YieldMax Ultra Option Income Strategy ETF (ULTY) Covered Calls
The YieldMax Ultra Option Income Strategy ETF is an actively managed fund that seeks to generate high current income by employing covered call strategies on a concentrated portfolio of volatile U.S.-listed equity securities. Unlike other YieldMax funds tied to a single asset, ULTY targets 15 to 30 individual stocks selected primarily for their high implied volatility, aiming to harvest outsized option premiums for distribution to shareholders.
You can sell covered calls on YieldMax Ultra 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 ULTY (prices last updated Mon 4:16 PM ET):
| YieldMax Ultra Option Income Strategy ETF (ULTY) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 32.90 | +0.77 | 32.32 | 32.97 | 657K | - | 0.0 |
| Covered Calls For YieldMax Ultra Option Income Strategy ETF (ULTY) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Mar 20 | 33 | 0.00 | 32.97 | 0.0% | 0.0% | |
| Apr 17 | 33 | 0.05 | 32.92 | 0.2% | 1.8% | |
| Subscribers get access to the full covered call chain, and more features. | ||||||
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YieldMax Ultra Option Income Strategy ETF (ULTY) is a high-octane income vehicle designed to capitalize on market volatility. While most YieldMax ETFs track a specific underlying stock or a broad index, ULTY is "unconstrained," allowing its management team to rotate into any U.S. equity with high implied volatility to maximize option premium income.
Core Strategy and Selection Process
- Volatility-Driven Selection: The advisor typically selects 15 to 30 underlying securities (though it can hold as few as five) based on high levels of implied volatility. This tech-heavy and speculative focus frequently leads to holdings in sectors like AI, crypto-mining, and high-growth biotechnology.
- Synthetic & Direct Covered Calls: ULTY generates income by selling call options. Depending on market conditions, the fund may hold the underlying stocks directly or use synthetic positions (combinations of options and cash) to replicate stock exposure while collecting premium.
- Weekly Distribution Schedule: As of February 2026, ULTY operates on a weekly distribution model, paying out cash flow every Thursday. These payouts are primarily sourced from option premiums but may include a significant portion of Return of Capital (ROC) during periods of NAV erosion.
Portfolio Characteristics and Risks
Because ULTY pursues the "Ultra" volatility of the market, it carries a higher risk profile than standard covered call funds. The fund’s NAV is highly sensitive to broad market sell-offs in the speculative tech sector. Furthermore, while the distributions are among the highest in the ETF space, the strategy caps the upside potential of the underlying stocks during massive rallies.
Expense Ratio and Peer Comparison
As of February 2026, ULTY carries a gross expense ratio of 1.40%, which is currently reduced to a net expense ratio of 1.30% via a contractual fee waiver. It serves as a more aggressive alternative to the YieldMax Universe Fund (YMAX) and the YieldMax Magnificent 7 Fund (YMAG). Its most direct competitor for high-volatility derivative income is the YieldMax Ultra Short Option Income Strategy ETF (SLTY).
| Top 10 Open Interest For Mar 20 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA covered calls | 6. | QQQ covered calls | 1. | CTMX covered calls | |
| 2. | SLV covered calls | 7. | EWZ covered calls | 2. | PATH covered calls | |
| 3. | EEM covered calls | 8. | GLD covered calls | 3. | KSS covered calls | |
| 4. | SPY covered calls | 9. | FXI covered calls | 4. | OWL covered calls | |
| 5. | IBIT covered calls | 10. | KWEB covered calls | 5. | USO covered calls | |
Want more examples? ULTA Covered Calls | UMBF 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.
