Amplify ETFs has launched a new options-based cybersecurity ETF to meet the needs of investors wanting monthly income from a sector more associated with growth than income generation. • What’s driving HAKY shares up?The new fund, referred to as the Amplify HACK Cybersecurity Covered Call ETF (NYSE:HAKY) , will be comprised of shares of the Amplify Cybersecurity ETF (NYSE:HACK) and call options on the ETF, generating income from the premiums of the call options. The ETF seeks a 15% or more annualized option ...

Core Insights - Millions of Americans rely on Social Security benefits, which typically replace about 40% of pre-retirement income, necessitating additional income sources for a comfortable retirement [2][9] - Investment in high-yield ETFs is recommended to supplement Social Security income, providing a potential solution for retirees seeking financial stability [3][9] ETF Analysis - **JPMorgan Equity Premium Income ETF (JEPI)**: Invests in S&P 500 companies and employs a covered call strategy to generate consistent income for investors [4] - **JPMorgan Nasdaq Equity Premium Income ETF (JEPQ)**: Similar to JEPI but focuses on Nasdaq-100 stocks, offering exposure to tech and growth sectors, which may increase income potential but also involves higher volatility [5] - **SPDR Portfolio S&P 500 High Dividend ETF (SPYD)**: Targets top-yielding stocks within the S&P 500, investing in established companies with a strong dividend history [6] - **Global X NASDAQ-100 Covered Call ETF (QYLD)**: Invests in NASDAQ-100 stocks and uses a covered call strategy, providing consistent cash flow suitable for retirement [7] - **iShares Emerging Markets Dividend ETF (DVYE)**: Focuses on high dividend yield companies in emerging markets, presenting a riskier investment profile with potential for higher returns [8]

Core Viewpoint - Starbucks is experiencing renewed optimism following an upgrade to outperform by William Blair, with expectations for its first domestic comparable sales gain in two years, potentially leading to a positive full-year outlook for comparable sales [1] Financial Performance - Starbucks is set to report earnings on Wednesday, with analysts anticipating a turnaround in performance based on recent positive metrics from both China and domestic markets [11] - The company has seen a 14% increase in stock price in January, indicating a potential recovery after a prolonged decline [10] Market Position - Starbucks has underperformed compared to its consumer discretionary sector and broader markets, with a decline of over 2% year-to-date [3] - The stock is currently trading around $96, with notable trading levels identified at $90, $94, and $97, which may serve as key resistance or support levels [4][5] Technical Analysis - Short-term moving averages are diverging from longer-term averages, suggesting potential improvement in momentum, although caution is advised due to the sensitivity of these indicators [7] - The Relative Strength Index (RSI) is just above 70, indicating a potential risk of a pullback if the stock does not maintain its upward momentum [8] Options Strategy - A covered call strategy is suggested for investors looking to capitalize on the stock's dividend yield of approximately 2.5%, allowing for income generation while holding shares [12] - The strategy involves selling out-of-the-money calls against owned shares, with a specific example of selling a January 30th 100 strike call, which could provide additional premium income [13][14]

Core Viewpoint - YieldMax COIN Option Income Strategy ETF (CONY) has been disappointing for many investors due to its strategy of writing covered calls against Coinbase Global, Inc. (COIN) [1] Group 1 - The ETF is designed to generate income through covered call writing, which involves selling call options on the underlying asset, Coinbase [1] - Investors have expressed frustration with the performance of the high-yield ETF, indicating potential issues with its strategy or market conditions [1]

Core Insights - The current market offers various ETFs with yields above 5%, appealing to income investors seeking better returns than traditional 2% or 3% yields [1] - These ETFs are established products with clear strategies for generating elevated income, though higher yields come with increased risk [1] ETF Summaries - The JPMorgan Equity Premium ETF (JEPI) has an 8.19% dividend yield, providing an annual dividend of $4.72 through a combination of large-cap US stocks and a covered call strategy [4][5] - The payout ratio for JEPI is 205.55%, indicating a significant portion of income is derived from options premiums rather than traditional dividends, with a distribution growth rate of 11.94% [5] - The Global X SuperDividend ETF (SDIV) offers the highest yield at 9.17%, with a monthly dividend of $2.31, investing in the 100 highest-yielding stocks globally [6] - SDIV has a declining distribution rate of -1.33% and a payout ratio of 101.39% [7] - The iShares Emerging Markets Dividend ETF maintains a healthier payout ratio of 48.44%, but has experienced a distribution decline of 39.94% due to emerging market volatility [7]

Market Overview - The crypto market experienced minimal volatility, with major CoinDesk indexes moving less than 1% since midnight UTC, while Bitcoin remains above $94,500, indicating a breakout from range-bound trading [1] - Zcash (ZEC), Aptos (APT), and Polygon (POL) saw slight declines, whereas Dash (DASH) surged by 15%, marking a 141% increase over the past week, highlighting a divergence between crypto and U.S. equities [2] Derivatives and Futures - Approximately $240 million in leveraged crypto futures bets have been liquidated, with market-wide futures open interest decreasing from $146 billion to $143 billion, suggesting a pause in demand for leveraged products [5] - Bitcoin's 30-day implied volatility is now averaging around 2.5%, while Ethereum's (ETH) implied volatility has dropped to its lowest since early 2024 [5] - ZEC's futures open interest fell by 14% in 24 hours, leading to capital outflows in major tokens, while Monero (XMR) saw an 8% increase in open interest [5] Trading Strategies - ZEC's annualized funding rates plummeted to -50%, indicating increased demand for bearish positions, which may lead to a potential short squeeze [5] - In the options market, a significant short position in Bitcoin's $112,000 call expiring on February 6 was noted, possibly part of a covered call strategy [5] - For Ethereum, block flows indicated a preference for the iron condor strategy, which profits from a range-bound market [5] Altcoin Performance - DASH's performance is seen as a positive indicator for the broader altcoin market, with Tezos (XTZ) also showing strength, rising by 8.3% [5] - The CoinDesk 80 Index (CD80) tracking a wider basket of altcoins is up by 0.68% since midnight, while the CoinDesk 20 (CD20) remains relatively unchanged, suggesting strength among altcoins during a consolidation phase [5] - Traders are monitoring the U.S. market open for potential volatility, especially as weekends typically experience low volume and liquidity [5]

Core Insights - Vanguard's Global X Nasdaq 100 Covered Call ETF (GPIX) offers a strategy that combines stock ownership of the Magnificent 7 with a covered call approach, allowing investors to earn income while participating in tech growth [1][2] Investment Strategy - GPIX holds a concentrated portfolio of the Magnificent 7, which includes major tech companies like Apple, Microsoft, Amazon, Alphabet, Nvidia, Tesla, and Meta, and sells call options on these stocks to generate income [2][3] - The income generated from selling options is passed on to investors, providing cash flow even when stock prices are stagnant, effectively allowing investors to be compensated for holding these stocks [3] Income and Risk Management - The covered call strategy limits some upside potential, as the fund may have to sell shares if stock prices exceed the option strike price, which can reduce overall gains [4] - In volatile or flat markets, the premiums collected from options can act as a buffer against potential losses, making GPIX a more stable investment option [4][5] Performance Context - GPIX has shown moderate returns by combining stock performance with income from options, performing well in sideways or choppy markets, although it may not match the returns of a plain Nasdaq ETF during strong rallies [6] Target Investor Profile - GPIX is suitable for income-seeking investors, moderate-risk growth investors wanting exposure to tech without full volatility, and those looking to diversify their portfolios with a product that behaves differently from standard growth ETFs [8] - The ETF allows investors to maintain tech exposure while managing risk, especially in a market adjusting from mega-cap tech to mid-caps and other sectors [8] Current Market Relevance - In early 2026, the tech market has shown unpredictability, with high valuations and potential for corrections, making GPIX an appealing option for investors wanting to stay invested in top innovators while reducing short-term risk [9] - GPIX provides partial participation in growth with income to cushion against volatility, which is increasingly attractive as interest rates remain moderate [10] Practical Considerations - GPIX charges an expense ratio of 0.60%, which is higher than a standard S&P 500 ETF but reasonable for a covered call strategy [13] - The option premium income may be taxed differently than dividends, and GPIX is best used alongside other growth ETFs to balance income with full growth exposure [13]

Core Viewpoint - The Global X NASDAQ 100 Covered Call ETF (QYLD) offers an attractive 11% yield, but its income sustainability is under significant pressure, warranting caution for retirees [1]. Group 1: Income Generation - QYLD generates income through a covered call strategy on the NASDAQ 100 index, holding major tech stocks like NVIDIA (9.2%), Apple (8.1%), and Microsoft (7.3%) while selling call options on these holdings [2]. - The premiums from call options serve as the primary income source for QYLD, providing consistent monthly cash flow but limiting upside potential during market rallies [2]. Group 2: Dividend Trends - QYLD's annual payouts have decreased by 24% from a peak of $2.67 per share in 2021 to approximately $2.04 in 2025, with monthly payments fluctuating between $0.16 and $0.19 [3][5]. - The fund's income generation is adversely affected in low-volatility bull markets, as the option premiums collected diminish [4]. Group 3: Performance Comparison - Over the past five years, QYLD has returned 44%, significantly underperforming the Invesco QQQ Trust (QQQ), which delivered 100%, resulting in a 56 percentage point gap [7]. - In a 10-year comparison, QYLD's total return stands at 131%, compared to QQQ's 447%, indicating a substantial sacrifice in market gains for QYLD investors [7].

Core Insights - Bitwise Asset Management announced monthly distributions for its Option Income Strategy ETFs, including IMST, ICOI, IMRA, IGME, ICRC, and IETH [1] Distribution Details - ICOI has a distribution of $2.24702 per share with a distribution rate of 140.11% and a 1-year return of -7.33% [2] - IMRA has a distribution of $1.41664 per share with a distribution rate of 100.18% and a 1-year return of -35.18% [2] - IMST has a distribution of $1.30827 per share with a distribution rate of 110.09% and a 1-year return of -47.01% [2] - IGME has a distribution of $2.25546 per share with a distribution rate of 100.15% and a 1-year return of -20.19% [2] - ICRC has a distribution of $2.75890 per share with a distribution rate of 100.07% and a 1-year return of -28.47% [2] - IETH has a distribution of $2.68298 per share with a distribution rate of 100.28% and a 1-year return of -30.17% [2] Performance Metrics - The 30-day SEC yield reflects the dividends and interest earned during the previous month, after deducting the fund's expenses [3] - The net expense ratio for each Option Income Fund is 0.98%, except for IETH, which has a net expense ratio of 0.97% [5]

Core Insights - The article discusses investment strategies involving covered call ETFs, particularly focusing on gold and silver, highlighting their potential for generating income while maintaining a level of safety during economic downturns [1][2][5][6]. Group 1: Investment Strategies - The FT Vest Gold Strategy Target Income ETF provides exposure to gold price movements while generating consistent monthly income through writing call options on gold [2]. - The iShares 20+ Year Treasury Bond Buywrite Strategy ETF utilizes U.S. Treasury bonds and covered call options to enhance income, offering a safer investment compared to typical covered call ETFs [8][9]. - The Ubs Ag Etracs Silver Shares Covered Call ETN tracks silver prices and offers high yields, although it is more aggressive and comes with credit risk due to its nature as a debt note [11][13]. Group 2: Yield and Performance - A $500,000 portfolio can generate a monthly income of $7,700, translating to an annual yield of 18.5%, achievable through strategic allocation among high-yield ETFs [3][5]. - The IGLD ETF yields 7.39% with an expense ratio of 0.85%, making it a competitive option for those seeking gold exposure [7]. - The SLVO ETN has seen a significant increase in silver prices, leading to a yield of 34.73% and an expense ratio of 0.65%, indicating a potential for substantial returns [13]. Group 3: Market Conditions - Current market conditions favor gold due to central banks stockpiling gold and reduced exports from Russia, which may enhance gold's stability during economic uncertainty [6]. - The recent Federal Reserve interest rate cuts are expected to positively impact long-term bonds, potentially increasing the value of TLTW and TLT ETFs [9][10].