NEOS Bitcoin High Income ETF (BTCI) Covered Calls
The NEOS Bitcoin High Income ETF is an actively managed fund that seeks to provide high income and exposure to the price performance of Bitcoin. The fund utilizes a multi-pronged strategy, including direct investment in spot Bitcoin ETPs and a synthetic covered call strategy using options contracts. It is designed for investors who want to participate in the Bitcoin market while benefiting from a tax-efficient income stream generated by harvesting option premiums.
You can sell covered calls on NEOS Bitcoin High Income ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for BTCI (prices last updated Thu 10:35 AM ET):
| NEOS Bitcoin High Income ETF (BTCI) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 33.94 | -0.37 | 33.91 | 33.94 | 147K | - | 0.0 |
| Covered Calls For NEOS Bitcoin High Income ETF (BTCI) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Mar 20 | 34 | 0.20 | 33.74 | 0.6% | 24.3% | |
| Apr 17 | 34 | 0.10 | 33.84 | 0.3% | 3.0% | |
| Subscribers get access to the full covered call chain, and more features. | ||||||
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NEOS Bitcoin High Income ETF (BTCI) is a yield-focused investment vehicle designed to offer Bitcoin exposure while prioritizing cash flow and tax efficiency. Unlike many of its peers that rely solely on futures or synthetic positions, BTCI employs a hybrid approach that integrates direct spot ETP ownership with a sophisticated options overlay.
Core Strategy and Operations
- Hybrid Exposure Model: The fund achieves its objective by investing in a combination of spot Bitcoin ETPs, such as iShares Bitcoin Trust and VanEck Bitcoin ETF, and options on Bitcoin futures. It uses a "synthetic" long position—combining long call and short put options—to replicate the price action of Bitcoin while maintaining liquidity.
- Income Generation: BTCI generates income primarily by selling (writing) call options. The management team utilizes an active, rules-based model to select strike prices and expiration dates, aiming to harvest premiums while retaining potential for capital appreciation during Bitcoin bull runs.
- Tax Efficiency Focus: A hallmark of the NEOS suite is the use of Section 1256 contracts and tax-loss harvesting strategies. This approach is intended to classify a portion of distributions as Return of Capital (ROC) or long-term capital gains, potentially offering a more favorable tax profile than standard income-only vehicles.
Distribution and Performance
BTCI provides regular distributions to shareholders, sourced from its derivative overlay and underlying holdings. Unlike high-frequency weekly models, BTCI adheres to a traditional monthly distribution schedule. This makes it a preferred choice for investors who prefer a steady income cadence alongside their digital asset exposure.
Competitive Landscape
BTCI operates in the competitive "Bitcoin-plus-yield" category. Its most direct competitors are the Roundhill Bitcoin Covered Call Strategy ETF and the YieldMax Bitcoin Option Income Strategy ETF. For investors seeking pure, unleveraged Bitcoin exposure without an income overlay, the iShares Bitcoin Trust remains a primary reference. BTCI is often paired with other NEOS income products like SPYI and QQQI to create a diversified, high-yield portfolio.
| Top 10 Open Interest For Mar 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA covered calls | 6. | QQQ covered calls | 1. | CTMX covered calls | |
| 2. | SLV covered calls | 7. | EWZ covered calls | 2. | S covered calls | |
| 3. | EEM covered calls | 8. | FXI covered calls | 3. | RCAT covered calls | |
| 4. | SPY covered calls | 9. | GLD covered calls | 4. | USO covered calls | |
| 5. | IBIT covered calls | 10. | KWEB covered calls | 5. | ONDS covered calls | |
Want more examples? BTC Covered Calls | BTE Covered Calls
Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.
Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.
