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Author: Admin | 2025-04-27
The hassle of trading options directly."This ETF does not use Bitcoin futures. Instead, it uses IBIT's options chain. YBTC begins by buying an IBIT call and selling an IBIT put at the same strike price and expiration date, which creates a synthetic stock position. Then, the ETF sells IBIT calls, which creates income but caps upside. YBTC is currently paying a 91.6% distribution yield and is also one of the few ETFs to pay on a weekly basis.Roundhill Ether Covered Call Strategy ETF (YETH)Investors who own physical Ethereum can earn yield from staking crypto. However, ETF investors interested in Ethereum can mimic these results with YETH. This ETF uses the same synthetic covered call strategy as YBTC does, but with the ProShares Ether ETF (EETH) as its underlying asset. Unlike ETHA, EETH is an older Ethereum futures ETF, but it has an options chain available.EETH's web page provides some crucial details for investors. Notably, it discloses how much remaining upside the covered call overlay has and the time until expiration. The best-case scenario for covered call ETFs like YETH is the option expiring out of the money and the investor keeping the premium. YETH currently pays an 88.3% distribution yield and pays income on a monthly basis.
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