YieldMax™ NFLX Option Income Strategy ETF (NFLY)

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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.

ETF Newz Says:

According to Todd Rosenbluth, the head of research at VettaFi, Netflix has shown strong performance within the S&P 500. The YieldMax™ NFLX Option Income Strategy ETF is designed to attract investors who are interested in growth and want to earn income simultaneously.

The ETF is actively managed and charges a fee of 99 basis points (0.99%). It is managed by ZEGA Financial, a specialized investment manager that focuses on derivatives. The company is known for helping investors navigate volatile and uncertain markets by implementing innovative hedging strategies.


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