REX IncomeMax Option Strategy ETF (ULTI)

Overview

ULTI is focused on delivering weekly cash distributions through a strategic investment approach that integrates equity market exposure, options trading, and investments in short-term U.S. Treasuries. With a portfolio that comprises 1530 U.S.-listed stocks or their equivalent synthetic positions developed through options, the fund employs a rigorous quantitative method for security selection. This methodology prioritizes stocks exhibiting high implied volatility and robust liquidity, aiming to bolster option premium income alongside dividend yields. The primary revenue stream is derived from options strategies, which include writing covered calls, selling put options, and utilizing call spreads to capture premium income. This consistent income generation technique does entail certain risks, particularly in limiting potential appreciation when stock prices experience significant upward momentum. To mitigate these risks, the fund strategically employs lower-delta purchased options to hedge against potential losses during market downturns. Additionally, ULTI allocates up to 10% of its total assets to short-term U.S. Treasuries or cash, ensuring availability of collateral while also earning interest income.

Products and Services

• Equity Exposure:

  ULTI invests in a diversified portfolio of 1530 U.S.-listed stocks or equivalent synthetic positions, aiming to capture the market's growth potential while generating income through dividends and options strategies.

• Options Trading:

  The fund implements a variety of options strategies to create revenue streams, including writing covered calls, selling put options, and employing call spreads. These strategies are designed to generate premium income while managing downside risk.

• Quantitative Security Selection:

  Security selection is conducted through a quantitative approach that targets stocks with high implied volatility and strong liquidity. This process enhances the potential for both option premium income and dividend yield, aligning with ULTI's income-focused strategy.

• Risk Management:

  Risk is managed through strategic hedging, where each written option is offset by a lower-delta purchased option. This practice limits potential losses during adverse market conditions while still allowing for income generation from options premiums.

• Short-term U.S. Treasuries and Cash Allocation:

  By routing up to 10% of assets into short-term U.S. Treasuries or maintaining cash reserves, ULTI ensures there is adequate collateral available, which also adds an additional income source through interest earned on these holdings.