QYLD: Why A High Nasdaq 100 Volatility Index Is A Good Thing

  • I maintain a hold rating on QYLD, noting that high implied volatility in QQQ boosts dividend yields through larger option premiums. QYLD has underperformed the S&P 500, returning 8.3% in the past 15-plus months, but remains a safer play amid market volatility. The Nasdaq 100's high volatility and lower valuations for the Mag 7 suggest QYLD could benefit from its covered call strategy.