Our Strategy

(Covered Calls Made Simple)

We use a time-tested method called a covered call to generate steady income for our investors. In simple terms, this means:

  1. We own strong, reliable stocks or ETFs.
  2. We rent them out, so to speak, by selling options. Other investors pay us a fee (called a premium) for the chance to buy our shares at a set price.
  3. We keep that fee as income — no matter what happens.

👉 Think of it as earning “rent” on shares we already own, while still benefiting from their growth.

How It Works

Step 1: Own quality assets – We start by selecting large, liquid, and stable companies or ETFs.

Step 2: Sell call options – We give another investor the right (not the obligation) to buy those shares at a fixed price for a limited time.

Step 3: Collect the premium – In exchange, we receive an upfront payment; steady income added to dividends.

Step 4: Outcomes:

If stock stays below strike → we keep the premium and the shares.

If stock rises above strike → we may sell at that price, but still keep the premium.

Why Big Investors Use It

Covered calls are widely used by pension funds, ETFs, and asset managers because they:

Generate reliable income even in sideways markets.

Provide a cushion in down markets.

Smooth returns compared to pure stock ownership.

Examples: JEPI and JEPQ, two of the largest U.S. funds using this approach, often deliver yields of ~8–11%. *

What Makes ARP Capital Different

Unlike index-tied funds, ARP Capital can be active and flexible:

Rotate into stronger opportunities when sectors or stocks look better.

Take profits when a stock moves up substantially.

Use leverage carefully to enhance returns where appropriate.

This flexibility aims to keep the steady income profile of covered calls while adding higher upside potential.

*Note: Yields are as of September 20, 2025, and are subject to change over time.

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Overview of Our Strategy

1. Select Assets
2. Write Calls
3. Collect Income
4. Manage Positions
5. Rotate
6. Reinvest or Distribute

Rules-Based Process

  1. 1.Select quality assets
  2. 2.Write covered calls
  3. 3.Collect premiums + dividends
  4. 4.Manage positions
  5. 5.Rotate actively
  6. 6.Reinvest or distribute income

Key Takeaways

Key takeaways illustration

Steady Income

Earn option premiums on top of dividends.

Risk Managed

Premiums cushion small declines.

Upside Capped

In rallies, upside is limited, but we balance via rotation.

Transparent & Trusted

A strategy used by large institutions, applied flexibly here.