Direxion Daily AMZN Bear 1X Shares (AMZD) Covered Calls

The Direxion Daily AMZN Bear 1X Shares is an actively managed exchange-traded fund that seeks to provide -100% of the daily performance of the common stock of Amazon.com, Inc. The fund primarily utilizes swap agreements to achieve its inverse daily objective. It is designed as a tactical hedging and trading tool for sophisticated investors looking to profit from daily price declines in the global e-commerce and cloud computing giant without short-selling shares.

You can sell covered calls on Direxion Daily AMZN Bear 1X Shares 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 AMZD (prices last updated Fri 4:16 PM ET):

Direxion Daily AMZN Bear 1X Shares (AMZD) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
10.99 +0.60 11.01 11.02 14.7M - 0.0
Covered Calls For Direxion Daily AMZN Bear 1X Shares (AMZD)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 11 0.30 10.72 2.6% 63.3%
Mar 20 11 0.20 10.82 1.7% 14.4%
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Extended Business Description

Direxion Daily AMZN Bear 1X Shares is an inverse investment vehicle designed to deliver the opposite of Amazon’s daily price performance. As a single-stock inverse ETF, AMZD allows active participants to express a bearish view on Amazon or hedge existing long positions without the margin requirements or borrowing costs typically associated with short-selling.

Core Strategy and Operations

  1. -100% Daily Inverse Objective: The fund seeks daily investment results, before fees and expenses, of 100% of the inverse (or -100%) of the performance of Amazon common stock. If Amazon shares drop 1% in a single trading session, the fund is designed to rise 1%. To achieve this, the fund primarily enters into synthetic swap agreements with major global financial institutions.
  2. Daily Reset and Compounding: AMZD rebalances its exposure at the close of every trading day to maintain its -1x target. Consequently, its performance over periods longer than a single day is the result of compounding daily returns. In volatile markets, this "daily reset" can lead to performance that differs significantly from a simple inverse of the stock's return over time. It is intended for short-term tactical use and not as a "buy-and-hold" bearish position.
  3. Financial Profile: As of February 2026, the fund maintains a net expense ratio of approximately 1.02% (after fee waivers). The fund is highly liquid, often seeing higher relative trading volume than its bullish counterparts during periods of market stress or heading into earnings reports, as it serves as a primary hedge for institutional and retail traders alike.

Competitive Landscape

AMZD is the primary choice for traders seeking "unleveraged" inverse exposure to Amazon. For those with a more aggressive bearish outlook, the Tradr 2X Short TSLA Daily ETF offers a similar inverse mechanic for the EV sector. Investors looking for bearish exposure that also generates income often turn to the YieldMax Short NVDA Option Income Strategy ETF. Its most direct internal peer is the Direxion Daily AMZN Bull 2X Shares, which traders use to pivot between bullish and bearish stances on the stock.

Strategic Outlook and Innovation

Management focuses on maintaining tight inverse correlation to Amazon’s daily percentage changes while managing counterparty risk within the derivative portfolio. In the 2026 market, AMZD is frequently used by traders concerned about AWS margin compression or regulatory headwinds facing Amazon's retail dominance. Because it is a non-diversified fund, it carries substantial risk; if Amazon’s stock surges unexpectedly, AMZD will suffer immediate losses. It is best suited for experienced investors who actively monitor their portfolios and understand the mathematical effects of daily inverse compounding in a high-volatility environment.