for more than a quarter of all the assets and the top 10 holdings combine for more than 43% of total assets, the bottom 10 of the 45 holdings account for less than 10.5% of assets.
The fund’s monthly distributions over the past three years have been fluctuating between $0.09 and $0.18. Additionally, the share price has been climbing again and has gained 4.1% since its 52-week low on March 23, 2018.
This fund seeks to invest in 30 of the highest dividend yielding REITs globally and tracks the Solactive Global SuperDividend REIT Index.
As of July 5, 2018, the top three holdings – Dream Global Real Estate (TSX:DRG.UN) with 3.77%, Redwood Trust, Inc. (NYSE:RWT) with 3.76% and Global Net Lease, Inc. (NYSE:GNL) with 3.75% – account for slightly more than 11% of total assets. The fund’s top 10 holdings account for a little more than 36% and the bottom 10 holdings total just below 30% of total assets.
The share price dropped almost 12% below its December 2017 peak to reach its 52-week low of $13.24 on March 1, 2018. However, the share price has embarked on an uptrend since its February bottom and closed on July 5, 2018 at $15.44, which was just 2% short of the 52-week high from December 2017.
The fund tracks the investment results of the FTSE NAREIT All Mortgage Capped Index –
an index composed of U.S. REITs that hold U.S. residential and commercial mortgages. As of July 5, 2018, 96.23% of the fund’s total assets were in Mortgage REITs, with remainder allocated in Diversified REITs (1.27%), Specialized REITs (0.46%) and the remaining 2.04% allocated in cash and cash derivatives. Annaly Capital Management REIT, Inc. (NYSE:NLY) was the single highest individual holding, 16.75%, with the AGNC Investment REIT Corporation (11.04%) and the New Residential Investment REIT Company (8.30%) rounding out the top three holdings.
After a 7% drop between its 52-week high of $47.45 in mid-October 2017 and its 52-week low of $40.58 February 8, 2018, the share price recovered almost half of its losses and closed at $44.42 on July 5, 2018.
High Dividend ETFs for 2018: #1
ProShares Global Listed Private Equity ETF (BATS:PEX)
Dividend Yield: 20.28%
The fund tracks the performance of the LPX Direct Listed Private Equity Index. As of March 29, 2018, 93.3% of the fund’s total assets were in Financials, 4.78% in Information Technology and 1.91% in other sectors. North American equities comprise 54% of total assets with European equities adding another 44% and the remaining 2% allocated to other countries.
The top third of the fund’s 30 holdings accounts for more than 63% of total assets. Conversely the bottom third of holdings account for less than 14% of the fund’s $18.8 million in assets.
While the fund raised its total annual distributions for the past three years, the majority of the fund’s yield increase from the 10.9% average over the past five years to the current 20.28% yield is due to a share price decline, more specifically a 14% one-day drop in late December 2017. The share price has been trading in the $35.50 to $36.50 range since the December drop and closed on July 5 at $36.13.
These seven high dividend ETFs focus on offering investors a source of steady income flow. Because investments with high dividend income and high capital gains are more difficult to find, investors should consider allocating a portion of their portfolio into high dividend ETFs and a portion into high capital gains funds or stocks. That strategy can yield a portfolio with balanced income and asset growth features, while allowing for a greater variety of equity selections.
A vertical spread is an option strategy where an investor buys an option while simultaneously selling an option of the same type with the same expiration date but at a different strike price.
Vertical spreads are useful to investors because they limit the risk involved in an options trade, but they also limit the profit potential.
From this article, investors will gain a basic understanding of the different types of vertical spreads that can be used in an investor’s playbook.
Vertical spreads can be created with either calls or puts and can be either bullish or bearish.
Bullish
The bullish vertical spreads are known as the bull call spread and the bull put spread. These spreads are designed to profit from an increase in the price of the underlying stock.
A bull call spread is when an investor purchases a call option that is “at-the-money” while simultaneously selling a call option with the same expiration date but at a higher strike price that is “out-of-the-money.” The potential profit from this strategy comes from owning the call option. Selling the other option reduces the cost for the option that is bought.
For example, assume a stock is trading at $20. An investor buys one call option with a strike price of $25 for a premium of $1 per share. Simultaneously, he sells one call option with a strike price of $27 for a premium of $0.50 per share. The total cost of the trade is $0.50 (1 – .50 = .50).
Assume the underlying stock moves to $28. Any movement above $27 is forfeited. Therefore, the total profit of this trade is $1.50 per share ((27 – 25) – .50 = 1.50).
A bull put spread is when an investor purchases a put option that is “out-of-the-money” while selling a put option with the same expiration date but at a higher strike price that is “in-the-money.”
The put option with the higher strike price is more expensive than the put option with the lower strike price. Essentially, the trader sells the more expensive put option to pay for the less expensive put option.
The investor hopes that both options expire worthless with the rise in the underlying security’s price. If this happens, his total profit is the premium paid to him for selling the put option minus the cost of buying the other put option.
Bearish
The bearish vertical spreads are known as the bear call spread and the bear put spread. These spreads are designed to profit from a decrease in the price of the underlying stock.
A bear call spread is achieved by purchasing a call option that is “out-of-the-money” while selling a call option with the same expiration date but a lower strike price that is “in-the-money.” The potential profit gained from this strategy is the premium received when selling the option minus the cost of buying of the other option.
A bear put spread is achieved by purchasing a put option that is “in-the-money” while selling a put option with the same expiration date but a lower strike price that is “out-of-the-money.” The potential profit gained from this strategy is the difference between the two strike prices, minus the total cost of the option.
For example, assume a stock is trading at $20. An investor implements a bear put spread by buying one put option contract with a strike price of $25 for a premium of $5 per share. At the same time, he sells one put option with a strike price of $20 for a premium of $2. At this point the investor is at a loss of $3 per share.
However, assume the stock closes below $20 at expiration. The investor will profit from the difference in strike prices, minus the total cost of the options. In this case, the investor will profit $2 per share ((25 – 20) – (5 – 2) = 2)
After looking at the descriptions of different vertical spreads, investors can see how they can profit from each. Investors should research each spread more specifically in order to get the best results possible when using these strategies.
Hope this helps...
Jay Johnson
Universal Investment Strategies
" Don't Buy Any Trading Program Or Meet With A Financial Planner Till You Hear This Free Recorded Message >>> Call 888-657-8466"
PAST PERFORMANCE IS NOT INDICATIVE FUTURE RESULTS. Futures, stocks, options and commodity trading has large potential rewards, but also large potential risk. You must e aware of the risks and be willing to accept them in order to invest in these markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures, stocks, commodities or options. You should be aware of all the risks associated with trading, and seek advice from an independent financial advisory if you have any doubts.
We are an Elite Options Mentoring and Trading Strategist Firm for retail traders. Our mission is to take any trader, from any skill level, and maximize their ability to generate returns in any market, with the least downside risk possible.
With our 1-on-1 personal touch, we have a very high success rate with traders of all skill level, age, and profession, and have for many years!
You will not find a negative comment about our company anywhere online because we produce results.
Options are cheap. Investors are paying almost the least they've ever had to for options on stocks and ETFs as volatility levels dip into record-low territory.
Case in point is the CBOE Volatility Index (VIX), which measures the "implied volatility" of S&P 500 Index options based on how much investors are willing to pay for them. The VIX is at rock-bottom levels.
According to the Chicago Board Options Exchange, out of all the days the VIX has fallen below 10 in its history, nearly half of those instances have taken place in 2017. A level of "10" on the VIX is rarely broken, but that has been a routine occurrence this year.
Seldom Been Cheaper To Use Options
Cheap options are either a good thing or a bad thing, depending on who you ask. For investors looking to hedge their portfolios against a market decline using put options, or for speculators interested in betting on more gains in the stock market using call options, it's seldom been cheaper to do so.
The opposite is the case for options sellers. They aren't getting much in the way of a premium for writing options contracts.
In any case, low volatility is certainly not a knock on the options market—which remains as active as ever—particularly when it comes to exchange-traded funds. Below, we look at the 15 ETFs with the most liquid options markets.
SPY Trounces IVV
Just as was the case last year, the SPDR S&P 500 ETF (SPY) has the most liquid options market of any ETF or even stock. The world's largest exchange-traded fund, with $237 billion in assets under management (AUM), currently has 17.8 million options contracts outstanding—also called “open interest” (each options contract gives the owner the right to 100 shares of the underlying ETF; the right to buy in the case of calls; and the right to sell in the case of puts).
Bid/ask spreads on SPY options are often no more than a penny wide, minimizing transaction costs for those who want to hedge or speculate on the S&P 500.
Even though SPY is the largest ETF and has the most liquid options market, that correlation doesn't always hold true. There are plenty of big funds with illiquid or even nonexistent options markets.
Take the $119 billion iShares Core S&P 500 ETF (IVV). The second-largest ETF by assets only has total options open interest of 2,640. That's nothing for a fund of that size. Bid/ask spreads for IVV options are huge, making the fund a poor choice for options traders.
Some ETFs Punching Above Their Weight
After SPY, the iShares MSCI Emerging Markets ETF (EEM) has the most deep and liquid options market. The fund boasts total open interest of 6.6 million contracts, just a hair above No. 3 on the list, the PowerShares QQQ Trust (QQQ), with open interest of 6.5 million contracts.
These ETFs have some of the most liquid options markets, even though they don't have a tremendous amount of assets. VXX, for example, only has AUM of $1 billion, while XOP has $2 billion in assets. That suggests these funds are popular with short-term traders—not a surprise considering that the VIX, oil, Brazil, gold miners and China are among the most volatile areas of the markets.
For a full list of the top 15 ETFs with the most liquid options, see the table below:
