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Our Purpose
At TappAlpha, we’re committed to unlocking financial opportunity for everyday investors. Our mission is to make advanced investing simple, actionable, and transparent using cutting-edge innovation and financial education.
Our Approach
Fintech-Powered ETF Innovation:
TappAlpha unveils a fintech-powered ETF with a daily covered call strategy on the SPY, marking a new era in combining technology with investment strategy. Cloud-based automation, AI, and analysis make arduous strategy implementation painless, reliable, and easy to run. This innovative approach aims to unlock capital appreciation and income opportunities, leveraging the latest fintech advancements for your benefit.
New Daily Covered Call Execution:
TappAlpha differentiates itself with a strategy that applies daily adjustments to covered calls, aiming to responsively capture income opportunities in dynamic market environments while conscientiously managing risk.
Simplified Investing:
TappAlpha demystifies sophisticated investment strategies, providing you with easy-to-use tools, enabling access to Wall Street-caliber opportunities for growth and income.
Transparent and Actionable Solutions:
Commitment to clarity and action is at the heart of TappAlpha. We ensure our investment solutions are transparent, making it straightforward for you to understand the strategies employed and the risks involved. This is key to supporting informed decision-making and enhancing your investment experience.
How it Works
Simple Steps
We leverage technology for:
Option Type: Decide on option tool to use - covered call or cash covered put based on underlying assets and duration.
Choose Underlying Assets: Select stocks or ETFs in line with core investing strategy.
Risk Management: Set risk tolerance and portfolio coverage, which impacts the interval for option position.
Market Review: Analyze the market conditions keeping an eye on calendar events to manage planned volatility spikes.
Identify Entry Points: Look for opportunities for entry to match fund risk profile.
Analysis: Understand risk vs. premium reward based on entry points identified.
Selling Options: Execute trades by selling call or put options based on platform's analysis. Focus on short dated options that expire within a day to collect daily premiums if available for the underlying asset selected.
Monitor Positions: Keep a close eye on open positions throughout the day. Be prepared to close or adjust positions based on market movement.
Profit and Loss Management: Set clear targets for taking profits and cutting losses and manage the position against those parameters.
Strategy Preparation
- Option Type: Decide on option tool to use - covered call or cash covered put based on underlying assets and duration.
- Choose Underlying Assets: Select stocks or ETFs in line with core investing strategy.
- Risk Management: Set risk tolerance and portfolio coverage, which impacts the interval for option position.
Market Analysis
- Market Review: Analyze the market conditions keeping an eye on calendar events to manage planned volatility spikes.
- Identify Entry Points: Look for opportunities for entry to match risk fund profile.
- Analysis: Understand risk vs. premium reward based on entry points identified.
Trade Execution and Management
- Selling Options: Execute trades by selling call or put options based on platform's analysis. Focus on short dated options that expire within a day to collect daily premiums if available for the underlying asset selected.
- Monitor Positions: Keep a close eye on open positions throughout the day. Be prepared to close or adjust positions based on market movement.
- Profit and Loss Management: Set clear targets for taking profits and cutting losses and manage the position against those parameters.
Resource Hub
Know How
White Papers
We leverage innovation and education to help investors confidently pursue their financial goals.
Frequently asked questions
The strategy revolves around selling covered call options. For every share of stock you own, you sell someone the right, but not the obligation, to buy that stock from you at a specified price (called the “strike price”) within a certain timeframe. By doing this, you receive a premium, which is income added to your account. If the stock’s price remains below the strike price by the option’s expiration date, you keep both the stock and the premium. However, if the stock price rises above the strike price, the option might be exercised, meaning you’ll need to sell your stock at that higher strike price, potentially missing out on some upside. TappAlpha provides tools and insights to help manage and understand these dynamics, ensuring you’re informed every step of the way. TappAlpha’s platform also assists with the similar strategy of executing cash-covered puts.
The main risk is forgoing potential upside gains. If your stock’s price rises beyond the sold call’s strike price before its expiration, you miss out on additional profits. While you don’t incur a loss, you do leave potential earnings on the table. The downside risk of owning the underlying shares still remains. TappAlpha aids in understanding this risk, ensuring decisions fit your risk tolerance.
Immediate Income:
When you sell a covered call option, you receive a premium upfront. This means direct and immediate income, regardless of whether the option is exercised or not.
Downside Protection:
The earned premium can offset minor stock price dips, acting as a financial cushion, and potentially preventing net losses on slight declines.
Enhanced Portfolio Returns:
Even in a stagnant market, where your stock remains flat, slightly increases, or slightly falls, the option premium you earn can boost your overall returns.
With TappAlpha, you can harness these benefits effectively and easily.
What they say about us
None of the customers listed received any form of compensation from TappAlpha for their endorsement. The following testimonial represents the experience of an individual client and should not be construed as a guarantee of future performance or results. Past performance is not indicative of future returns. Investing involves risks, and there is no assurance that any specific investment strategy will be successful.
Our firm appreciates the feedback from our valued clients, but it’s essential to recognize that each client’s situation is unique. The testimonials provided here are not intended to serve as personalized investment advice.
Before making any investment decisions, we recommend consulting with a qualified financial professional who can consider your specific circumstances, risk tolerance, and investment goals.
