In this current era of whiplash volatility, investors are forced to engage in a daily tug-of-war between the excitement of the next market rally and the fear of another devastating drawdown.
The actively managed fund, TappAlpha SPY Growth & Daily Income ETF (NASDAQ:TSPY), is designed to straddle the tightrope between capital protection, income, and growth.
TappAlpha CEO Si Katara chatted with Benzinga about having a specific strategy, rather than guessing the stock market.
At its essence, TSPY has dollar-for-dollar exposure to SPDR S&P 500 (NYSE:SPY), the well-known S&P 500 ETF that’s frequently a bedrock of long-term portfolios (and even Warren Buffett‘s go-to passive play). But TSPY incorporates a next-gen spin: a daily options overlay designed to create reliable, tax-effective income — even in volatile markets.
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The Middle Path Between FOMO And Fear
TSPY is somewhat of a middle-ground for investors stuck between fear of missing out and fear of losing everything,
“We stay fully invested in the S&P 500 every day, while seeking to add a consistent income engine that works in both calm and choppy markets,” Katara said.
Recent turmoil, such as the April 9 market shock, has tested those income and risk-management capabilities. Within a mere 10 days of that occasion — when President Donald Trump suddenly paused tariffs for most countries while simultaneously raising them on China — TSPY made its first hedged trade.
Katara insists that the trade was made possible only by the fintech infrastructure they’d developed behind the scenes.
“To help manage that kind of risk, we've added tools like credit spreads and protective puts,” he explained, adding that It’s not a matter of moving fast, it’s about moving smartly.
Risk Management Without Handcuffs
To shield investors from market swings, TSPY employs credit spreads and protective puts — tactical tools used selectively. ". The long call in a credit spread limits how much the fund can give up if the market suddenly spikes. The protective put does the same on the downside — acting like insurance during sharp drops," Katara explains. "These tools help us stay steady in turbulent markets without taking on more risk than we're comfortable with."
This degree of active management, day in and day out — strike choice, signal tracking, minute-by-minute adjustment — is all done on a rules-based, structured platform. “TSPY is actively managed every single trading day — we're dynamically selecting strikes, monitoring signals, and making adjustments based on data that's presented throughout the trading day,” he explained.
Trade-Offs And Target Investors
Sure, there's a trade-off — TSPY caps some upside to fuel its income engine. But for many, it's a fair exchange. "It's about getting more from your core S&P 500 exposure. We hold SPY dollar-for-dollar, just like Warren Buffett recommends for long-term investors.”
“Then we overlay a next-gen daily options strategy using 0DTE calls. The aim is to add meaningful, tax-efficient income and lower beta — without sacrificing market participation. In certain conditions, it can even help investors keep pace with or potentially outperform the index. The result: a steadier, smarter way to stay fully invested while putting your capital to work every day," Katara noted.
So, who’s the perfect investor? Katara sums it up: “Someone who believes in long-term equity growth but wants their capital to work harder every single day. It's a great fit for investors who value tax-efficient income, prefer consistency over big swings, and aren't chasing the stock of the week.”
Whether investors utilize TSPY as a new foundation holding, a substitute for half of their income sleeve, or merely as the “SPY with benefits,” its adaptable design and disciplined approach seek to make it better than another ETF in a sea of competition.
As Katara puts it: “Some call it their ‘AND’ fund — SPY exposure…and tax-efficient income…and lower beta. Others see it as a ‘Next Gen SPY,’ built for today's markets. However you frame it, TSPY is designed to flex across a wide range of portfolios.”
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