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LQD - LQDW: Not The Best If Expecting Extreme Outcomes
iShares iBoxx $ Investment Grade Corporate Bond
2024-05-01 18:00:25 ET
Summary
LQDW is a covered call strategy based on writing calls on the LQD while also going long.
It's not too bad if you expect downside in the LQD, though it still faces downside risk.
It's not great if you expect a decent amount of upside or more in the LQD.
In general, we feel there are a lot of outstanding macro questions and it's a fat-tailed environment and wouldn't go with a covered call strategy in light of that.