What most people don't know about JEPI
Everyone is talking about JEPI, few are talking about holding JP Morgan's Equity Premium Income ETF is a bad idea. That's because 80% of the "income" being generated by this active investment strategy comes from selling covered calls. They're not covered calls, they're equity linked notes ELNs, people will say. Correct. JEPI's fund managers don't log into Robinhood and sell covered calls all day. An ETF with $32 billion in assets needs to do things differently which is why they use ELNs to generate income which is actually a play on volatility. When we understand how covered calls work - they…
The skinny
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