Talk Your Book: The Psychology of Income

In this episode of Animal Spirits' "Talk Your Book," Michael Batnick and Ben Carlson interview Troy Cates, co-founder and managing partner of Nios Investments, about option-based income ETFs. They discuss how Nios differentiates itself in a competitive market by focusing on core asset allocations like the NASDAQ 100 and S&P 500, and offering tax-efficient income solutions. The conversation explores the trade-offs between upside potential and income generation, the growing popularity of these strategies among younger investors, and the level of downside protection these funds offer in bear markets. Troy explains the mechanics behind Nios' hedged equity income ETF (QQQH) and its put spread collar strategy, as well as the Bitcoin product (BTCI). He also provides advice for investors on how to evaluate option income ETFs, emphasizing the importance of looking at total returns and understanding the underlying holdings and tax efficiency.