YieldMax Ultra Option Income Strategy ETF (ULTY) Covered Calls

The YieldMax Ultra Option Income Strategy ETF is an actively managed fund that seeks to generate high current income by employing covered call strategies on a concentrated portfolio of volatile U.S.-listed equity securities. Unlike other YieldMax funds tied to a single asset, ULTY targets 15 to 30 individual stocks selected primarily for their high implied volatility, aiming to harvest outsized option premiums for distribution to shareholders.

You can sell covered calls on YieldMax Ultra 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 ULTY (prices last updated Fri 4:16 PM ET):

YieldMax Ultra Option Income Strategy ETF (ULTY) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
35.35 +1.34 35.19 35.35 820K - 0.0
Covered Calls For YieldMax Ultra Option Income Strategy ETF (ULTY)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 35.5 0.00 35.35 0.0% 0.0%
Mar 20 35 0.05 35.30 -0.8% -6.8%
Subscribers get access to the full covered call chain, and more features.

Want to make money with covered calls?  Sign Up For A Free Trial

Extended Business Description

YieldMax Ultra Option Income Strategy ETF (ULTY) is a high-octane income vehicle designed to capitalize on market volatility. While most YieldMax ETFs track a specific underlying stock or a broad index, ULTY is "unconstrained," allowing its management team to rotate into any U.S. equity with high implied volatility to maximize option premium income.

Core Strategy and Selection Process

  • Volatility-Driven Selection: The advisor typically selects 15 to 30 underlying securities (though it can hold as few as five) based on high levels of implied volatility. This tech-heavy and speculative focus frequently leads to holdings in sectors like AI, crypto-mining, and high-growth biotechnology.
  • Synthetic & Direct Covered Calls: ULTY generates income by selling call options. Depending on market conditions, the fund may hold the underlying stocks directly or use synthetic positions (combinations of options and cash) to replicate stock exposure while collecting premium.
  • Weekly Distribution Schedule: As of February 2026, ULTY operates on a weekly distribution model, paying out cash flow every Thursday. These payouts are primarily sourced from option premiums but may include a significant portion of Return of Capital (ROC) during periods of NAV erosion.

Portfolio Characteristics and Risks

Because ULTY pursues the "Ultra" volatility of the market, it carries a higher risk profile than standard covered call funds. The fund’s NAV is highly sensitive to broad market sell-offs in the speculative tech sector. Furthermore, while the distributions are among the highest in the ETF space, the strategy caps the upside potential of the underlying stocks during massive rallies.

Expense Ratio and Peer Comparison

As of February 2026, ULTY carries a gross expense ratio of 1.40%, which is currently reduced to a net expense ratio of 1.30% via a contractual fee waiver. It serves as a more aggressive alternative to the YieldMax Universe Fund (YMAX) and the YieldMax Magnificent 7 Fund (YMAG). Its most direct competitor for high-volatility derivative income is the YieldMax Ultra Short Option Income Strategy ETF (SLTY).