GraniteShares YieldBOOST TSLA ETF (TSYY) Covered Calls

The GraniteShares YieldBOOST TSLA ETF is an actively managed fund that seeks current income and leveraged exposure to Tesla Inc. (TSLA). It generates yield by selling put options on leveraged ETFs that track 2x Long TSLA performance. In 2026, TSYY is recognized for its weekly distribution schedule and its aggressive YieldBOOST mechanism, which monetizes the high implied volatility of the electric vehicle sector while capping potential capital gains.

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

GraniteShares YieldBOOST TSLA ETF (TSYY) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
4.38 +0.03 4.38 4.39 3.3M - 0.0
Covered Calls For GraniteShares YieldBOOST TSLA ETF (TSYY)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 4 0.00 4.39 -8.9% -216.6%
Mar 20 4 0.05 4.34 -7.8% -66.2%
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Extended Business Description

GraniteShares YieldBOOST TSLA ETF is a specialized income-generating vehicle designed to provide investors with a way to monetize the volatility of Tesla Inc. through a leveraged put-selling strategy. Unlike traditional covered call funds that write options on the underlying stock, TSYY targets amplified premiums by selling put options on exchange-traded funds that provide 2x daily leverage on Tesla. This "leverage-on-leverage" approach is designed to maximize distribution potential in the reflexive 2026 auto-technology market.

Core Strategy and Operations

  1. Leveraged Put-Selling Mechanism: The fund seeks to achieve its primary objective by selling out-of-the-money put options on 2x Long TSLA ETFs. This strategy generates significant premium income, as leveraged vehicles naturally exhibit higher implied volatility. The fund essentially profits if the underlying leveraged Tesla exposure remains above specified strike prices, though it faces substantial downside risk during sharp Tesla sell-offs.
  2. Weekly Distribution Policy: A defining operational feature in 2026 is the fund’s transition to weekly payouts. Distributions are typically declared on Mondays and paid on Wednesdays, providing 52 income events per year. As of early 2026, the fund has maintained an exceptionally high distribution rate, frequently characterized by a large percentage of Return of Capital (ROC).
  3. Collateral and Fees: TSYY maintains a significant portion of its net assets in high-quality U.S. Treasury bills and cash equivalents to serve as collateral for its derivative positions. This interest-bearing cushion helps offset the fund’s net expense ratio of 1.15%, which is contractually capped through late 2026.

Competitive Landscape

TSYY is a primary alternative to the YieldMax TSLA Option Income Strategy ETF, which utilizes a synthetic covered call strategy. It also competes for high-yield consumer discretionary capital with the Roundhill TSLA WeeklyPay ETF and the YieldMax AMZN Option Income Strategy ETF. For investors seeking pure leverage without an income overlay, it is often compared to the Direxion Daily TSLA Bull 2X Shares.

Strategic Outlook and Innovation

In 2026, TSYY has become a benchmark for "aggressive income" within the Tesla ecosystem. The fund’s management has refined its "Volatility Pivot" methodology, which adjusts strike selection based on Tesla’s earnings cycles and autonomous driving software release timelines. While the put-selling strategy provides a buffer in flat or slightly bullish markets, the fund remains highly sensitive to "tail risk" and can experience rapid NAV erosion during sustained Tesla downtrends. As of early 2026, TSYY continues to innovate by expanding its collateral management to include short-duration corporate credit, aiming to bolster the underlying "floor" of its distribution capacity while remaining the premier weekly-paying vehicle for Tesla enthusiasts.