YieldMax Launches Option Income Strategy ETF on Netflix

YieldMax has added another option income strategy ETF to its lineup, with the new fund focused on Netflix, Inc. (NFLX).

The YieldMax™ NFLX Option Income Strategy ETF (NFLY), listed on NYSE Arca on August 8, seeks to generate monthly income via a synthetic covered call strategy on Netflix.

“Netflix has been one of the stronger performing stocks in the S&P 500,” Todd Rosenbluth, head of research at VettaFi, said. “This new ETF can appeal to growth-oriented investors wanting to also earn income in one package.”

The active fund charges 99 basis points. NFLY is managed by ZEGA Financial, an investment manager specializing in derivatives. ZEGA Financial helps investors successfully navigate volatile and uncertain markets through innovative hedging strategies, according to a statement from the firm.

NFLY is the eighth ETF to join the YieldMax suite of ETFs. Last month, YieldMax launched the YieldMax META Option Income Strategy ETF (FBY), the YieldMax GOOGL Option Income Strategy ETF (GOOY), and the YieldMax AMZN Option Income Strategy ETF (AMZY). The actively managed funds sell/write call options on Meta Platforms Inc. (META), Alphabet Inc. (GOOGL), and Amazon.com Inc. (AMZN), respectively.

See more: “New YieldMax ETF Seeks Synthetic Covered Call Strategy on Amazon 

ZEGA Financial actively manages all funds in the YieldMax ETFs lineup. Importantly, the ETFs do not invest directly in the equities but rather use a synthetic covered call strategy.

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