Post by
unc12345 on Nov 10, 2020 2:17pm
Quick math/comparison
Did a quick calculation with a similar ETF.
ZWB - Canadian Banks Covered Call ETF (from October 10, 2019), down 10.5%
PIC.A - Canadian Banks collection with a "proprietary" CC overlay (from October 10, 2019), down 44%.
Over 4X the drop. Hmmmm.....? If nothing is amiss, I'd love for someone to explain why. I do realize the market misprices things and it's all based on supply and demand, but this seems extreme to me.
Comment by
jammo71 on Nov 12, 2020 7:54am
I don't have an answer, but in looking at the two stocks above, ZWB only holds about 0.70% of the portfolio in the Call or Short position. I'm not sure what PIC is but if they generally have a higher Short position that could indicate higher risk and hence the delta in the price move. ZWB fact sheet PIC.A fact sheet