Nasdaq Income Without the Megacap Risk: How JEPQ Caps Your Upside for Monthly Cash

JPMorgan’s Nasdaq Equity Premium Income ETF (JEPQ) delivers monthly income by selling out-of-the-money Nasdaq-100 call options, with 2026 payouts ranging from $0.47 to $0.59, but caps upside when the index rallies past strike prices. Over one year, the call overlay cost investors about 7 percentage points versus QQQ, reducing total returns. The fund holds megacap Nasdaq-100 stocks like NVIDIA (7.3%) and Apple (6.4%), which provide stable dividends.