Stock of the Week

12 Nov 2024 - Investing

This is the second Stock of the Week post, for the week of November 10, 2024. In my Stock of the Week posts, I discuss a security (stock or ETF) that I am currently buying or selling, and will explain my rationale. These are trades I am personally making, so you will either make money with me or lose money with me by entering these trades (ideally the former). Financial Disclaimer

Stock of the Week

The Stock of the Week this week is $RDTE, which represents the Small Cap 0DTE Covered Call Strategy ETF by Roundhill Investments. With the election win of Donald Trump, Small Cap stocks are in a prime position for growth, thanks to lower taxes and a looser governmental regulatory environment. Rather than trying to pick and choose the specific stock/s I think will benefit the most, I would rather invest in an ETF that provides exposure to the Small Cap Index of the Russell 2000. $RDTE sells out-of-the-money 0DTE (0 days till expiration) calls to provide weekly dividend income. These sold calls are Covered Calls, meaning they own the underlying security, providing exposure to the price return of the Russell 2000. $RDTE has a %31.61 Dividend Yield (Roundhill Investments), and is currently up %9.5 YTD since inception on September 10, 2024. I will be buying $RDTE and slowly increasing my position over time on down days.

Today would also be a good day to take advantage of the dip and buy $TSLY - YieldMax TSLA Option Income Strategy ETF - if you have the funds to spare. The $TSLY ETF has a Dividend Yield of %74.26 according to Nasdaq.com. I currently have a substantial position of $3000 in this ETF and will not be buying more today.

Additional Resources

• Small caps could outperform by more than 100% in the next few days, says Fundstrat’s Tom Lee - CNBC Television
• Small caps an ‘opportunity’ under Trump, expert says - Yahoo Finance
• AMZN, ASML, Small Caps: Names to Watch Into 2025 - Schwab Network