Quick Read – YieldMax AMZN Option Income Strategy ETF (AMZY) sells upside through covered calls to generate 30-60% yields. – Amazon’s 105% gain since October 2023 produced just 88% total return in AMZY due to capped upside. – Tax-inefficient ordinary income distributions and…
ngle-stock concentration make AMZY strategically hostile to long-term wealth building. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and Amazon wasn’t one of them. Get them here FREE
The YieldMax AMZN Option Income Strategy ETF (NYSEARCA:AMZY) is built around a simple promise: turn Amazon shares into a monthly paycheck. AMZY runs a synthetic covered call on Amazon, generating headline distribution yields that frequently print in the 30% to 60% annualized range. The trouble is that Amazon is a compounder, and the option overlay is structurally designed to sell that compounding away one month at a time.
What AMZY Actually Owns and Why People Buy It The fund uses options to synthesize a long position in Amazon (long call, short put at the same strike), then writes out-of-the-money calls against that exposure. Premiums collected on those short calls fund the monthly distribution. Income investors hold AMZY because it trades around $12 a share, the checks arrive every month, and the headline yield dwarfs anything in traditional fixed income.