Exploring YieldMax ETFs for Generating Monthly Income from Options-based Strategies

For those looking to beef up their dividend income, particularly monthly dividends, this article will briefly overview the YieldMax ETFs which are relatively new to retail investors. These ETFs "seek to generate monthly income by pursuing options-based strategies on one or more underlying securities."  Most retail investors avoid doing options on individual stocks as this is more complicated, risky and requires knowledge and experience in dealing with options.  Most of the YieldMax ETFs have an expense ratio of 0.99% which may seem high to some, however, when considering that these are actively managed, options-based strategies, the expense ratio becomes more reasonable and realistic.  

Investing in the YieldMax ETFs involves a high degree of risk and the potential for loss of principle, so this is something to be aware of.  The individual fund strategies will cap their potential gains if the asset or stock price increases in value. However, the ETFs are still subject to all potential losses if the asset or stock price decreases in value, which may or may not be offset by dividend income received by the fund.

Here is a listing of several of the YieldMax ETFs, their reference asset for the options, the most recent distribution rate, 30-day SEC yield, and expense ratio as of March 31st, 2024.  "The distribution may include a combination of ordinary dividends, capital gain, and return of investor capital."

 
 
I will cover three of these ETFs, which in my opinion, the individual stock price stands a good chance to increase in the coming months which could support healthy monthly dividends.  I will briefly review AMZY, FBY and NVDY. 

       AMZN stock chart as of April 11, 2024 via FastGraphs.com

AMZY seeks to generate monthly dividend income by selling/writing call options on Amazon stock (AMZN). In my prior article from March 12, 2024, my projection was for AMZN stock price to increase to at least $225/share in 2024.  The stock price recently set a new record high closing at $189.05/sh on April 11th. Therefore, with operating cash flow projected to increase substantially in 2024-2026, I stand by my March forecast.  

              AMZY distribution details as of March 31, 2024.  

          AMZY performance as of March 31, 2024
 

               META stock chart as of April 11, 2024 via FastGraphs.com

The ETF: FBY seeks to generate monthly dividend income by selling/writing call options on META stock.  In my prior article from March 12, 2024, my projection was for META stock price to increase to $625/share.  The stock has increased +8.3% since March 12th and this forecast still looks on target with operating cash flow and EPS projections showing significant increases in 2024-2025. 


                    FBY distribution details as of March 31, 2024.  

                   FBY performance as of March 31, 2024


                   NVDA stock chart as of April 11, 2024 via FastGraphs.com

NVDY seeks to generate monthly dividend income by selling/writing call options on Nvidia stock.  NVDA opened at $880/sh on March 12th and peaked at $974/sh on March 25th, which made it close to the $1,000 mark.  However, I still feel that NVDA has the potential to hit or breach $1,000/share in 2024. 

                      NVDY distribution details as of March 31, 2024.  

                NVDY performance details as of March 31, 2024. 

To summarize, the YieldMax ETFs allow the potential for high, but variable, monthly distribution income, access to an actively managed, options-based strategy, and customized risk and income solutions.  I would classify these investments as Very High Risk...High Reward for those looking to beef up their monthly income. 

Relevant External Links to this blog article: 

Thank you for reading and feel free to comment on this blog. 

Disclaimer: This blog has been created for sharing my personal investment ideas only. I do not receive any compensation for this blog or the content within. I am not an investment advisor or professional. This blog is my own personal opinion and is not meant to be a recommendation of the purchase or sale of any stock or ETF. Please do your own due diligence and research before deciding to purchase any investments of your own


Comments

Post a Comment

Popular posts from this blog

AMAT (Applied Materials) is Trading at near Fair Valuation for those in Search of a Great Semiconductor Company!

Image
This morning, August 25th, 2025, I purchased a small amount of shares of AMAT.  The Fastgraphs chart below shows that the stock is trading at near fair valuation.  Thus, we have a great semiconductor company trading at near fair valuation.  If the stock falls more, I will add to my share count and dollar cost average down.     Here is a screen shot of the past 13 year performance of AMAT versus the S&P500:  Notice on the 13-year performance screen shot that with dividends reinvested, a $10,000 investment in October 2012 would be worth $184,000 today versus $56,000 for the S&P500.  AMAT had a compound growth of 25.51% versus a respectable 14.51% on the S&P500.  AMAT's dividend growth rate and compound dividend growth rate were 13-14% which is solid.   I am always in search of great companies that are trading at a fair valuation that have a history of thrashing the S&P500.  They can be difficult to find bu...
Read more

A Few Excellent Stocks Trading at or Near Fair Valuation that are Worth Adding to Positions.... [AMZN, AMAT, NVDA]

Image
 I will be adding modestly to my current positions in the following stocks that are trading near fair valuation that have strong growth projections:  Amazon [AMZN], Applied Materials [AMAT], and Nvidia [NVDA].   My goal is to buy high quality growth stocks (especially tech/AI related) at a reasonable price that have significant upside potential over the next 2-5 years and longer.  Regarding Amazon, here is a 10 year chart of it's performance with analyst projections through FY2027:  The black trace is the history of the stock price up to the present.  The price has generally been following the black "current valuation" line pretty well.  The red line is a projection for the next two years given the stock price continues to follow the "current valuation" line.  It shows potential for the stock to hit $365/sh by the end of 2027.  This is very close to the numbers from my June 27, 2025 article on AMZN.  This would represent a total ret...
Read more

United Health Group (UNH) is a Managed Health Care Stock that is Now Trading at Fair Valuation Levels!!!

Image
  UnitedHealth Group (UNH) stock price has been cut roughly in half since November 2024.  It is currently going through some probes of it's business by the DOJ, but I view this as temporary noise for the company.   Below is a 13 year historical chart of UNH which shows the big price drop.  The black line (stock price) is now trading near the orange (Fair Value Ratio) line.  Warren Buffett and Michael Burry have recently bought shares of UNH recognizing it's much better valuation today.  The stock is not without risks given the DOJ probes that are ongoing, but it also offers tremendous upside value if the business can turn around.    UNH is one of the most popular stocks in top hedge funds and is a dividend growth stock.  It has a yield of 2.91% or $8.84/share annually.  Over the past 13 years, since December 2012, UNH has outperformed the S&P 500 with a $10,000 investment worth $68,000 as of August 27, 2025 versus the $56,201 fo...
Read more