Defiance Nasdaq 100 Weekly Distribution ETF (QQQY) Covered Calls

The Defiance Nasdaq 100 Enhanced Options Income ETF is an actively managed exchange-traded fund that seeks to provide high current income through an innovative options strategy. The fund utilizes daily zero-days-to-expiration (0DTE) put and call options on the Nasdaq-100 Index to generate premium income. It is designed for investors seeking consistent weekly distributions and exposure to tech-heavy equity volatility.

You can sell covered calls on Defiance Nasdaq 100 Weekly Distribution 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 QQQY (prices last updated Wed 4:16 PM ET):

Defiance Nasdaq 100 Weekly Distribution ETF (QQQY) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
22.30 +0.15 22.25 22.37 125K - 0.0
Covered Calls For Defiance Nasdaq 100 Weekly Distribution ETF (QQQY)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 22 0.00 22.37 -1.7% -206.8%
Mar 20 22 0.30 22.07 -0.3% -3.5%
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Core Business and Products

QQQY is a pioneer in the 0DTE (zero days to expiration) income space, focusing on generating aggressive yield from the Nasdaq-100 Index. Unlike traditional monthly covered call funds, QQQY sells options that expire on the same day they are traded. This allows the fund to capture a higher volume of option premiums driven by intraday market volatility. The fund maintains a synthetic exposure to its benchmark, meaning it uses a combination of cash, treasuries, and options contracts rather than holding all 100 underlying stocks directly.

Competitive Landscape

The market for daily and weekly income ETFs has become highly competitive. QQQY competes directly with other index-based income products that offer high distribution targets. Key rivals with active options markets include the JPMorgan Nasdaq Equity Premium Income ETF and the NEOS Nasdaq-100 High Income ETF. Investors also frequently compare it to the Roundhill Innov-100 0DTE Covered Call Strategy ETF, which utilizes a similar daily expiration framework. Because it tracks the tech-heavy Nasdaq, it is often held alongside or instead of the standard Invesco QQQ Trust.

Strategic Outlook and Innovation

The fund's strategy relies on the monetization of volatility. By focusing on ultra-short-term options, management seeks to limit "gap risk" that can occur overnight, as most positions are opened and closed within a single trading session. Future success for the fund is tied to the continued liquidity of the index options market and the ability to maintain a stable net asset value while paying out significant distributions. Innovation in this sector involves refining the strike selection process to balance the immediate need for high premiums with the desire for some participation in the upward movement of the underlying tech sector.