We expect income generating potential of QYLD to stay stable but are bearish on the market overall, expecting volatility to persist for some time, and longer term treasuries to decline with inflation related actions ahead.
Therefore, we have put together a simple automated strategy that rebalances frequently (checking on hourly basis)
The portfolio is generally long on QYLD and VXZ, and short on TLT
Mix of holdings are adjusted programmatically to optimize returns (by spotting and exploiting “spikes”, e.g. VIX pop, or ExDiv/event blips in TLT/QYLD) while minimizing risk of drawdown
A novel way to generate income in the strange, and unprecedented, yield environment we are in.
Typically, we think of a bond as a risk-free return asset, but these days it feels more like a return-free risk asset.