Defiance Daily Target 2x Long MSTR ETF (MSTX) Covered Calls

The Defiance Daily Target 2X Long MSTR ETF is an actively managed leveraged fund seeking to provide two times (2x) the daily performance of MicroStrategy Inc. (MSTR). Utilizing a synthetic strategy through swap agreements with multiple global counterparties, MSTX allows sophisticated traders to amplify their bullish conviction on the largest corporate holder of Bitcoin. As a geared vehicle, it resets daily and is subject to volatility drag and compounding effects over longer holding periods.

You can sell covered calls on Defiance Daily Target 2x Long MSTR 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 MSTX (prices last updated Fri 4:16 PM ET):

Defiance Daily Target 2x Long MSTR ETF (MSTX) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
2.45 +0.36 2.45 2.46 90.5M - 0.0
Covered Calls For Defiance Daily Target 2x Long MSTR ETF (MSTX)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 2.5 0.16 2.30 7.0% 319%
Mar 20 2 0.58 1.88 6.4% 64.9%
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Defiance Daily Target 2X Long MSTR ETF is a high-conviction tactical tool designed to deliver 200% of the daily share price performance of MicroStrategy Inc. (MSTR). Since its launch, MSTX has established itself as a premier vehicle for traders looking to express an ultra-bullish view on the "Bitcoin Treasury" model. By doubling the daily moves of MSTR—which itself acts as a high-beta proxy for Bitcoin—MSTX provides one of the most volatile and liquid trading instruments on the NASDAQ in 2026.

Core Strategy and Operations

  1. Multi-Counterparty Swap Strategy: MSTX achieves its 2x target primarily through total return swaps. Unlike some competitors, the fund frequently utilizes a broad array of counterparties—including BMO, Cantor Fitzgerald, Clear Street, and Marex—to maintain deep liquidity and minimize counterparty risk while ensuring precise tracking of the 2x daily goal.
  2. Leverage Evolution: Originally launched with a 1.75x target, the fund successfully increased its leverage to 2x (200%) in late 2024 to remain competitive in the aggressive single-stock ETF landscape. This shift has solidified its position as a favorite for professional "gamma" traders.
  3. Daily Rebalancing and Collateral: The fund rebalances its exposure at the close of every trading day. To back its swap obligations, MSTX holds a portfolio of cash, money market funds, and U.S. Treasury bills, which helps generate interest income to partially offset its 1.29% expense ratio.

Competitive Landscape

MSTX is locked in a direct head-to-head battle for dominance with the T-Rex 2X Long MSTR Daily Target ETF. While MSTX carries a slightly higher expense ratio (1.29% vs 1.05%), it is often cited for its institutional-grade counterparty diversity. It also competes for "risk-on" capital with the GraniteShares 2x Long COIN Daily ETF and the 2x Bitcoin Strategy ETF. For income-focused accounts, it is contrasted with the YieldMax MSTR Option Income Strategy ETF, while bearish hedgers utilize the Defiance Daily Target 2X Short MSTR ETF (-2x).

Strategic Outlook and Innovation

Entering 2026, MSTX has become a staple for "momentum-burst" strategies during Bitcoin breakout cycles. A key strategic focus for Defiance is maintaining the fund's tracking efficiency during the extreme overnight volatility often associated with MicroStrategy. Innovation is centered on the fund's high-velocity options market, which in 2026 provides some of the highest implied volatility (IV) premiums available for retail option writers. As MicroStrategy continues to scale its Bitcoin holdings through convertible debt, MSTX serves as the primary "force multiplier" for investors who view MSTR as a superior vehicle to spot Bitcoin. With over $250 million in AUM and heavy daily turnover, MSTX is positioned to remain the benchmark for high-conviction, leveraged exposure to the institutionalization of the digital asset economy.