Direxion Daily AMZN Bull 2X Shares (AMZU) Covered Calls

The Direxion Daily AMZN Bull 2X Shares is an actively managed exchange-traded fund that seeks to provide 200% of the daily performance of the common stock of Amazon.com, Inc. The fund primarily utilizes swap agreements to achieve its double-leveraged daily objective. It is designed as a tactical tool for sophisticated traders and investors looking to magnify their bullish exposure to the price movements of the global e-commerce and cloud computing leader.

You can sell covered calls on Direxion Daily AMZN Bull 2X 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 AMZU (prices last updated Fri 4:16 PM ET):

Direxion Daily AMZN Bull 2X Shares (AMZU) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
28.32 -3.55 28.15 28.19 15.7M - 0.0
Covered Calls For Direxion Daily AMZN Bull 2X Shares (AMZU)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 28 1.40 26.79 4.5% 110%
Mar 20 28 2.30 25.89 8.1% 68.8%
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Extended Business Description

Direxion Daily AMZN Bull 2X Shares is a high-leverage investment vehicle engineered to provide twice the daily price performance of Amazon. As a single-stock leveraged ETF, AMZU allows active participants to amplify their bullish conviction on Amazon without the need for personal margin or complex derivative management.

Core Strategy and Operations

  1. 200% Daily Leveraged Objective: The fund aims for daily investment results, before fees and expenses, of 200% of the daily performance of Amazon common stock. To achieve this 2x target, the fund primarily engages in synthetic swap agreements with major financial institutions (such as Goldman Sachs and Citibank). It also holds a significant portion of its assets in cash equivalents and U.S. Treasury obligations to serve as collateral for its derivative positions.
  2. Daily Reset and Volatility Decay: AMZU resets its leverage at the end of every trading session. Because of this mechanism, the fund's performance over periods longer than a single day is the result of compounding daily returns. In "choppy" or sideways markets, the fund is susceptible to "volatility decay," which can cause its value to decline even if the underlying stock remains relatively flat over time. It is intended for short-term tactical use rather than long-term buy-and-hold strategies.
  3. Expense Structure: As of 2026, the fund carries a net expense ratio of approximately 0.99%. This fee covers the operational costs of maintaining high-leverage swap positions and the intensive daily rebalancing required to track the 2x target accurately.

Competitive Landscape

AMZU competes in the growing market for leveraged single-stock products. Its most direct rival is the GraniteShares 2x Long AMZN Daily ETF, which also targets a 200% daily multiple. For investors seeking a more conservative "leverage-lite" approach combined with income, the Roundhill AMZN WeeklyPay ETF (1.2x) is a frequent alternative. Those focused purely on yield typically look to the YieldMax AMZN Option Income Strategy ETF. On the bearish side, the Direxion Daily AMZN Bear 1X Shares provides an inverse hedge against Amazon price drops.

Strategic Outlook and Innovation

Management focuses on maintaining high liquidity and tight tracking of Amazon’s daily percentage changes. In the 2026 market, AMZU is a staple for momentum traders who believe Amazon’s dominance in generative AI via AWS and its evolving logistics network will drive short-term price surges. The fund is non-diversified and carries substantial risk; a significant decline in Amazon’s stock can result in a rapid and disproportionate loss of principal. It is intended for experienced participants who monitor their exposure daily and have a high risk tolerance for the inherent swings of the technology and consumer discretionary sectors.