Aug. 28 at 8:56 PM
Market linked CD (US) & Market linked GIC now coming to the ETF market -
$TJUL
TJUL caps upside (at launch) at +16.67% of the
$SPY & protects 100% of losses over the outcome period of 2 years. Note: You forgo
$SPY dividends & expense ratio cost of 0.79%.
Essentially, homemade version: put money in a 2-yr Treasury & calculate the interest to be earned & buy a call leap option.
Principal is secured by the Treasury & upside may be captured in the call option.
To add more yield sell calls against the leap (converts to a diagonal or calendar depending on the strike) and/or (w/ added risk) one can sell deep OTM puts (converts to a risk reversal or a Jane Lizard)