(for anyone who doesn’t live in options-land) A normal stock ETF: You own the stocks. Market up $10 → you keep $10. Market down $10 → you lose $10. Plus a little dividend. A regular covered-call ETF: Same stocks, but the fund sells “if it rips higher, you can have that extra bit” contracts. You get cash every month. You give up some of the rally. DayMAX does that idea differently. 1. They sell calls that die the same day Written in the morning. Dead at the close. ~250 times a year instead of 12. 2. They don’t sell calls on the main stocks $CDAY • Owns Canadian dividend champions ($CMVP) — no calls • Extra slice: S&P 500 ($VOO) • Sells same-day S&P 500 calls on that slice only $SDAY • Owns U.S. dividend champions ($SMVP) — no calls • Extra slice: S&P 500 ($VOO) • Sells same-day S&P 500 calls on that slice only $QDAY • Owns big U.S. tech ($QMVP) — no calls • Extra slice: Nasdaq-100 ($QQQM) • Sells same-day Nasdaq-100 calls on that slice only Why the U.S. index sleeve? Same-day options are liquid there. Not on the TSX names. 3. Overnight is uncapped Calls expire at 4pm. Gap up tonight? The whole fund keeps it. Most monthly covered-call funds stay sold overnight for weeks. House + parking-lot version The house = the dividend / tech stocks. Yours. No calls. The parking lot = the extra S&P or Nasdaq slice. Every morning they sell one-day parking passes and collect cash. After dark the pass is worthless. They borrowed a bit to make the lot bigger. More daily cash. Also more bounce on that lot. What you get Fat semi-monthly cheques (lately high-teens yield). Stocks that can still go up. 0.85% fee. What you give up A rip-roaring up day on that 25% index sleeve? Some of it got sold. Leverage cuts both ways. In a melt-up, a plain stock ETF can win on total return. In chop, the daily cash usually looks better. One line Own the good companies uncovered. Borrow a little. Sell today’s upside on a small S&P or Nasdaq sleeve. Get paid twice a month. Keep the overnight.
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24 Comments
Peaky PII @peakyblinders · 3d
I’m what you call a “Groupie” of Hamilton.. lol Honesty that was the fastest explanation I ever read of the Day series.. also very accurate. Love it .
Martin McClellan@star87 · 2d
Hamilton funds are the absolute best in Canada !
Bart @packofwolves · 2d
This is why I love CDAY & SDAY. Very innovative strategy by Hamilton. I wonder if other companies will come out with funds that adopt this strategy.
Peaky PII @peakyblinders · 3d
Nothing like some good old Day series.. it’s definitely a unicorn 🦄..
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