Frequently asked questions
Common questions about how Income Factory works, what covered calls are, and what to expect. If yours isn't here, email hello@incomefactory.ai — we read every message and we'll add the question if it's a common one.
Getting started
What does Income Factory actually do?
Every Friday, you get a one-page email covering every stock in your portfolio — illustrative covered-call analyses on the holdings that have something actionable that week, and status updates on the rest. Most weeks, most of your holdings need nothing from you. You read the email, place the trades you agree with at your own broker, and we track the results.
Do I need to know options to use this?
You should understand what a covered call is before you place one. Beyond that, we explain everything in plain English. The first step is reading the 5-minute overview; if that makes sense, you're ready.
How do I try it without committing?
Use the estimator. Tell us what stocks you own; we'll show you what your portfolio could earn. No account required, no payment required.
What kind of portfolio works best?
Income Factory works best on portfolios of dividend-paying stocks, broad-market ETFs, and stable large-caps that you want to keep owning. It works less well on speculative growth stocks where you'd rather capture upside than collect premium. It doesn't work at all on stocks that don't have an active options market.
About covered calls
What is a covered call?
A covered call is when you sell someone else the right to buy 100 shares of a stock you already own at a specific price (the "strike price") within a specific timeframe. In exchange, they pay you a premium up front. If the stock stays below the strike, the contract expires worthless and you keep the premium. If the stock rises above the strike, your shares get "called away" — sold at the strike price — and you keep the premium plus any gains up to the strike.
Are covered calls risky?
They're among the more conservative options strategies, but they're not risk-free. Selling a covered call caps your upside on a position; if the stock rallies past the strike, you don't get those gains. And selling a covered call doesn't protect you from the stock falling — you still own the shares and still take any losses. The full picture is on our Risk Disclaimers page.
Why is the strategy "income"?
Done consistently across a portfolio of stocks you already own, selling covered calls generates a stream of premium income — the exact amount depends on stock volatility, time to expiration, and market conditions. Reasonable expectations and consistent execution are what make it work.
How the product works
How do you pick the strike price?
For each position, we pick a strike based on the assignment probability for the strategy level you've chosen (Conservative, Moderate, or Aggressive). Lower assignment probability means a strike further above the current price; higher assignment probability means a strike closer to the current price. Full detail on our Methodology page.
What's the difference between Conservative, Moderate, and Aggressive?
The strategy level changes the assignment-probability band the engine targets. Conservative aims for a lower probability of assignment (less premium, fewer called-away positions); Aggressive aims for higher (more premium, more called-away positions); Moderate is the middle. Most portfolios earn the most income on Moderate.
Will I get an analysis for every stock every week?
About once a month per stock, since Income Factory targets monthly options. Across a portfolio of 5-10 stocks, the cycles stagger so you'll usually have 1-2 actionable analyses each week alongside status updates on the rest. The engine also skips some weeks — no good strike, earnings before a reasonable expiration, or a position already has an open call. Skips are a real analysis, not the engine giving up.
What about positions that already have a call on them?
You can record an existing open call when you add a position. The engine treats it like one we recommended — it watches expiration, tracks assignment probability, and surfaces a roll, skip, or assignment example as expiration approaches.
What happens if a position needs attention mid-week?
We monitor open positions between Fridays and flag elevated assignment risk in the next Friday analysis. We don't generate intra-week analyses — the product is designed around a weekly rhythm, not real-time alerts.
Trading and execution
Do you place trades for me?
No. We never have access to your brokerage account. Every trade is something you place yourself at your broker. We read-only on your portfolio data — meaning the list of stocks and shares you've added here.
Which brokers work with Income Factory?
Any broker that approves you for selling covered calls. We don't connect to any broker — you read the analysis, you place the trade in your broker's interface, you log it back here.
What if the price has moved by the time I place the trade?
Every analysis includes a floor price — the minimum we'd accept on the trade. If the live market price is at or above the floor when you place the trade, go ahead. If it's below the floor, skip the trade. There's always next Friday.
How do I log a trade I placed?
After you place the trade at your broker, come back to Income Factory and confirm the trade on the analysis card. You enter the actual price you got; we track everything else.
Taxes and account types
Can I use this in an IRA?
Yes, if your IRA is options-approved at your broker for covered call writing. You'll mark the position as held in an IRA when you add it; we adjust how we present analyses accordingly (no holding-period or wash-sale concerns, which don't apply within tax-advantaged accounts in the same way).
What about taxes on the trades?
In a taxable account, premium received from selling covered calls is generally treated as a short-term capital gain (taxed at ordinary income rates) when the position closes. If your shares are called away, you've sold them — creating a capital gain or loss that depends on your holding period and cost basis. We surface the relevant context on each analysis, but we are not your tax advisor. Talk to a qualified professional about your specific situation.
What's a "wash sale" and should I worry about it?
The wash-sale rule disallows claiming a loss on a security if you buy back a substantially identical security within 30 days before or after the sale. It can come into play with covered calls in specific situations — assignment at a loss followed by re-establishing the position, for example. The engine surfaces the concern when relevant, but wash-sale handling is genuinely complex and depends on your full tax picture. Talk to a tax professional.
Pricing and billing
What does Income Factory cost?
Pricing details will be announced as we approach launch. During the beta period, full product access is free for participants.
Is there a free trial?
The estimator is free and doesn't require an account. During the beta period, full product access is also free for participants. Post-beta pricing will be announced before beta ends.
Can I cancel any time?
Yes. Annual or quarterly billing. 3-month free trial. Cancel anytime during the trial; no exit fee.
Privacy and data
What data do you have on me?
The list of stocks and shares you've added, your strategy choices, your trade history within Income Factory, and standard account information (email, password hash, etc.). We don't have access to your brokerage account, your bank, or anything you haven't typed into Income Factory yourself.
Do you sell my data?
No. Full picture in our Privacy Policy.
What happens to my data if I cancel?
You can request deletion at any time and we'll remove your account and associated data within a reasonable window. If you cancel without requesting deletion, your data stays available so you can reactivate later, but we don't guarantee long-term retention of cancelled accounts.
Still have questions?
Email hello@incomefactory.ai and a real person will answer.