These are exchange-traded products that utilize options strategies – such as covered calls or put selling – to generate income.

By collecting premiums from selling call and put options and paying a return on the cash held linked to benchmark rates.

• Generating consistent monthly income through option premiums
• Potentially reducing portfolio volatility and downside risk compared to holding the underlying stocks directly
• Providing an alternative source of returns in a low-yield environment 

This involves buying a stock or commodity exposures and selling call options on those securities. By selling the calls, the ETP forfeits some of the upside potential on the underlying assets – but receives a premium payment in exchange. This can generate additional income for the ETP to distribute to investors.

This involves selling put options on a stock or index. When the put options are exercised, the ETP is obligated to purchase the underlying stocks at the strike price. The premiums collected from selling puts provide income for the ETP to distribute to investors. 

The premiums collected from selling options are paid out as distributions to clients on a monthly basis.

The team uses a combination of market analysis, asset selection criteria, and options pricing models to determine which options to sell to balance income generation with risk management.

While options-based ETFs can generate income, they also carry certain risks, such as: 

• Capping the upside potential if the underlying stocks rise significantly
• Potential losses if the underlying stocks decline in value and put options are exercised
• Higher volatility compared to holding the stocks directly 

The ETPs charge a management fee, which covers the costs of managing the product and executing the options strategies. Specific fee details can be found in the prospectus.

There may be other costs such as trading fees or expenses related to the underlying assets, brokerage commissions, spreads, etc.

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