AMZY: Chasing The 50% Yield: Is It Worth The Risk?
Summary
- YieldMax’s AMZN Option Income Strategy ETF offers high yields by using options strategies on Amazon stock, generating around 40-50% annually.
- AMZY’s strategy involves selling synthetic covered calls and credit call spreads, capping upside potential but providing substantial income in stable or moderately bullish markets.
- AMZY closely tracks Amazon’s performance with minor underperformance due to capped gains, making it suitable for income-focused investors comfortable with options-based ETFs.
- AMZY is ideal for those seeking income from Amazon exposure, including retirees and younger investors, but carries significant downside risk tied to Amazon’s stock volatility.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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