YieldMax ETF Seeks Synthetic Covered Call Strategy on Amazon

YieldMax has launched the YieldMax AMZN Option Income Strategy ETF (NYSE Arca: AMZY) on the New York Stock Exchange. The actively managed fund seeks to generate monthly income via a synthetic covered call strategy on Amazon.com Inc. (AMZN).

AMZY aims to harvest compelling yields while retaining capped participation in Amazon’s price gains. YieldMax noted in a press release that AMZY, which ZEGA Financial actively manages, does not invest directly in AMZN.

Tidal Financial Group is the adviser for all YieldMax ETFs. ZEGA Financial is their subadvisor.

See more: “Get Exposure to NVIDIA Stock Price, Options Income in New YieldMax ETF

AMZY is the latest edition to the suite of YieldMax ETFs that aims to deliver monthly income to investors. In May, Tidal launched the actively managed YieldMax NVDA Option Income Strategy ETF (NVDY). NVDY has a similar strategy to AMZY whereby it seeks to generate monthly income by selling/writing call options on NVIDIA (NVDA) stock. And just as AMZY doesn’t invest directly in Amazon, NVDA doesn’t invest directly in NVIDIA.

“Advisors are increasingly turning to ETFs that use options to generate enhanced income,” said VettaFi’s head of research Todd Rosenbluth. “We have seen strong flows to covered call strategies and other alternatives in the past year.”

AMZY, like all YieldMax ETFs, has an expense ratio of 0.99%.

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