Amplify Bitcoin Max Income Covered Call ETF (BAGY) Covered Calls

The Amplify Bitcoin Max Income Covered Call ETF is an actively managed fund that targets high current income through a synthetic covered call strategy on the price of Bitcoin. Utilizing a mix of standardized and FLEX options, the fund seeks to harvest 30-60% in annualized option premiums. BAGY provides investors with Bitcoin price exposure while capping weekly upside potential to generate outsized monthly distributions in the volatile digital asset market.

You can sell covered calls on Amplify Bitcoin Max Income Covered Call 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 BAGY (prices last updated Fri 4:16 PM ET):

Amplify Bitcoin Max Income Covered Call ETF (BAGY) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
29.52 +2.97 24.75 36.64 30K - 0.0
Covered Calls For Amplify Bitcoin Max Income Covered Call ETF (BAGY)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 30 0.00 36.64 -18.1% -440.4%
Mar 20 30 0.00 36.64 -18.1% -153.6%
Subscribers get access to the full covered call chain, and more features.

Want to make money with covered calls?  Sign Up For A Free Trial

Extended Business Description

Amplify Bitcoin Max Income Covered Call ETF is a high-yield derivative vehicle designed to transform Bitcoin’s price volatility into a consistent income stream. Launched in early 2025, BAGY differentiates itself from traditional covered call funds by employing a "Max Income" mandate, which prioritizes the collection of high option premiums over full capital appreciation. The fund does not hold Bitcoin directly but uses a synthetic strategy to replicate its price action.

Core Strategy and Operations

  1. Synthetic Buy-Write Overlay: The fund creates synthetic long exposure to Bitcoin by purchasing call options and selling put options on Bitcoin ETPs. To generate income, it writes (sells) out-of-the-money call options—typically 5% above the current price—with weekly expirations. This "4x more often" writing frequency compared to monthly funds allows BAGY to compound premiums more aggressively.
  2. Targeted Yield and Payouts: As of February 2026, BAGY specifically targets an annualized option premium of 30-60%. Distributions are paid on a monthly basis. In the 2026 market, these payouts have frequently included a significant portion of Return of Capital (ROC), a common trait for "max yield" vehicles during periods of high Bitcoin price volatility.
  3. Collateral and Fees: The fund maintains a robust collateral base in U.S. Treasury bills and cash equivalents to back its synthetic positions. This helps generate additional interest income, supporting the fund’s competitive 0.65% expense ratio.

Competitive Landscape

BAGY sits at the aggressive end of the Amplify crypto-income suite, offering higher yield potential than the Amplify Bitcoin 2% Monthly Option Income ETF. It competes directly for "yield-hungry" capital with the YieldMax MSTR Option Income Strategy ETF and the YieldMax COIN Option Income ETF. For investors seeking a more balanced approach with lower volatility, it is often compared to the Grayscale Bitcoin Covered Call ETF or the Global X Bitcoin Covered Call ETF.

Strategic Outlook and Innovation

In 2026, BAGY has become a popular "volatility harvester" for retail investors who want to monetize the "sideways" or "moderately bullish" phases of the Bitcoin cycle. A key innovation for the fund in 2026 is its "Dynamic Strike" management, where the portfolio team adjusts the distance of the sold calls based on 7-day implied volatility trends to avoid "getting called away" during rapid price spikes. While the fund provides a buffer against minor downturns through premium collection, it remains exposed to significant NAV erosion during major Bitcoin bear markets. With a lean 0.65% fee and a high-frequency trading strategy, BAGY is positioned as a premier tool for turning digital asset volatility into a monthly paycheck.