DISO
YieldMax DIS Option Income Strategy ETF
stock NYSE

Selling a call adds a bearish element to a position so it should outperform the underlying in a down or sideways market. The issue is a downturn is usually followed by a sharp recovery which is an awful environment for covered calls. Most rules based etfs don’t care to adjust their strategy when the market drops because they get paid from AUM and if the fund says we will pause distributions to preserve capital funds will leave.
The YieldMax funds charge their 1% management fee from the people who want a double digit distribution yield even if it means underperforming and don’t want to learn how to sell covered calls themselves (it’s very easy to learn). I see YieldMax liquidated their DIS etf last month, but you don’t get a better underlying to sell options on than that chart. It has traded in a 3 year range between 80-120, you could have made a lot of money for a long time by selling puts when the stock is down by 85 and selling calls when it gets to 110. From inception to liquidation in just under 3 years DISO had a total return of 14.62%, in the same time period if you held Dis you would have had a 27.55% total return.

Selling a call adds a bearish element to a position so it should outperform the underlying in a down or sideways market. The issue is a downturn is usually followed by a sharp recovery which is an awful environment for covered calls. Most rules based etfs don’t care to adjust their strategy when the market drops because they get paid from AUM and if the fund says we will pause distributions to preserve capital funds will leave.
The YieldMax funds charge their 1% management fee from the people who want a double digit distribution yield even if it means underperforming and don’t want to learn how to sell covered calls themselves (it’s very easy to learn). I see YieldMax liquidated their DIS etf last month, but you don’t get a better underlying to sell options on than that chart. It has traded in a 3 year range between 80-120, you could have made a lot of money for a long time by selling puts when the stock is down by 85 and selling calls when it gets to 110. From inception to liquidation in just under 3 years DISO had a total return of 14.62%, in the same time period if you held Dis you would have had a 27.55% total return.