YieldMax Magnificent 7 Fund of Option Income ETFs (YMAG) Covered Calls

The YieldMax Magnificent 7 Fund of Option Income ETFs is an actively managed "fund of funds" that seeks to provide current income and exposure to the share price returns of the "Magnificent Seven" companies. The fund invests in seven underlying YieldMax ETFs, each employing a synthetic covered call strategy on a specific tech leader. It is designed for investors who want a diversified, high-yield approach to the dominant drivers of the U.S. equity market in a single vehicle.

You can sell covered calls on YieldMax Magnificent 7 Fund of Option Income ETFs 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 YMAG (prices last updated Fri 4:16 PM ET):

YieldMax Magnificent 7 Fund of Option Income ETFs (YMAG) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
13.31 +0.04 13.23 13.36 738K - 0.0
Covered Calls For YieldMax Magnificent 7 Fund of Option Income ETFs (YMAG)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 13 0.15 13.21 -1.6% -38.9%
Mar 20 13 0.10 13.26 -2.0% -17.0%
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Extended Business Description

YieldMax Magnificent 7 Fund of Option Income ETFs is an innovative "fund of funds" designed to provide high-frequency income through diversified exposure to the most influential technology companies in the world. By holding a basket of specialized YieldMax ETFs, YMAG offers a streamlined way for investors to participate in the "Magnificent Seven" price action while collecting significant option premiums.

Core Strategy and Operations

  1. Equal-Weighted Basket: The fund typically maintains roughly equal exposure to seven underlying YieldMax ETFs: APLY (Apple), AMZY (Amazon), GOOY (Alphabet), FBY (Meta), MSFO (Microsoft), NVDY (NVIDIA), and TSLY (Tesla). The portfolio is rebalanced monthly to ensure no single tech giant dominates the fund’s risk profile.
  2. Weekly Distribution Model: Originally launched as a monthly payer, YMAG transitioned to a weekly distribution schedule by early 2026. This allows investors to receive cash flow every week, sourced from the combined premiums generated by the underlying synthetic covered call strategies.
  3. Synthetic Covered Call Structure: Each underlying ETF in the YMAG portfolio utilizes a "synthetic" strategy (using a combination of call and put options) to replicate the performance of its respective stock while selling call options to generate income. This structure allows for income generation without direct ownership of the underlying shares, though it does cap the potential upside during periods of extreme growth.

Competitive Landscape

YMAG serves as a core holding for income-focused investors who find the individual "Mag 7" ETFs too volatile to manage separately. Its primary broad-market peer is the YieldMax Universe Fund of Option Income ETFs, which holds a much wider array of approximately 20+ underlying funds. For investors seeking a similar strategy with a different management style, the Roundhill Magnificent Seven Covered Call ETF is the most direct competitor. Conversely, those seeking direct 2x exposure without the income focus typically look toward the Roundhill Magnificent Seven ETF.

Strategic Outlook and Fees

As of February 2026, YMAG carries a gross expense ratio of 1.28%, which includes the acquired fees and expenses of the underlying YieldMax ETFs. The fund is positioned as a "yield-maximized" core tech holding for the AI-driven market environment. While the fund provides a buffer through its high distributions, it remains subject to the market risks of the tech sector; significant declines in the Magnificent Seven will result in a drop in NAV. It is best suited for income-oriented investors who prioritize cash flow and want to outsource the management of a complex multi-asset options strategy.