The service is limited to accredited and qualified investors in the US. To qualify, an individual investor must invest at least $1 million or have a net worth more than $2.1 million. If you meet the criteria, the minimum investment is $100,000.

If you own stocks or ETFs you plan to hold for a while, you can earn extra income on those holdings instead of letting them idle in your portfolio.

You can earn an extra 2%/year on your holdings. For example, if you have $1 million in Apple stock you can get an extra $20,000/year. Rates may change over time based on the market and published on this page.

The Premca Extra Income Fund LP is a Delaware limited partnership. Unlike a typical fund where investors put in cash, stocks are contributed instead.

Premca’s name comes from “Premium Capital.” To get income we sell options and collect premiums. Extra buying power enables us to run our proprietary strategy. If you're unfamiliar with options, it's a large market. Total premiums exceeded $222+ billion for the month of August 2021 according to The Options Clearing Corporation .

Just as there are stocks that are lower risk and ones that are higher risk, the same is true of options. Since our objective is to earn extra yield, we pursue lower risk strategies not speculative ones.

Our approach has demonstrated success for over two years since inception. We use qualitative sources and quantitative models to identify companies that meet our screening criteria. Ideal candidates are quality companies with attractive volatility premiums and disqualifying candidates may be highly speculative or offer low premiums.

Risk management is an important part of our strategy. Leverage levels are managed with ample buffer. For those who want more detail on leverage mechanics, see the example here.

Also at any given time, the portfolio consists of multiple positions to diversify risk. Furthermore, positions are scaled in and right-sized in an effort to achieve positive returns without excess risk. Rolling or accepting assignment may be used to manage certain positions. Stop losses also may be used to limit positions from going too far in the unexpected direction.

Yes, we have excess capital reserves at a separate bank. If our strategy is unable to make an extra income payment in a period, these reserves would be used.

All securities activities involve risk, some of which are identified below. More extensive and specific language is available for review in the offering documents which cannot be posted publicly due to securities regulations.

• Risks of Investing In Securities. The price of equity securities and other instruments in which the Partnership may invest may be affected by factors affecting securities markets generally, such as real or perceived adverse economic conditions, supply and demand for particular instruments, changes in the general outlook for corporate earnings, interest rates or adverse investor sentiment generally.

• Liquidity risks. If markets are particularly volatile or disrupted for any reason, the Partnership could have difficulty selling any investment at a desirable price.

• 
Risk of default or bankruptcy of certain third parties, including one or more brokerage firms.

• Specialized investment program. The Partnership is designed to serve as part of an overall investment program for sophisticated investors willing and able to assume the capital risks inherent in securities investing and trading. 


• Leverage. If the Partnership purchases securities or futures on margin, then a small change in price may result in a loss for the Partnership that exceeds the margin deposited with the broker.

• Options Generally. For example, the seller of an uncovered put option assumes the risk of a decline in the market price of the underlying security below the exercise price of the option.

The unique program was setup in consultation with legal and industry experts. Your assets are securely stored at a reputable prime broker. For visibility, you are sent monthly statements and interest to your bank account. If you want to check more frequently you can have read only access. Finally, we partner with independent tax and audit firms to verify financials and send you Form K-1 following the end of each tax year.

You can redeem anytime. Electronic transfers typically take less than 5 days to process though can vary by broker. So the service is not a good fit for positions you want to frequently trade or exit soon. You will receive the same number of shares put in, adjusted for any splits.

Decide what assets you want to earn extra income on and contact us below. After we confirm eligibility, we send you documents to digitally sign. Then you request your broker to move assets to our Fund. Once your assets arrive with us you start earning extra income.

Other than the extra income you can earn, there are other compelling reasons to take a long view. For one, a long term holding period can generate substantial gains that compound over time instead of trying to time every market move. Also, many securities held more than a year are taxed at a lower capital gains rate compared to ordinary income. Finally, you also save on transaction costs if you are not frequently trading.

If you have stock that pays dividends, those amounts automatically accrue and are paid out or reinvested.

All extra income is paid out monthly.

Taxable stocks and ETFs are eligible. Equities less than $10/share may not be eligible. Stocks that you intend to frequently trade or may want to sell soon are not a good fit for the service.

Many Wall Street firms have a long standing practice called "securities lending" to secretly lend shares behind the scenes and give investors no compensation. Those that do compensate investors only do so for limited securities that are in high demand by short sellers, whose interests are opposed to yours as an owner. Unlike these approaches, Premca offers all investors the opportunity to earn extra by tapping into the hidden buying power of their long term portfolio.

No, this does not trigger a taxable event since you are not selling or diversifying. Many investors with large unrealized gains are in no rush to sell and do not want to trigger unnecessary tax liabilities. The extra income you receive is likely taxable though you should consult with a tax specialist on your unique situation.

Email us info@premca.com or fill out the contact form to setup a call or zoom.