Has anyone here tried Interactive Brokers' Stock Yield Enhancement Program and has first hand experience on the pros and cons/ risks?
After digging a bit into it I came up with the following:
Pros:
* extra income
Cons/ risks:
* for dividend stocks/ REITs, when the stock is not recalled in time before the ex date it may happen that PIL (payments in lieu) instead of dividend is paid. However, if I'm not mistaken tax wise this should not make any difference at least here in HK?
* potentially supporting the shorting of a stock you lend out
* borrowed stocks are not "protected" in case IBKR goes bust
Any feedback/ input will be much appreciated. Thanks!