InfraCap MLP ETF (AMZA) Covered Calls

The InfraCap MLP ETF (AMZA) is an actively managed exchange-traded fund that seeks to provide high current income and capital appreciation. The fund invests primarily in midstream energy master limited partnerships (MLPs) and related infrastructure companies. Unlike passive index funds, AMZA utilizes an active management strategy that includes the selective use of leverage and an options-writing strategy (covered calls) to enhance distributions and manage portfolio volatility.

You can sell covered calls on InfraCap MLP 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 AMZA (prices last updated Thu 1:10 PM ET):

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Core Business and Products

The InfraCap MLP ETF serves as a specialized income-generation vehicle focused on the North American energy infrastructure sector. The fund primarily targets midstream MLPs, which are responsible for the gathering, processing, transportation, and storage of natural gas, crude oil, and refined products. Because these entities typically operate under long-term, fee-based contracts, they provide relatively stable cash flows that are passed through to investors in the form of high-yield distributions.

As an actively managed fund, AMZA does not simply mimic a benchmark. The portfolio management team at Infrastructure Capital Management (InfraCap) performs fundamental analysis to overweight MLPs with superior growth prospects and stronger balance sheets. A key differentiator for AMZA is its tactical use of modest leverage (typically around 10-20%) and a systematic covered call writing strategy. These tools are employed to increase the fund's total yield and provide a "buffer" during periods of sideways market movement. Major holdings often include industry leaders such as Enterprise Products Partners, Energy Transfer, and MPLX LP.

Competitive Landscape

AMZA competes within the high-yield energy sector against both passive and active products. Its largest passive rival is the Alerian MLP ETF, which tracks the most recognized index in the space. While AMLP offers pure-play index exposure, AMZA appeals to investors seeking outperformance through active security selection and the added income from option premiums. Other competitors include the Global X MLP ETF, known for its low expense ratio, and the First Trust North American Energy Infrastructure Fund, which includes a broader mix of utilities and corporations.

Competition is driven by total return, distribution consistency, and tax efficiency. Because AMZA is structured as a C-Corporation to allow for high MLP concentration, it manages its own deferred tax liability. This structure, combined with its active strategy, makes it a distinct alternative to "RIC-compliant" funds that must limit their MLP exposure to 25%. This allows AMZA to provide a "purer" correlation to the MLP asset class while offering the liquidity and transparency of the ETF wrapper.

Strategic Outlook and Innovation

The strategic outlook for AMZA in 2026 is bolstered by the continued demand for North American energy independence and the role of natural gas as a "bridge fuel" in the global energy transition. Midstream MLPs are increasingly focusing on capital discipline, using record free cash flow to buy back units and increase distributions rather than pursuing aggressive overexpansion. This shift has transformed the sector from a high-growth, high-debt model to one of stability and "value," making it highly attractive for income-oriented portfolios in a volatile macro environment.

Innovation within the fund focuses on the integration of real-time data analytics to optimize the covered call overlay. By adjusting the strike prices and expiration dates of its options based on implied volatility and technical signals, the management team seeks to capture maximum premium without capping too much upside potential. Additionally, as the MLP sector consolidates, AMZA’s active approach allows it to navigate mergers and acquisitions more nimbly than a rigid index fund. This focus on tactical flexibility and enhanced income ensures that AMZA remains a premier choice for investors targeting the high-yield energy infrastructure market.

Want more examples? AMX Covered Calls | AMZD Covered Calls