YieldMax AMZN Option Income Strategy ETF (AMZY)
ARCA ARCA Primary 
AMZY: No Longer An Attractive Entry Point (Rating Downgrade)
YieldMax AMZN Option Income Strategy ETF has delivered nearly +20% returns, primarily from dividend yield, with minimal price change since our last article rating it a 'Buy'. The ETF's design passes underlying equity gains to investors through dividends, aligning with its intended strategy. Current tech market conditions and Amazon's valuation appear stretched, making it a less compelling entry point now.
AMZY: Big Yield On Amazon
The YieldMax AMZN Option Income Strategy ETF (AMZY) offers high monthly income by selling call and put options on AMZN, boasting a big trailing yield. AMZY's synthetic covered call strategy involves buying and selling AMZN options, holding U.S. Treasury securities as collateral, and has an annual fee of ~1%. Despite AMZY's high yield, its monthly distributions vary greatly, and the fund's NAV and trading price may decrease over time.
AMZY: Chasing The 50% Yield: Is It Worth The Risk?
YieldMax's AMZN Option Income Strategy ETF offers high yields by using options strategies on Amazon stock, generating around 40-50% annually. AMZY's strategy involves selling synthetic covered calls and credit call spreads, capping upside potential but providing substantial income in stable or moderately bullish markets. AMZY closely tracks Amazon's performance with minor underperformance due to capped gains, making it suitable for income-focused investors comfortable with options-based ETFs.
AMZY: Multiple Ways To Utilize This Fund
YieldMax AMZN Option Income Strategy ETF offers a massive 40% dividend yield through a synthetic covered call strategy, providing income from Amazon exposure without holding the stock directly. The fund's option strategy caps upside potential and exposes it to full downside risk, making it suitable for income-focused investors rather than those seeking capital appreciation. AMZY is ideal for complementing an existing Amazon stock position, converting unrealized gains into real income and reducing the pressure to sell core holdings.
AMZY: Extract A 40% Distribution From Amazon
YieldMax AMZN Option Income Strategy ETF uses options to generate monthly income while maintaining a long position in Amazon with capped upside. AMZY employs complex active strategies, including risk reversals and call spreads, to achieve a long Amazon position with less balance sheet impact. The ETF offers a 40% distribution rate, though it mirrors Amazon's total return and is not guaranteed; performance depends on Amazon's stock.
AMZY Provides Investors With Similar Exposure To AMZN With Income In Mind
YieldMax AMZN Option Income Strategy ETF is recommended with a buy rating and a 1-2% allocation in a tax-efficient portfolio due to its high income distribution. AMZY generates income through underwriting call and put options, with a forward distribution rate of 41.46% and an average monthly distribution of $0.6409/share. Despite a high 99bps management fee, AMZY's income distribution compensates for the cost, making it an appealing investment for those seeking Amazon exposure with added income.
AMZY: The Time Is Right To Sell Upside Calls On Amazon
The Consumer Discretionary sector is the weakest in 2024, with Amazon and Tesla dragging down the SPDR Consumer Discretionary ETF's performance. I recommend buying YieldMax AMZN Option Income Strategy ETF to capitalize on Amazon's implied volatility and collect option income ahead of its Q3 report. AMZY's strategy involves selling call options on AMZN, offering high yields but capping potential gains, and exposing the fund to losses if AMZN's value drops.
AMZY: 50% Yield, Outperforming
YieldMax AMZN Option Income Strategy ETF offers a 50%-plus yield through a synthetic covered call strategy on Amazon.com, Inc. The AMZY ETF's variable monthly distributions are based on Amazon.com option premiums, with a forward yield of nearly 67%. AMZY has outperformed the S&P in 2024, with a total return of 23.19% and a price gain of 9.5% since inception in July 2023.
AMZY: Make Hay While The Sun Shines
"Make hay while the sun shines" explained as taking advantage of favorable conditions, applied to investing in the stock market. AMZY, an actively managed fund that buys and sells options on AMZN, offers monthly income and has delivered impressive returns. Consumer spending, the growing investment in AI cloud infrastructure, and the health of Amazon are important factors to consider when investing in AMZY.
