Analysis

Key stats

About Tidal Trust II Defiance S&P 500 Target Income ETF

SPYT is actively managed which seeks daily income and consistent monthly distributions by utilizing an index credit spread option strategy. The strategy involves daily selling of S&P 500 credit call spreads that are either at-the-money or near-the-money, with near-term expirations, and buying call options at a higher strike price. The sold option positions become profitable if the S&P 500 Indexs value increases above the call spreads cap. Additionally, the fund targets an annual income level of 20% and aims to hold cash or US Treasurys up to 10% of the portfolio as collateral for the option strategy. Even during periods of adverse market conditions, the fund will not seek defensive positions, nor directly or fully participate in the gains of the index. As such, the funds risk and return potential will fluctuate daily.