How Safe Are These 8-12% Yields?

Covered call funds have become incredibly popular in the past few years, notably with JEPI growing from zero to $40 billion in just four years. In this interview with covered call expert Garrett Paolella from NEOS, we tackle the biggest questions about this asset class: Do they really underperform the underlying index over the long term, and how do they perform in flat and down markets? We also dive into the mechanics, exploring who buys the options you sell, and what happens to a fund's income and value, during a prolonged crash like the 2008 Global Financial Crisis.

➡️ Join Armchair Insider to receive my Portfolio (it's free): https://armchairinsider.beehiiv.com/s...

❤️ Love Income Investing? Check out our Community:
https://armchairincome.link/insider

✏️ LINKS FROM TODAY'S EPISODE:
➡️ BLACK FRIDAY SALE:
30% OFF Snowball Dividend Tracker
Ends: November 3, 2025
https://armchairincome.link/snow

➡️ BLACK FRIDAY SALE: Seeking Alpha Premium
$299 → $239/year ($60 off) + 7-day free trial
Ends: Dec 10th (end of the day EST)
Link: https://armchairincome.link/SeekingAlpha

➡️ Daily Income News, BDC & Preferred Share Coverage from ADS Analytics (Exclusive $27 Rate):
https://armchairincome.link/systematic
=======================================
Timestamps:
00:00 Introduction
00:58 Is it safe to put your retirement assets into covered call funds?
02:15 Why have covered call funds become so popular in recent years?
05:32 Why not just buy the underlying index and sell shares?
06:48 In which markets do covered call funds outperform?
13:28 How did you handle the April 2025 tariff selloff?
17:30 Some funds rebounded better than others after the tariff selloff
17:51 Who's buying the call options that you sell?
20:20 Could you offer higher yields?
20:53 How do you determine the yield range for each fund?
22:39 How would a covered call fund do during a 2008 GFC like crash?
29:35 How large do ETF's need to become to make a profit?
32:39 What happens to investors when an ETF shuts down?
34:15 When the small ETF's outperform their larger competitors
37:15 Which new income funds are you coming out with next? (Non-US and ETH)
=======================================
🤓 DETAILED INFORMATION:
✅ Seeking Alpha:
My #1 source of income investment information. I've been a subscriber for more than 7 years and my favorite feature is the collection of analysis articles for any given stock or fund.
https://link.seekingalpha.com/R42XQZ/...

✅ Snowball Portfolio Tracker:
Keep track of your stocks, ETFs, CEFs, MLPs, etc in one easy-to-use place. View upcoming dividend payouts, daily/monthly/yearly income. Subscribe to the Free Account, and the 10% Discount will appear: https://armchairincome.link/snow

(or enter "armchairincome" for the Promo Code)
------------------------------------------------------
The information on this Youtube channel and the resources available, are for educational and informational purposes only, and should not be construed as financial advice. No information provided by the channel should be considered as a recommendation that any particular security or investment is suitable for any specific person. Always do your own research before investing. Some links provided above may be associated with affiliate programs. If so, use of those links will not incur any additional cost to the user (and will, in many cases, provide a benefit to the user) and may result in a referral commission to this channel. Examples of companies with affiliate links offered on this channel include Snowball, and Seeking Alpha. The content of this channel represents the presenter’s opinions, which may not reflect those of the companies with which the channel has an affiliate relationship. If any episodes on this channel are sponsored, there will be a verbal disclosure during the video, and a written disclosure in the description of that video, identifying the sponsor.

All opinions and views mentioned in this video or corresponding reports constitute our judgments as of the date of publication and are subject to change at any time. Information within this material is not intended to be used as a primary basis for investment decisions and should also not be construed as advice meeting the particular investment needs of any individual investor. Trading signals produced by Armchair Income are independent of other services provided by Armchair Income or its affiliates, and positioning of accounts under their management may differ. Please remember that investing involves risk, including loss of principal, and past performance may not be indicative of future results. Armchair Income, its members, officers, directors and employees expressly disclaim all liability in respect to actions taken based on any or all of the information provided here.
AI music made by Suno
#armchairincome #seekingalpha #snowball #ad #IncomeInvesting #HighYieldInvestments