YieldMax Semiconductor Portfolio Option Income ETF (CHPY) Covered Calls

The YieldMax Semiconductor Portfolio Option Income ETF is an actively managed fund targeting current income and capital appreciation. Unlike single-stock ETFs, it holds a basket of 15 to 30 leading semiconductor equities and employs an options overlay to generate premiums. It is designed for investors seeking diversified exposure to the chip sector with a focus on consistent weekly distributions and reduced single-stock risk.

There are no covered calls available for YieldMax Semiconductor Portfolio Option Income ETF.

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Extended Business Description

YieldMax Semiconductor Portfolio Option Income ETF is a diversified income vehicle that blends direct equity growth with a high-frequency options strategy. While most YieldMax funds focus on a single ticker, CHPY holds a multi-stock portfolio of semiconductor industry leaders, aiming to provide a more stable yield profile within the volatile technology sector.

Core Strategy and Operations

  1. Direct Equity Portfolio: The fund maintains long positions in 15 to 30 publicly traded semiconductor companies, such as NVIDIA, Broadcom, and Advanced Micro Devices. This allows for natural capital appreciation and corporate dividend collection, supplemented by the fund's derivative overlay.
  2. Weekly Income Generation: In 2026, CHPY follows a weekly distribution schedule. Income is primarily harvested by selling call options on the fund's individual holdings or semiconductor indices. These premiums are designed to offset minor downturns, though the fund remains subject to broader market losses.
  3. Operational Efficiency: CHPY maintains a gross expense ratio of approximately 0.99%. By holding underlying shares rather than a fully synthetic position, the fund aims to balance aggressive yield with long-term NAV preservation during semiconductor bull cycles.

Competitive Landscape

CHPY serves as a diversified alternative to single-stock funds like the YieldMax NVDA Option Income Strategy ETF and the YieldMax AMD Option Income Strategy ETF. It also competes with the VanEck Semiconductor ETF for traditional exposure. For investors seeking a broader tech focus, it is often compared to the YieldMax AI & Tech Portfolio Option Income ETF or the YieldMax Universe Fund of Option Income ETFs.

Strategic Outlook

Management focuses on capturing the "volatility risk premium" inherent in high-growth hardware stocks. By utilizing a mix of standardized and FLEX options, the fund seeks to optimize its strike prices to minimize upside capping during sector rallies. CHPY remains a tactical tool for income-oriented investors who want exposure to the AI hardware boom without the concentration risk of single-name derivative funds.