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 Fri 4:16 PM ET):

NEOS Bitcoin High Income ETF (BTCI) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
35.26 +3.26 35.00 35.20 1.2M - 0.0
Covered Calls For NEOS Bitcoin High Income ETF (BTCI)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 35 0.55 34.65 1.0% 24.3%
Mar 20 35 1.80 33.40 4.8% 40.7%
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Extended Business Description

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.