CCF
Chase Corporation
stock NYSEAMERICAN

Just a question, since you mention that the income may be coming from the underlying asset versus option trading profits. I see that there is a column called "Income from Operations". How is that computed? How can a CCF ETF earn 'income'? For some of these funds, it obviously isn't their covered call portfolio.
It appears that this 'income' is used to fund distributions, and if there are profits from covered call trading, then great. Just use that instead.
I am extremely interested in SPYI, QQQI, and BTCI. But, this gives me pause.

I agree with your assessment. If a CCF ETF continues to generate losses in its covered call portfolio, it would put a tremendous strain on the overall fund. The underlying portfolio of the CCF ETF has to perform for all of this to work.
I can imagine a bear market ravaging the underlying portfolio, and while the covered call options may print money, I'm afraid it just won't be enough. I can see how NAV erosion may happen.
I characterize the recent CCF darlings as 'perpetual motion' funds as they seem to print out income every month with nary a NAV erosion in sight. There has to be something that derails the gravy train, right? Overall sustainability may be its Achilles heel.

Just a question, since you mention that the income may be coming from the underlying asset versus option trading profits. I see that there is a column called "Income from Operations". How is that computed? How can a CCF ETF earn 'income'? For some of these funds, it obviously isn't their covered call portfolio.
It appears that this 'income' is used to fund distributions, and if there are profits from covered call trading, then great. Just use that instead.
I am extremely interested in SPYI, QQQI, and BTCI. But, this gives me pause.

I agree with your assessment. If a CCF ETF continues to generate losses in its covered call portfolio, it would put a tremendous strain on the overall fund. The underlying portfolio of the CCF ETF has to perform for all of this to work.
I can imagine a bear market ravaging the underlying portfolio, and while the covered call options may print money, I'm afraid it just won't be enough. I can see how NAV erosion may happen.
I characterize the recent CCF darlings as 'perpetual motion' funds as they seem to print out income every month with nary a NAV erosion in sight. There has to be something that derails the gravy train, right? Overall sustainability may be its Achilles heel.