YieldMax AMZN Option Income Strategy ETF (AMZY) Covered Calls

The YieldMax AMZN Option Income Strategy ETF is an actively managed fund that seeks to provide weekly income through a synthetic covered call strategy on Amazon.com, Inc. The fund aims for exposure to Amazons stock price movements, subject to a limit on potential investment gains, while generating current income from option premiums. It is designed for investors who want to harvest the high volatility of the e-commerce and cloud giant into a frequent stream of cash payouts.

You can sell covered calls on YieldMax AMZN Option Income Strategy ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for AMZY (prices last updated Mon 4:16 PM ET):

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YieldMax AMZN Option Income Strategy ETF is a derivative-income vehicle designed to provide exposure to Amazon while prioritizing aggressive, high-frequency cash flow. AMZY utilizes a "synthetic covered call" strategy, allowing investors to capture premiums from Amazon’s significant implied volatility, which is often driven by its dual dominance in retail and cloud computing (AWS).

Core Strategy and Operations

1. Synthetic Long Exposure: The fund does not own shares of Amazon directly. Instead, it creates a "synthetic" long position by buying call options and selling put options. This provides the fund with exposure to Amazon’s price movements using a fraction of the capital, while the bulk of the fund’s assets are held in U.S. Treasury securities to earn interest and serve as collateral.
2. Capped Upside for Income: To generate its signature yield, the fund writes (sells) short-term call options on Amazon. The premiums from these options are the primary source of the fund’s distributions. In exchange for this income, the fund’s potential for capital appreciation is "capped"—if Amazon’s stock price surges significantly, the fund will not fully participate in those gains beyond the strike price of the sold calls.
3. Weekly Distributions and NAV Erosion: As of 2026, AMZY has moved to a weekly distribution schedule to provide constant liquidity. Investors should be aware that during periods of stagnant or declining stock prices, a portion of these payouts may consist of Return of Capital (ROC). Because the fund sells away the "tails" of Amazon’s growth, the Net Asset Value (NAV) can erode over time if the underlying stock experiences a sustained upward run that the fund cannot fully capture.

Competitive Landscape

AMZY is a cornerstone of the YieldMax "Magnificent 7" suite, often held alongside peers like the YieldMax NVDA Option Income Strategy ETF and the YieldMax META Option Income Strategy ETF. Its most direct competitor for Amazon-specific income is the YieldMax Amazon Fund of Option Income ETFs. For investors seeking simple bullish leverage without the income focus, the Direxion Daily AMZN Bull 2X Shares is a common alternative.

Strategic Outlook and Innovation

The fund is actively managed with a gross expense ratio of approximately 1.17% to 1.18% as of 2026. The management team dynamically selects strike prices to balance the competing goals of high income and NAV preservation. In the 2026 market, AMZY is frequently utilized by "yield-focused" investors who believe Amazon’s valuation has reached a mature, range-bound phase where option selling is more profitable than pure equity ownership. However, it remains a high-risk, non-diversified product; if Amazon shares drop significantly, the fund’s synthetic long position will suffer losses that may not be fully offset by the premiums collected.

Want more examples? AMZW Covered Calls | AMZZ Covered Calls