Summary
- The REX Crypto Equity Premium Income ETF (CEPI) sells calls on 98.4% of its portfolio with strikes at or below the current prices of Mastercard, Visa and Tesla, so the fund captures almost none of a rally.
- The holdings have improved since launch, but 33.5% of the book trades at a negative or zero P/E and the option strategy overshadows the quality names.
- The fund has paid out $44 million more than it earned since inception, 100% of 2026 distributions are return of capital, and the weekly payout keeps trending lower.
- I rate CEPI a Sell; the distribution would need to come down to something closer to 12% before the fund is worth holding for income.
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Overview
Bitcoin (BTC-USD) has been trending lower, as it seems like the post-midterm selloff and volatility related to NVIDIA Corporation (NVDA) have started to spread across different areas of the market. This is
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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