HAKY combines cybersecurity stock exposure with a covered call overlay to generate income from what's typically a growth-oriented, volatile sector. It's designed for investors who want cybersecurity exposure but are willing to cap upside potential in exchange for regular income distributions.
How It Works
The fund holds a portfolio of cybersecurity companies while systematically selling call options against these positions. The covered call premiums are particularly rich in cybersecurity stocks due to their high volatility, allowing the fund to target meaningful income generation. The strategy typically sells monthly at-the-money or slightly out-of-the-money calls, harvesting time decay while maintaining sector exposure.
Key Features
- Targets 4%+ yield from a sector that typically pays minimal dividends
- Captures cybersecurity volatility premium through systematic option selling
- Provides defensive income cushion during tech sector drawdowns
Risks
- Caps upside at 2-5% monthly in strong rallies, missing cybersecurity's explosive growth potential
- Cybersecurity stocks can drop 30-40% in tech selloffs, overwhelming option premiums
- New fund with no track record - actual income generation and tracking unproven
Who Should Own This
Best suited for retirees or income-focused investors who want tech sector participation without the full volatility ride. Also works for those who believe cybersecurity is essential but overvalued near-term. Not appropriate for growth investors who want to capture the sector's full upside potential during AI-driven security spending booms.