Important Disclosure. This is a general solicitation under Regulation D Rule 506(c) of the U.S. Securities Act. For accredited and professional investors only. This page is informational and not an offer, commitment, or recommendation. Offers are made only by the final private placement memorandum and executed subscription documents after verification of accredited status.
Covered Call ETF Income Fund 506(c) for Accredited Investors
The fund seeks to pay monthly USD income by allocating to large, liquid covered call ETFs and applying clear rules for strike, tenor, hedging, and cash buffers. The aim is steady cash distributions while managing NAV drag over a full cycle. No outcome is guaranteed. Capital at risk.
Target profile. Income oriented, accepts equity and volatility risk, prefers transparent ETFs and daily liquidity at the underlying level, and values rule based execution.
Offering Snapshot
| Item | Summary |
|---|---|
| Exemption | Rule 506(c) general solicitation. Verification of accredited status required before any subscription. |
| Investor Eligibility | U.S. accredited investors as defined in Rule 501. Non-U.S. investors subject to local rules. |
| Strategy | High yield covered call ETF allocation with rules for strike bands, roll timing, collars or puts at drawdown triggers, and a small cash or T-bill buffer. |
| Distributions | Intended monthly USD distributions sourced from option premium and ETF payouts. Amounts vary by market conditions and may include return of capital. |
| Leverage | No structural leverage at the fund level. Derivative exposure is embedded in ETF holdings. |
| Liquidity | Subscription and withdrawal terms are defined in final offering documents. Fees and gates may apply. |
| Fees and Expenses | Management and performance terms set in the PPM. Investors bear ETF expense ratios, brokerage, and fund operating costs. |
| Tax | U.S. tax reporting as described in the PPM. Distributions can include return of capital. Individual tax outcomes vary. |
| Reporting | Monthly statement and risk summary. Periodic reviews available on request. |
What We Buy and How We Manage
Universe and Liquidity
Covered call ETFs on major indices and sectors with high average daily volume, tight spreads, and transparent methods. No thinly traded products.
Strike and Delta Rules
Systematic strike bands (for example 10 to 30 delta) adjusted for skew, macro events, and regime. Tighter bands in low vol. Wider when premia compensate for risk.
Tenor and Roll Discipline
Short tenors to capture time decay. Early rolls when carry decays or risk changes. Avoid illiquid expiries.
Hedging and Buffers
Collars or puts at pre set drawdown triggers. Small cash or T-bill sleeve to fund hedges and smooth distributions.
Position Limits
Single ETF exposure bands, sector caps, and liquidity screens by ADV and spread to control concentration and trading impact.
Transparency
Holdings, coverage ratios, roll logs, and realized versus implied variance checks shared in periodic reports.
Investment Process
The process is rules driven and documented. Changes to parameters are recorded with time stamps.
Key Risks
Equity and Volatility Risk
Covered call ETFs remain exposed to equity drawdowns and volatility regime shifts. Loss of principal is possible.
NAV Drag
Overwrite strategies can cap upside and erode NAV in grinding markets. Rules seek to manage, not eliminate, this effect.
Tracking and Liquidity
ETF tracking error, spreads, and market liquidity can impact results, especially during stress.
Counterparty and Operational
Broker, ETF issuer, and service provider risks exist. Errors and outages can occur despite controls.
Tax Treatment
Distributions may include return of capital. Tax outcomes depend on the investor. Consult a qualified advisor.
Regulatory
Rules can change for options, ETFs, or funds. Changes can affect costs, liquidity, or access.
Governance and Compliance
| Topic | Policy |
|---|---|
| Conflicts of Interest | Disclosed in the PPM. Trades are executed at market terms with best-execution procedures and allocation policies. |
| KYC and AML | Subscriptions subject to identification, source of funds checks, and sanctions screening. |
| Valuation | ETFs valued at closing market prices or approved pricing sources as described in the PPM. |
| Service Providers | Administrator, auditor, and custody arrangements disclosed in the PPM. Engagements may change. |
| ERISA | Acceptance of benefit plan investors is subject to plan asset rules and caps. |
| Transfers | Interests are restricted securities. Transfers require manager consent and legal compliance. |
How to Subscribe
Step 1 — Request Documents
Request the PPM, LP or LLC agreement, subscription booklet, and risk disclosures.
Step 2 — Verify Accreditation
Provide third party verification or documentation such as W-2s, 1099s, K-1s, brokerage statements, or a CPA, attorney, or investment advisor attestation.
Step 3 — KYC and AML
Complete identity checks and source of funds screening.
Step 4 — Fund
Wire instructions provided after acceptance. Capital calls and cutoffs are detailed in the documents.
Request 506(c) Offering Documents
Get the PPM, partnership agreement, subscription booklet, fee schedule, and risk disclosures. Only for accredited investors.
Email To Request PPMFAQs
Is income guaranteed?
No. The fund intends to pay income monthly, but distributions vary with option premia, ETF payouts, and market conditions. There is no guarantee.
Can distributions include return of capital?
Yes. Portions of distributions can be classified as return of capital. See tax disclosures in the PPM.
Will the fund use leverage?
No structural leverage at the fund level. ETFs may employ their own methods per their prospectuses.
What are the main costs?
Management and performance fees per the PPM plus ETF expense ratios, brokerage, and fund operating expenses.
Who can invest?
Only investors who pass accredited verification under Rule 506(c). Non-U.S. investors must meet local eligibility.
Where can I see holdings?
Holdings and coverage metrics are shared in periodic reports as permitted by the documents.
Disclaimers. This page is marketing material. It is not investment, legal, tax, or accounting advice. Past performance does not guarantee future results. Investing involves risk, including loss of principal. Distributions can vary and may include return of capital. ETF holdings introduce equity, options, liquidity, tracking, and counterparty risks. Any terms summarized here are qualified in their entirety by the final offering documents, which control. No offer or sale of securities is made in any jurisdiction where unlawful.
