Toll Booth Trading
Examples

Covered Call ETF Comparison

Side-by-side view of a covered-call ETF approach (e.g., NVDY) versus the Toll Booth covered call strategy.

Executive Summary

Toll Booth emphasizes a rules-based weekly call cycle with disciplined rolling logic designed to manage assignment risk while targeting theoretical income at the position level. The result is greater transparency and customization without implying or guaranteeing outcomes.

Side-by-Side Comparison

Attribute NVDY (ETF) Toll Booth Covered Call Strategy
Ownership of equities Fund holds positions You retain and control your own equity positions
Call cadence Defined by fund policy (often monthly or ruleset-specific) Weekly cadence emphasized; managed per-position
Rolling logic Managed at the fund level Rules-based, position-level rolling with explicit guardrails
Assignment risk management Fund-defined Per-position controls and gates; designed to reduce—not eliminate—assignment risk
Fees Fund expense ratio plus trading costs Transparent platform/service fees; trading costs apply; typically lower fee structure
Capital efficiency One-size-fits-all across the fund Higher capital efficiency for advisors through tailored overlays and workflows
Transparency Aggregate fund reporting Position-level visibility and decision traceability
Customization Index-wide; limited per-investor customization Strategy tailored to user preferences, risk tolerance, and holdings
Tax notes Fund-level distributions and timing You control lot selection and timing; consult a tax professional (not tax advice)

How It Works — Weekly Calls + Rolling

  • Weekly cycle: evaluate positions, select strikes/expirations, place covered calls, and monitor through expiry.
  • Rolling logic: rules-based thresholds (e.g., price moves, time decay, and risk indicators) trigger roll decisions.
  • Assignment-risk controls: guardrails aim to reduce assignment probability; risk cannot be eliminated.
  • Transparency: per-position actions and outcomes are visible to the user.

Why Toll Booth

  • You control your own equity positions.
  • Strategy is tailored, not index-wide.
  • No asset transfer required.
  • Higher capital efficiency for advisors.
  • Lower fee structure.

Risks and Disclaimers

Options involve risk and are not suitable for every investor. Covered calls can be assigned; guardrails may reduce but cannot eliminate assignment risk. Performance is not guaranteed. References to returns are theoretical and for illustrative purposes only. This content does not constitute investment, tax, or legal advice. Consult your professional advisors.

Weekly Flow

Process overview for weekly covered calls and roll decisions.

flowchart TD A[Start of Week] --> B[Screen positions] B --> C[Sell weekly covered calls] C --> D[Monitor price & risk] D --> E{Assignment risk elevated?} E -- No --> F[Hold/Manage to expiry] E -- Yes --> G[Roll: adjust strike/expiry] G --> D F --> H[End of Week / Reset]