This fund employs a covered call strategy on Nasdaq 100 holdings, generating income from options premiums in addition to dividends. Monthly payouts mimic paycheck timing but depend on market volatility and option execution. Options-based income can fluctuate more than regular dividends, exposing investors to variability in monthly distributions. The covered call approach also caps upside during bull markets, limiting capital appreciation potential. Distributions from options premiums are taxed as ordinary income, raising the effective tax rate above qualified dividend rates. After-tax income needs push gross distribution requirements higher, increasing required capital for a given net income target. The NEOS Nasdaq 100 High Income ETF offers a 14.30% annual distribution rate, meaning an investor needs approximately $419,000 to generate $60,000 in yearly payouts. This high yield significantly lowers the necessary capital compared to traditional 3–4% dividend funds.