YieldMax NVDA Option Income Strategy ETF

NVDY

Market cap $1.43B

Covered call ETFs offer attractive monthly yields, often exceeding 10%, appealing to income-focused investors. Most top covered call ETFs are heavily concentrated in large-cap growth, specifically S&P 500 and Nasdaq-100 exposures. This concentration introduces significant risk, as these ETFs exhibit strong performance correlations and similar downside profiles.

Global X SuperDividend ETF (NYSEARCA: SDIV), Invesco KBW High Dividend Yield Financial ETF (NASDAQ: KBWD), YieldMax TSLA Option Income Strategy ETF (NYSEARCA: TSLY), and YieldMax NVDA Option Income Strategy ETF (NYSEARCA: NVDY) each promise outsized income, but the sources and sustainability of those payouts vary enormously.

YieldMax NVDA Option Income Strategy ETF ( NYSEARCA:NVDY ) advertises a yield that has ranged from 38.73% to as high as 121.82% depending on when you look.

Some ETFs pay you more in dividends over a year than their shares cost today. That sounds like a great deal until you understand why it happens.

Nvidia has been one of the best-performing stocks of the past several years, but it's beginning to move sideways. If that trend continues, layering on an option income strategy could be a way to augment your total return.

I am going to be very blunt. Many retirees say they want income from their portfolio but refuse to sell shares to generate it.

YieldMax ETFs, such as CONY and NVDY, offer extremely high yields but are structurally prone to NAV erosion over time. Reverse splits and declining distributions significantly reduce long-term income potential, undermining the appeal of 'house money' status. Return of capital distributions may offer short-term tax benefits but are not guaranteed and can create unnecessary tax burdens versus owning underlying stocks.

In the era of artificial intelligence (AI), NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) remains an unstoppable processor powerhouse and a darling of the stock market.

CHICAGO and MILWAUKEE and NEW YORK, Feb. 11, 2026 (GLOBE NEWSWIRE) -- YieldMax® ETFs today announced distributions for the YieldMax® Group 2 weekly pay ETFs. Group 2 Distribution Announcement Ex.

NVDY is a covered call ETF on NVDA with a 1.27% TER and competitive yields. It uses Treasuries as collateral, applies a synthetic long strategy on NVDA, and sells calls to generate premiums. This makes distributions linked to IV and the price linked to NVDA's movements.