YieldMax META Option Income Strategy ETF (FBY) Covered Calls

The YieldMax META Option Income Strategy ETF is an actively managed fund designed to provide weekly income through a synthetic covered call strategy on Meta Platforms, Inc. The fund seeks exposure to Metas share price movements, subject to a cap on potential investment gains, while generating high-frequency cash flow from option premiums. It is intended for investors looking to harvest the volatility of social media and metaverse growth into a regular income stream.

You can sell covered calls on YieldMax META Option Income Strategy 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 FBY (prices last updated Fri 4:16 PM ET):

YieldMax META Option Income Strategy ETF (FBY) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
12.00 -0.11 11.89 12.24 233K - 0.0
Covered Calls For YieldMax META Option Income Strategy ETF (FBY)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 12 0.00 12.24 -2.0% -48.7%
Mar 20 12 0.00 12.24 -2.0% -17.0%
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Extended Business Description

YieldMax META Option Income Strategy ETF is a specialized financial vehicle that allows investors to generate aggressive income from Meta Platforms without owning the underlying stock. By utilizing a "synthetic covered call" strategy, FBY captures the high implied volatility premiums associated with the parent company of Facebook, Instagram, and WhatsApp.

Core Strategy and Operations

  1. Synthetic Exposure: The fund does not hold physical shares of Meta Platforms. Instead, it creates synthetic long exposure using a combination of purchased call options and sold put options. This replication strategy allows the fund to track Meta’s price action while keeping the majority of its capital in short-term U.S. Treasury Bills, which act as collateral and provide secondary interest income.
  2. Capped Upside for Weekly Income: To generate distributions, FBY sells (writes) short-term call options on Meta. The premiums collected from these trades are the primary driver of the fund’s yield. In exchange for this income, investors accept a "cap" on upside gains; if Meta’s stock price skyrockets during a particular week, the fund will only participate in the gains up to the strike price of the sold calls.
  3. Distribution Frequency and NAV Health: As of 2026, FBY has transitioned to a weekly distribution schedule. While this provides constant cash flow, it also increases the risk of Net Asset Value (NAV) erosion. During periods where Meta stock is flat or declining, a significant portion of the weekly payout may be classified as Return of Capital (ROC), which can lower the investor's cost basis but also decrease the fund's total value over time.

Competitive Landscape

FBY is a key component of the YieldMax tech-income suite, often paired with the YieldMax AMZN Option Income Strategy ETF and the YieldMax GOOGL Option Income Strategy ETF. For traders seeking 2x bullish leverage on Meta rather than income, the Direxion Daily META Bull 2X Shares is the primary alternative. It also faces competition from broader derivative income funds like the JPMorgan Nasdaq Equity Premium Income ETF, though FBY offers much higher, stock-specific volatility exposure.

Strategic Outlook and Innovation

The fund is managed with a gross expense ratio of 1.06% as of February 2026. The managers dynamically adjust strike prices based on market conditions to maximize income while attempting to minimize the impact of "capped" gains during Meta’s earnings rallies. FBY is best suited for tactical investors who believe Meta’s stock will remain in a sideways or slightly bullish range, as the strategy thrives in high-volatility, non-trending environments. It remains a non-diversified fund with significant risk; a major decline in Meta’s share price will result in a loss for the fund that option premiums alone cannot offset.