ProShares S&P 500 High Income ETF (ISPY) Covered Calls

The ProShares S&P 500 High Income ETF is a passively managed exchange-traded fund that seeks to provide high monthly income while aiming for total returns similar to the S&P 500 Index. The fund is the first of its kind to utilize daily zero-days-to-expiration (0DTE) call options on its underlying index, allowing for a frequent reset of the price appreciation cap to better capture market upside.

You can sell covered calls on ProShares S&P 500 High Income 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 ISPY (prices last updated Wed 4:16 PM ET):

ProShares S&P 500 High Income ETF (ISPY) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
45.66 +0.32 42.27 46.42 98K - 0.0
Covered Calls For ProShares S&P 500 High Income ETF (ISPY)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 46 0.00 46.42 -0.9% -109.5%
Mar 20 46 0.00 46.42 -0.9% -10.6%
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Core Business and Products

ISPY is an innovative derivative-income ETF that tracks the S&P 500 Daily Covered Call Index. Unlike traditional covered call funds that sell monthly contracts and often cap upside potential for long periods, ISPY sells daily call options (0DTE). This "daily reset" approach is designed to harvest significant option premiums while allowing the fund to participate more effectively in daily market rallies. The fund typically maintains a long position in S&P 500 stocks or swaps to replicate the index, overlaying the daily short call positions to generate monthly distributions for shareholders.

Competitive Landscape

ISPY competes in the crowded field of S&P 500-linked income products. Its daily expiration strategy places it in direct competition with other high-frequency option funds. Key rivals that have active options markets on major exchanges include the JPMorgan Equity Premium Income ETF and the NEOS S&P 500 High Income ETF. It also competes with the Roundhill S&P 500 0DTE Covered Call Strategy ETF, which similarly targets daily premium capture. For investors seeking a broader tech-heavy income profile, the JPMorgan Nasdaq Equity Premium Income ETF is a frequent alternative. The ultimate benchmark for performance comparison remains the SPDR S&P 500 ETF Trust.

Strategic Outlook and Innovation

The fund's strategic objective is to bridge the gap between high-yield income and equity market growth. By selling daily options, management seeks to exploit the rapid theta decay (time decay) inherent in ultra-short-term contracts. This frequency allows for more precise strike price selection based on current market volatility and the Cboe VIX levels. Innovation for ISPY centers on the use of swap contracts and proprietary formulas to execute this systematic daily writing process at scale. The long-term outlook for the fund depends on its ability to maintain a high distribution rate without significantly eroding its net asset value during sustained bull markets, where daily caps can still impact total return relative to the unhedged index.