YieldMax Bitcoin Option Income Strategy ETF (YBIT) Covered Calls

The YieldMax Bitcoin Option Income Strategy ETF is an actively managed fund that seeks to generate current income and provide exposure to the share price of Bitcoin-linked exchange-traded products. The fund employs a synthetic covered call strategy, using a combination of options contracts and U.S. Treasury holdings. It is designed for investors who want to participate in Bitcoin price movements while collecting high-frequency premiums through a weekly distribution schedule.

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

YieldMax Bitcoin Option Income Strategy ETF (YBIT) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
25.31 +2.16 25.00 25.40 80K - 0.0
Covered Calls For YieldMax Bitcoin Option Income Strategy ETF (YBIT)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 25 0.05 25.35 -1.4% -34.1%
Mar 20 25 0.50 24.90 0.4% 3.4%
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Extended Business Description

YieldMax Bitcoin Option Income Strategy ETF (YBIT) is a specialized income vehicle designed to capitalize on the high volatility of the cryptocurrency market. Unlike traditional spot Bitcoin funds, YBIT uses a derivative-based approach to generate consistent cash flow while maintaining indirect exposure to the price action of digital assets.

Core Strategy and Operations

  • Synthetic Covered Call Strategy: The fund does not own Bitcoin directly. Instead, it creates a "synthetic long" position by simultaneously purchasing call options and selling put options on Bitcoin-linked ETPs, such as the iShares Bitcoin Trust. To generate income, the fund sells call options against this synthetic position, harvesting the premiums produced by Bitcoin’s price swings.
  • Weekly Distribution Model: YBIT is designed for investors seeking high-frequency liquidity. The fund operates on a weekly distribution schedule, aiming to declare and pay out distributions every week. These payouts are primarily sourced from the option premiums collected, though they may include a return of capital depending on market performance.
  • Treasury-Backed Collateral: The fund maintains a significant portion of its assets in short-term U.S. Treasury securities. This cash management strategy serves as collateral for the options overlay and provides a baseline of interest income to support the fund’s overall distribution goals.

Investment Considerations

Because YBIT writes call options, its potential for capital appreciation is capped during rapid Bitcoin rallies. However, the high-yield distributions are intended to provide a partial buffer during periods of market decline or sideways trading. The fund is best suited for tactical income investors who are comfortable with the unique risks of synthetic derivative strategies and the high volatility inherent in the crypto sector.

Competitive Landscape

YBIT is a primary competitor to other yield-focused Bitcoin products, most notably the Roundhill Bitcoin Covered Call Strategy ETF and the NEOS Bitcoin High Income ETF. While BTCI offers a hybrid approach with direct ETP ownership and a monthly payout, YBIT focuses on a purely synthetic model with a weekly payout frequency. For investors seeking direct, unleveraged exposure without the income overlay, the iShares Bitcoin Trust remains the benchmark for the sector.