REX-Osprey ETH + Staking ETF (ESK) Covered Calls
The REX-Osprey ETH + Staking ETF (ESK) is an actively managed exchange-traded fund that provides investors with exposure to Ethereum (ETH) combined with the potential for native staking rewards. By investing directly and through a wholly owned subsidiary, the fund aims to deliver returns that track the performance of Ethereum while distributing the staking yield generated from the network.
You can sell covered calls on REX-Osprey ETH + Staking 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 ESK (prices last updated Thu 4:16 PM ET):
| REX-Osprey ETH + Staking ETF (ESK) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 12.69 | -0.03 | 9.51 | 15.85 | 0K | - | 0.0 |
| Covered Calls For REX-Osprey ETH + Staking ETF (ESK) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Mar 20 | 13 | 0.00 | 15.85 | -18.0% | -730.0% | |
| Apr 17 | 13 | 0.00 | 15.85 | -18.0% | -177.6% | |
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The ESK ETF represents a significant innovation in the digital asset space by automating the participation in Ethereum’s "Proof-of-Stake" consensus mechanism. Unlike holding ETH in a personal wallet, which requires technical infrastructure for validation, ESK handles the complexities of network staking and distributes the resulting yields to shareholders, typically on a monthly basis.
The fund is structured as a 1940 Act ETF, providing investors with a familiar regulatory framework for accessing crypto exposure. Its strategy focuses on balancing the price volatility of the underlying Ethereum asset with the additional income stream derived from network validation rewards. This makes it a unique tool for investors who are bullish on Ethereum’s long-term utility but seek the added benefit of yield-generation without the overhead of independent staking.
Competitive Landscape
ESK operates in the highly competitive and evolving landscape of spot cryptocurrency ETFs. Its primary competitive set includes other institutional-grade Ethereum products, though ESK differentiates itself via the integrated staking component:
- iShares Ethereum Trust (ETHA): A benchmark for pure-play, spot Ethereum exposure that does not include native staking rewards, representing the standard institutional alternative.
- ProShares Bitcoin Strategy ETF (BITO): While tracking Bitcoin rather than Ethereum, it is the primary benchmark for the "first-to-market" dominance and institutional liquidity of a crypto-linked ETF.
- Coinbase Global (COIN): Although not an ETF, it acts as the primary infrastructure provider and custodian for much of the ecosystem, representing the "platform" side of the crypto competitive landscape.
Strategic Outlook and Innovation
The strategic roadmap for ESK is centered on increasing accessibility to "staking-as-a-service" within the ETF wrapper. Management is focused on optimizing distribution processes for staking rewards and enhancing the fund’s liquidity. Innovation efforts are driven by the broader evolution of the Ethereum network, particularly as updates to consensus protocols affect yield efficiency and the overall security model of the assets held within the fund.
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Want more examples? ESI Covered Calls | ESLT Covered Calls
Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.
Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.
