The YieldMax™ NFLX Option Income Strategy ETF (NFLY) recently started trading on the NYSE Arca on August 8. The primary objective of this ETF is to generate monthly income by employing a synthetic covered call strategy on the stock of Netflix (NFLX).
The strategy involves creating a synthetic covered call position, which essentially means combining a long position in the underlying stock (Netflix, in this case) with a short position in call options on the same stock. This strategy is designed to generate income by collecting premiums from selling call options while still benefiting from potential stock appreciation up to a certain point.