Get Paid from the AI Power Boom Top Covered Call ETFs!

Welcome to my channel. I'm the Cover Call guy and my goal is to hit $120,000 per year in passive income using only cover call ETFs. Right now, I make about $70,000 a year and about $6,000 a month on my current portfolio. Legal disclaimer before we start this video. This content is forformational and educational purposes only and is not financial advice. I am not a licensed financial adviser or tax professional. All opinions are my own and may be incorrect. trading and investing involve risk, including loss of principle. Please always do your own research and consult a licensed professional before making any financial decisions. I am just some random idiot you found online. And I could be completely wrong. With that out the way, today's video is going to be on trying to trying to make as much money following this AI boom, right? The AI revolution is it's only going to get bigger. um it's only going to uh you know pretty much you you need the infrastructure here. So um you know what what follows the infrastructure electricity you know gas maybe nuclear anything and everything uh I made I kind of made a list of uh all all of the cover call utilities that could possibly try to capitalize on this AI boom. So let's get started. Right. The AI power nexus um is projected AI market value by 2030 is is going to be around 10 trillion. That's what they're thinking. A multi-t trillion dollar catalyst, right? The boom in artificial intelligence is not a digital shift. It's a physical one. Right? As AI models grow in complexity, the demand in processing power and uh con consequently electricity is set to explode. Right? There's already not enough power right now. The grid is failing and we need more electrical grid. We need more power. You guys can read this up on the news. It's like it's it's an everyday issue, right? People already complaining that the electric bill is going through the roof because all these data centers, it's not enough uh the grid is not um modern and not fixed and there's not enough of it to go around. So, we should be capitalizing. We should be looking about oh god, which this there's always some type of coverall ETF for something, right? So um this creates a massive multi-deade growth opportunity for the underlying infrastructure, data center, power plants, and utilities. We're going to be focusing on the utility part today cuz um there's a lot of um uh talks about data center, but not enough talks about uh utility. So I I want to do a video on something that's not talked about and kind of under the radar right now. Right. the problem uh soaring electricity demand as you can see 2024 it just it's expected to really jump up uh uh 2030 um to nearly double right AI electricity demand is projected to more than double by 2030 requiring a foundational buildout of new power infrastructure we got to get on this early we got to get on this ASAP right my strategy right and maybe your strategy income versus speculation right growth trap such as X XLU. Some investors chase pair growth, taking on full market risk and sacrificing all income. Um, I don't want that. This path misses the opportunity to moni monetize the sector's guaranteed volatility. So, what I'm going to use is XLUI. You can use XLUI to generate consistent income. Uh, this strategy lets you get paid from the sector's volatility, which gets which is the whole point of using cover ETS for this long-term trend, right? I I I don't think it's going away. I I don't they can be uh a little bit more power efficient, but you still going to need um electricity. It's not just AI, right? The growth of the population expands. You need more power. So, there's that. There's that play, too. All right. And just breaking down for those who are new, welcome to my channel. This is how recover call ETF works, right? Step one, buy a stock. The fund buys a basket of stocks such as all of the companies in XLU. Then it sells the call, right? The fund sells call options on these stocks obligating to sell if the price rises. And then it collects the income uh which is the premium right the is the cash and it pays it out to you which is four uh the which leads to four which is the trade-off in exchange for all um the income all upside potential of the options price is forfeited that is always a trade-off of cover call ETFs all right the 20 plus ETF reality check so about 6% is energy utility cover calls and and the rest is all others right the market for energy utility cover calls is a tiny fraction of the broader landscape. This is highly niche and underserved market which I think is very under the radar. Um, everyone regard not talking outside of AI, everyone needs electricity power of some sort, right? So, I think it's very very um underrated. It's not talked about enough and that is a good buying opportunity. Um, I I hope I selected the right ones. I hope I found the right ones. I hope I've put a list of um some great ones. If you guys have come across some utility plays that would could possibly kind of capture some of the AI boom, let me know. Um, I've just put this list together. I think this is probably going to be the ETFs that could capture um, you know, most of the AI plays. So, uh, this is it. This is my list and we're going to be rating it. We're going to be talking about it and see if you guys agree. Let me know. The first one is XLUI which is utilities. The pro of this is the that this is the most direct play. Uh you get paid income from the exact utility companies that provide uh that powers data center. The con is also is 100% upside cap. Uh you will miss out on explosive growth if the sector moons. This is purely an income play. So you got to do that trade-off. Um again there could be some nav growth but most of it will be income. Uh this this whole point is to get paid and live off of it. And then we have MLPD midstream. This is a oil and gas. Uh a smart pick and shovel play, right? You get income from the essential essential gas pipeline feeding the power plants. Cons indirect exposure less effective if the AI power boom shifts from uh primarily to nuclear or renewables bypassing natural gas. Then we have XLI energy. Uh the pro is that it offers broad energy sector income and is very liquid. However, the con is that it's too broad and unfocused, is dominated by oil and gas producers, not power generation, making it a poor fit for uh the AI power thesis. Right? So this they might be able to get some of it, but if if uh um if it's uh not a power generation, then they they might get nothing out of it. Then you have HUTL which is a global hybrid small hybrid design only 33% covered. This should keep most of the growth which is a big plus. Um however it's a Canadian listed. So um it's going to be uh higher fees I believe for you investors if you US investors if you want to buy it. uh utes is leverage pro leverage can amplify returns in a bull market and then that leads to the cons which is extremely high risk and also amplify your losses in a bare market right so um it is a tactical product it could be unstable and long-term income uh investment might not hold so that's the play there all right this is my uh AI income uh toolkit pros and cons right So um out of the three like I've I kind of mentioned before the utility the utility utilities play XL UI pro direct income on the um utilities uh getting the data center contracts however the I mean that's the pro the cons is that it caps 100% of the upside you miss the big rallies right in the midstreams of course this is the the pros that you get paid on the gas to power the power plants less crowded pick and shovel trade however the con is that it's indirect exposure, right? Um AI power shifts to nuclear or renewables and this is pretty much no good. And then of course the go uh global play right Hutl. The pros is that it's global diversification and a smart hybrid model which is only onethird of its portfolio is covered. So you can actually have some nav growth. However, consian listed so um some brokers might not even have it. All right, my verdict. If my ver if my thesis is valid, the AI boom is real and this will create a volatile long-term trend, which is the perfect setup for cover call uh income strategy because volatility is good for cover call ETFs. We love choppy markets. We love a a short burst of bull and then comes back down and does it again. Right? My verdict is that the top picks for US investors is going to be XLUI, MLPD. Um these two, right? Uh, XLUI is gonna be the most direct player on utilities power income and MLPD is the smartest and direct picks and shovel play. Um, I will be looking at these two. I don't know if let me know if anybody else has looked into this. Um, this will be fairly new on my radar also. So, I've just kind of put together some uh cover call ETFs that would be able to at least get a little bit of the crumbs. All right. not of of the AI boom. Um I I want to get my portfolio at at least one or two maybe 3% maybe in 5% into the AI um AI growth. So um we we can try to monetize it and I'm trying to look for something under the radar. I don't want to get something that's already mainstream because that may not also work out for um the cover call ETFs that that are not really talked about or the ones that may have the most potential. So, uh let me let me know what you guys think. Subscribe, comment, and like. I always appreciate it. Um leaving comments of whether you disagree or not, you agree. Um I I I I really appreciate all of the um the support and u heartwarming comments. Um, thanks for the motivation to push me to really make these videos. Um, all comments are appreciated whether they're hate, love, all comments are appreciated. Thanks for watching, guys. Catch you guys on the next. Stay tuned.