fool.com·Apr 17, 2026
Ultra-high-yield covered call ETFs, such as the YieldMax MSTR Option Income Strategy ETF, have gained popularity for their potential to generate significant yields from option income, especially in volatile markets like Bitcoin. However, investors need to carefully assess the associated risks, as the high yields may not justify the potential losses in share prices.
Consider the risk-reward profile before investing in ultra-high-yield single stock covered call ETFs like the YieldMax MSTR Option Income Strategy ETF, which offers a 75% yield. While these funds can offset some losses from volatile stocks like Bitcoin-linked MSTR, the high yield often comes with significant risks that need thorough evaluation.