From Nasdaq: 2024-07-26 13:00:00

This week, Wall Street experienced a crash in tech stocks due to Alphabet Inc.’s earnings report and Tesla Inc.’s lack of details on self-driving vehicle efforts. The Nasdaq-100 lost $1 trillion in market capitalization, impacting AI technology leaders like NVIDIA Corp., Broadcom Inc., and Arm Holdings Plc.

Investors are concerned about the delayed payoff and high valuations of AI investments in tech stocks. While experts recommend maintaining tech exposure in portfolios with downside protection, the recent selloffs highlight the need for a covered call strategy. This strategy generates income and provides downside protection during market fluctuations.

Several covered-call ETFs, including Global X Nasdaq 100 Covered Call ETF, S&P 500 Covered Call ETF, and Roundhill N-100 0DTE Covered Call Strategy ETF, offer exposure to tech stocks with a strategy to mitigate downside risks. JPMorgan Equity Premium Income ETF also provides current income and capital appreciation opportunities through disciplined options overlay on the S&P 500 Index.

For more insights and top-performing ETF recommendations delivered weekly, sign up for Zacks’ free Fund Newsletter. Additionally, access free stock analysis reports on companies like NVIDIA Corporation, Alphabet Inc., and more through Zacks Investment Research. Consider covered-call ETFs like QYLD, JEPI, XYLD, and QDTE for investment opportunities in the current market conditions.



Read more at Nasdaq: Time for Covered Call ETFs?