The Ultra Option Income Strategy ETF distributes weekly premiums tied to high-beta stocks, raising concerns over principal erosion.
The Ultra Option Income Strategy ETF (ULTY) has distributed between $0.34 and $0.52 per share weekly in 2026, funded by selling calls on volatile stocks like Coinbase and Rocket Lab. Payouts fluctuate with the VIX, reflecting the strategy’s sensitivity to market volatility.
ULTY’s $2.5 billion portfolio focuses on high-beta equities, with holdings including Rocket Lab (7.6% of assets) and Robinhood (7.1%). The fund’s 1.24% expense ratio and covered-call structure cap upside potential during market rebounds, limiting long-term growth.
Investors are weighing the appeal of steady income against the risk of principal depletion, as premiums may not sustain distributions amid prolonged volatility.