YieldMax Short COIN Option Income Strategy ETF (FIAT) Covered Calls

The YieldMax Short COIN Option Income Strategy ETF is an actively managed fund that seeks to provide weekly income through a synthetic covered put strategy on Coinbase Global, Inc. The fund aims for inverse exposure to Coinbases daily price movements while generating current income from option premiums. It is designed for investors who are bearish on the crypto-exchange giant or seeking to hedge digital asset exposure, converting high stock volatility into a frequent stream of cash payouts.

You can sell covered calls on YieldMax Short COIN 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 FIAT (prices last updated Fri 4:16 PM ET):

YieldMax Short COIN Option Income Strategy ETF (FIAT) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
31.96 -3.38 31.80 32.54 187K - 0.0
Covered Calls For YieldMax Short COIN Option Income Strategy ETF (FIAT)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 32 0.20 32.34 -1.1% -26.8%
Mar 20 32 1.40 31.14 2.8% 23.8%
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Extended Business Description

YieldMax Short COIN Option Income Strategy ETF is a specialized derivative-income vehicle that provides inverse (bearish) exposure to Coinbase while prioritizing aggressive, high-frequency cash flow. As a key member of the YieldMax "Short" suite, FIAT utilizes a "synthetic covered put" strategy, allowing investors to harvest premiums from the significant implied volatility of the crypto-exchange market even if the underlying stock trades sideways or declines moderately.

Core Strategy and Operations

  1. Synthetic Short Exposure: The fund seeks to replicate the daily inverse performance (-100%) of Coinbase using a synthetic combination of options. By purchasing put options and selling call options, the fund mimics a short position without the margin requirements or borrowing costs typically associated with physically shorting high-borrow-cost equities in the fintech space.
  2. Covered Put Overlay for Income: To generate its yield, the fund writes (sells) out-of-the-money put options on Coinbase. The premiums collected from these sales are the primary driver of the fund’s payouts. However, because the fund is selling puts, its gains from a massive Coinbase "crash" are "capped" at the strike price of those sold puts, meaning it will not fully participate in catastrophic downside moves.
  3. Weekly Distributions and Volatility: As of early 2026, FIAT has successfully transitioned to a weekly distribution schedule. While this offers constant liquidity for income seekers, the fund is subject to significant NAV erosion if Coinbase enters a sustained bull run. Because crypto-linked equities often experience "short squeezes," management utilizes out-of-the-money call options to help cap potential losses from sudden upward price spikes.

Competitive Landscape

FIAT serves as the bearish counterpart to the YieldMax COIN Option Income Strategy ETF. Its most direct bearish competitors include the ProShares Short Bitcoin Strategy ETF and the ProShares Short Ether Strategy ETF for those seeking broader crypto-inverse exposure. Within the YieldMax family, it is often paired as a hedge alongside the YieldMax MSTR Option Income Strategy ETF or the YieldMax Short TSLA Option Income Strategy ETF. It also competes for tactical bear capital with the YieldMax Short MSTR Option Income Strategy ETF.

Strategic Outlook and Innovation

The fund is actively managed with a gross expense ratio of approximately 0.99% to 1.00%. The management team focuses on dynamic strike selection to balance high income generation against the extreme "gamma" risk associated with crypto-correlated stocks. In the 2026 market, FIAT is a primary tool for "crypto-skeptics" or institutional hedgers who believe the digital asset exchange market is overextended but want to be paid a premium while waiting for a valuation reset. However, the fund is non-diversified and carries substantial risk; its primary goal is income, and the covered put overlay structurally limits its performance during the very price "crashes" it is designed to track.