GraniteShares YieldBOOST NVDA ETF (NVYY) Covered Calls

The GraniteShares YieldBOOST NVDA ETF is an actively managed fund designed to provide high current income and leveraged exposure to NVIDIA Corp (NVDA). Unlike traditional covered call funds, it generates premiums by selling put options on leveraged ETFs that track 2x Long NVDA performance. In 2026, NVYY is notable for its weekly distribution schedule and its "YieldBOOST" mechanism, which targets outsized payouts by monetizing the extreme volatility of the semiconductor sector.

You can sell covered calls on GraniteShares YieldBOOST NVDA 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 NVYY (prices last updated Fri 4:16 PM ET):

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Extended Business Description

GraniteShares YieldBOOST NVDA ETF is a specialized derivative-income vehicle that seeks to deliver amplified yields while providing 200% (2x) daily performance exposure to NVIDIA Corp. Launched in mid-2025, the fund represents an evolution in the single-stock ETF space, moving beyond simple call-writing to a more complex leveraged put-selling strategy. Managed by GraniteShares Advisors, the fund aims to turn the persistent demand for AI-driven volatility into a consistent weekly paycheck.

Core Strategy and Operations

1. Leveraged Put-Selling Mechanism: The fund achieves its "YieldBOOST" by selling put options on exchange-traded funds that already provide 2x leveraged exposure to NVDA. This creates a "leverage-on-leverage" income effect, allowing the fund to capture higher premiums than standard 1x covered call strategies. The strategy effectively bets that the underlying leveraged NVDA exposure will stay above certain price floors.
2. Weekly Distribution Model: A hallmark of NVYY in 2026 is its weekly payout frequency. Distributions are typically declared on Mondays and paid on Wednesdays, allowing investors to compound or spend income 52 times per year. As of early 2026, the fund has maintained a triple-digit distribution rate, though investors should note that a significant portion—often exceeding 90%—is categorized as Return of Capital (ROC).
3. Collateral Management: To back its aggressive options overlay, the fund maintains over 90% of its net assets in short-term U.S. Treasury bills and cash equivalents. This provides a safety buffer and generates interest income to help offset the fund’s 1.15% net expense ratio.

Competitive Landscape

NVYY is a primary competitor to the YieldMax NVDA Option Income Strategy ETF, though it differs by utilizing puts rather than synthetic calls. It also competes for "AI-yield" capital with the YieldMax AMD Option Income Strategy ETF and the REX FANG & Innovation Equity Premium Income ETF. For traders seeking pure leverage without the income focus, it is often compared to the GraniteShares 2x Long NVDA Daily ETF, which serves as one of its reference assets.

Strategic Outlook and Innovation

In 2026, NVYY has carved out a niche for "aggressive income" seekers who remain bullish on the long-term AI hardware cycle. The fund’s management has refined its 2026 "volatility capture" tactics, adjusting strike prices more dynamically during NVIDIA earnings cycles to protect the Net Asset Value (NAV) from "gap down" risks. However, the fund remains subject to significant downside risk if NVIDIA experiences a sustained correction, as the put-selling strategy provides limited protection in a bear market. With a net expense ratio of 1.15% (capped through 2026), NVYY is the premier high-frequency income tool for those looking to maximize their participation in the ongoing semiconductor supercycle through a regulated, weekly-paying structure.

Want more examples? NVVW Covered Calls | NWBI Covered Calls