Eric NuttallNinepoint Energy Income Fund ETFNRGI-NEBUYJan 21, 2026
Recently increased distribution to 14%. The fund is using a modest amount of leverage of 15% to own high-dividend-yielding stocks with a covered call overlay. They sell 30% of each position at the money. If the stock goes up, they get called away, buy it back, but gather very healthy premiums in the meantime.
They've just finished writing the first tranche, and are over-earning the distribution. This provides an attractive income stream.
If you're looking for capital appreciation, there's the NNRG fund instead.
In January, he changed the strategy to generate more income. It's the same basket of high-yielding stocks, but they write calls "at the money" on only 1/3 of the position. To date, the strategy is over-earning. Not ROC. Yield is 12-ish%.
Recently increased distribution to 14%. The fund is using a modest amount of leverage of 15% to own high-dividend-yielding stocks with a covered call overlay. They sell 30% of each position at the money. If the stock goes up, they get called away, buy it back, but gather very healthy premiums in the meantime.
They've just finished writing the first tranche, and are over-earning the distribution. This provides an attractive income stream.
If you're looking for capital appreciation, there's the NNRG fund instead.
Disclosure: Eric's firm runs these funds.