Animal Spirits Podcast Talk Your Book: Option Income Is So Hot Right Now
9 snips
Jul 14, 2025 Garrett Paolella, Co-Founder and Managing Partner of NEOS Investments, joins to discuss the booming demand for income-focused investment strategies, especially among retirees and younger investors. They dive into leveraging index options for maximizing returns and the innovative Bitcoin high income ETF. The conversation highlights effective risk management, the appeal of options in generating consistent income, and the importance of education in navigating these strategies. Insights on how to survive bull markets while managing volatility are also explored.
AI Snips
Chapters
Transcript
Episode notes
Tax-Efficient Income via Index Options
- NEOS focuses on generating tax-efficient income using index options, especially on the NASDAQ 100.
- Index options get taxed 60% long-term capital gains and 40% short-term regardless of holding period, offering a tax advantage.
Younger Investors Seek Passive Income
- Younger investors, including those in their twenties, are adopting option income products seeking passive income.
- Monthly income is attractive even to non-retirees who want alternative income sources outside their main jobs.
Consistent Monthly Income Targeted
- NEOS smooths out distributions by targeting a consistent monthly yield despite market volatility.
- This approach allows investors to rely on stable income instead of fluctuating payments like other products.