Why Tech Paychecks Are Bigger
Option premiums are priced based on volatility. Tech stocks (Nvidia, Tesla, AMD) are more volatile than utility stocks.
Because the Nasdaq-100 moves more than the S&P 500, QQQI can generate higher premiums (and thus higher yields) than its sibling SPYI. Currently, QQQI yields about 200 basis points more than SPYI.
The QQQI vs JEPQ Battle
Just like SPYI vs JEPI, the Nasdaq battle is between QQQI (NEOS) and JEPQ (JPMorgan).
| Feature | QQQI (NEOS) | JEPQ (JPMorgan) |
|---|---|---|
| Yield | ~14% | ~9-10% |
| Tax Strategy | Section 1256 (60/40) | Ordinary Income |
| Income Source | Index Options (NDX) | ELNs (Equity Linked Notes) |
When to Buy QQQI
QQQI fits perfectly into the "Growth Engine" of an income portfolio. If you are retired but worried about inflation, you need assets that can grow their NAV over time. Historically, the Nasdaq provides that growth.
However, be warned: When tech crashes (like 2022), QQQI will crash with it. The yield helps cushion the blow, but it won't stop a 30% drawdown.