Eyeing ETF flows ahead of this week’s Fed meeting

>> WE LOVE FREE. >> WELCOME BACK TO THE HALFTIME REPORT. I'M DOMINIC CHU WITH YOUR ETF. EDGE BONDS ARE BACK IN FOCUS WITH A HARD TO PREDICT EARNINGS SEASON AND AN EVEN HARDER TO PREDICT FED DECISION THIS WEEK. JOINING ME NOW IS CHRISTIAN MAGOON, CEO OF AMPLIFY ETFS. THE ODDS ARE SAYING WE'RE GOING TO HOLD PAT. BUT THERE'S A LOT OF DEBATE AROUND IT. CHRISTIAN WHAT EXACTLY ARE THE BOND MARKETS TELLING YOU RIGHT NOW ABOUT JUST WHERE TO BE WITH REGARD TO FIXED INCOME? >> YEAH, IT'S REALLY INTERESTING. THERE'S MAYBE ABOUT A 35% CHANCE OF A RATE CUT HERE COMING UP THIS WEEK, PROBABLY MORE LIKELY NEXT MONTH, I THINK FROM 80% CHANCE THE MARKET IS PRICING IN. YOU KNOW, WE REALLY THINK A COUPLE OF WAYS TO LOOK AT THIS ARE MAYBE LOOKING AT BOND ETFS THAT HAVE COVERED CALLS BAKED INTO THEM. SO YOU CAN ACTUALLY IMPLEMENT A COVERED CALL STRATEGY ON A BOND ETF. WE HAVE SEVERAL ETFS THAT ACTUALLY DO THIS IN TREASURIES AND INVESTMENT GRADE AS WELL AS HIGH YIELD. SO YOU CAN OWN THESE BOND ETFS LIKE HYG, LXD, TLT, BUT HAVE AN AUTOMATIC OPTION INCOME WRITING STRATEGY THAT BOOSTS YOUR INCOME AND HEDGES AGAINST MAYBE SOME OF THE RATE CUTTING UNCERTAINTY THAT COULD COME BE COMING DOWN THE PIKE HERE IN THE NEXT MONTH OR SO. >> AND CHRISTIAN, JUST HOW RICH ARE THOSE OPTION PREMIUMS RIGHT NOW THAT YOU CAN MAYBE WANT TO CAPTURE SOME OF THE UPSIDE BY SELLING SOME OPTIONS ACTIVITY AND COLLECTING SOME OF THAT INCOME, JUST HOW RICH ARE THEY RELATIVE TO WHERE THEY HAVE BEEN? >> YEAH, THEY'RE QUITE RICH ACTUALLY GIVEN THE VOLATILITY. SO YOU KNOW WE'RE TARGETING ON OUR TLT ETF A 12% YIELD FOR THAT TLT OPTION WRITING PRODUCT. AND THEN LQD LCDM IS OUR OTHER TICKER INVESTMENT GRADE QUALITY TARGETING 12%. AND THAT'S OPTION INCOME PLUS INTEREST INCOME. SO SOME OF THESE ETFS YOU CAN GET 2 TO 3 TIMES THE ACTUAL UNDERLYING ETF YIELD BY USING THIS OPTION INCOME STRATEGY AND THEN HEDGE ALONG THE WAY AGAINST THIS UNCERTAINTY. SO FAIRLY RICH WE THINK FOR INCOME INVESTORS. >> ALL RIGHT. AND ONE LAST POINT BEFORE WE LET YOU GO. IS THERE A SPECIFIC PART OF THAT KIND OF RATES OR CREDIT COMPLEX THAT SEEMS THE MOST ATTRACTIVE OUTSIDE OF SOME OF THESE OPTION STRATEGIES? >> WELL, YOU KNOW, OVERNIGHT CASH RATE, THE SOFR RATE IS QUITE ATTRACTIVE IF YOU WANT TO SIT OUT ALL THIS DRAMA, YOU KNOW, SOFR IS HARD TO ACCESS UNLESS YOU'RE AN INSTITUTION. BUT WE HAVE THE ONLY SOFR ETFS, SSOFR AS THE TICKER, YIELDING 3.6%. NOT BAD FOR AN OVERNIGHT DURATION PLAY. YOU CAN SIT OUT SOME OF THIS DRAMA AND WAIT FOR THINGS TO KIND OF UNFOLD. >> ALL RIGHT. CHRISTIAN MAGOON AND AMPLIFIED, THANK YOU VERY MUCH. WE ARE GOING TO CONTINUE THIS CONVERSATION OVER@ETF.CNBC.COM. CHRISTIAN IS