Bottom Fishing For A 20% Yield On Qualified Distributions

With the market making new highs every few minutes, we put on our contrarian hat and went bottom fishing for high yield vehicles. We found one with one of the highest yields available these days. The yield is 24%. This ETF is less than 1% above its 52-week low and is selling at its NAV. It solves a key income problem for IRA holders. This article will analyze the fund's underlying holdings and detail 2 trading strategies with actual trades. Investors receive a 1099 at tax time, no K-1.

InfraCap MLP ETF (AMZA) invests mainly in high yield MLPs, and further juices its returns by selling covered calls and cash secured puts. This probably sounds familiar to any visitors to our site - that's what we've been doing since 2009, selling options to enhance dividend/distribution yields. However, AMZA goes one step further, the fund also uses up to 30% leverage to further goose its returns.

Source: Seeking Alpha

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