“The best two contiguous days on average for the stock market over long-term, are the day before and the day after Thanksgiving. From 1950 to 2013, the two days combined have produced an average cumulative gain of 0.7% and has been positive 84% of the time. In addition, the TSX Composite also has a very strong track record of producing a gain on the Thanksgiving holiday,” according to Thackray’s 2015 Investor’s Guide.
Investors looking to put on a more conservative Thanksgiving trade with income-generating potential should consider the Horizons S&P 500 Covered Call ETF (NYSEArca: HSPX), the covered call equivalent of a basic S&P 500 index ETF.
While HSPX is at its best in down or sideway markets, remember this: Investors are favoring standard low volatility ETFs, but HSPX is actually less volatile than explicit “low vol” funds. [Use This ETF When Volatility Rises]
Additionally, HSPX has credibility as an ETF for income investors. Last month’s spike in volatility juiced options yields, enabling HSPX to pay a dividend of 25 cents per share. That work’s out to be 6.65% on an annualized distribution yield basis. HSPX also pays its dividend monthly, not quarterly. [ETFs for Monthly Dividends]
Horizons S&P 500 Covered Call ETF
