I had another fantastic week with just over $95 dollars in beer money income. The majority came from the SerpClix monthly payout and reverse stock split arbitrage. I stayed fairly conservative and bought 2 more shares of DIVO. This brought my overall yield down, but hopefully it provides more stability and growth in the long run through diversification. I think once I reach $100 dollars a month in passive dividend income for a few months then I may go even more conservative in my stock purchases to provide even more stability and growth in the long term.
Despite that, I had about $20 dollars left over and, having heard about these new options ETF’s from YieldMax, I figured I’d do an experiment. It’s one of those things where you know intuitively it’s not going to work in the long run, but I figure one share for $20 dollars is not going to hurt even if it goes to zero. There’s no way the yield is sustainable. $20 dollars to get almost a $1 dollar return each month is crazy. Essentially, the YieldMax ETF’s perform an options strategy for you without having to manage it yourself, but the expense ratio is high. I bought NVDY which uses Nvidia as the underlying company or stock. At best I’ll make a little money and at worst it will be an example of what not to do. It’s so new it’s only 3 months old. In any case, I’m only going to purchase 1 share and leave it at that.
Speaking of experiments, I also consider JEPI an experiment at this point as it’s fairly new and performs some fancy financial footwork, but uses ELNs instead of options. So at the very least there is more diversification in my assets and how they provide income, but I expect a few of these to go by the wayside over the years or at best stay flat.