Passive Income with Dividends
Earn "Passive" Income with Dividends
Earlier this year I invested into YieldMax ETF Option Stocks on Webull. They focus on monthly/weekly dividends and are tied to Tech-Giant stocks like Nvidia and AMD. For someone seeking to earn a higher income (maybe to meet income requirements to live abroad) or to earn a higher return than a HYSA, or to simply increase their wealth then these might be investments worth considering!
How they work
NVDY:
-
The fund seeks “current income” by using a “synthetic covered call” strategy linked to the stock NVDA.
-
It implements this by holding U.S. Treasuries/cash as collateral + derivatives (calls and puts) to replicate the stock exposure, then selling (writing) call options over the underlying. This limits upside participation but keeps full downside exposure.
-
Example: its prospectus states that the upside is “subject to a limit” because of the short calls.
AMDY:
-
Similar concept, but linked to AMD (Advanced Micro Devices Inc). The fund uses a synthetic covered call strategy on AMD: indirect exposure to AMD’s share returns + call-writing + U.S. Treasuries as collateral.
-
The prospectus clearly states: “The Fund’s strategy will cap its potential gains if AMD shares increase in value. The Fund’s strategy is subject to all potential losses if AMD shares decrease in value, which may not be offset by income received by the Fund.”
