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Start your 7-day free trial XNAS · Active · options-income
SDTY
YieldMax S&P 500 0DTE Covered Call Strategy ETF
Tidal Investments LLC
Verdict
AVOID
Weighted score · 3.40 / 5
Fund Identity
What it is, who runs it, where it lives.
The Fund's primary investment objective is to seek current income.
SDTY is an actively managed ETF that employs a synthetic covered call strategy designed to generate weekly cash distributions from options premiums while providing exposure to the price return of the S&P 500 Index. Each business day the Fund sells out-of-the-money (OTM) 0DTE call options on the S&P 500 Index or Index ETFs and simultaneously holds deep-in-the-money (ITM) call options to establish synthetic long exposure to the Index. The Fund also invests in short-term U.S. Treasury securities and money market funds for additional income.
Ticker
SDTY
Issuer
Tidal Investments LLC
Exchange
XNAS
Inception
2025-02-06 · 1.4 yrs
Mgmt style
Active
Replication
Derivatives (options/futures) — synthetic covered call using sold OTM 0DTE call options plus purchased deep-ITM call options on the S&P 500 Index or Index ETFs
Index-based
— · S&P 500 Index
Leverage
None
Strategy & Options Mechanics
How the portfolio is built and where the income comes from.
PORTFOLIO
Options
actively managed
OPTIONS OVERLAY
Strategy
Synthetic Covered Call: sell OTM 0DTE call options (daily) + buy deep-ITM call options for synthetic long index exposure
generates income
Underlying
S&P 500 Index (SPX) or passively managed ETFs tracking the S&P 500
income exposure
WEEKLY
11.9%
DIST. RATE
82% ROC
Section 1256 (60/40)
Section 1256 (60/40)
Underlying
S&P 500 Index (SPX) or passively managed ETFs tracking the S&P 500
Strategy
Synthetic Covered Call: sell OTM 0DTE call options (daily) + buy deep-ITM call options for synthetic long index exposure
Tax
Section 1256 (60/40)
The Fund sells OTM 0DTE call options each business day to generate options premium income distributed weekly, while purchasing deep-ITM call options to replicate the price return of the S&P 500 Index synthetically. Both standard exchange-traded options and FLEX Options are used; all are cash-settled European-style index options cleared through the OCC. At least 80% of net assets must be invested in 0DTE options referencing the S&P 500 Index.
Performance & NAV
Total return vs. the underlying, with drawdown context.
NAV HISTORY · JUN '25 – JUN '26
JUN '25JUN '26
Flat-NAV reinvestment hurdle
142.4%
Share of each distribution you’d need to reinvest just to hold NAV flat. Higher means more of the yield is your own capital coming back.
Distribution & Tax
Where the yield comes from — and how it’s taxed.
Composition · Recent Distribution
82%
ROC
Return of Capital — destructive82%
Net Investment Income18%
Frequency
Weekly
Dist. rate
11.94%
ROC %
82%
30-day SEC
not reported
Consistency
2 w/o cut
YOC · 1yr-ago buyer
11.5%
Tax Treatment — Section 1256 (60/40)
SECTION 1256 (60/40)
Distribution Composition (Recent)
ROC is not free money — it lowers your cost basis. When shares are sold, capital gains are computed against the lower basis.
Composition · Narrative
Trailing-quarter return of capital averaged 81.6% of distributions (dollar-weighted across 14 distributions payable 3/19/26–6/18/26). Most recent distribution (6/18/26): 100.0% ROC. Single-week ROC is volatile for option-income funds; the dollar-weighted quarter is the steadier read.
Distribution & Return of Capital
Per-month payout split and the running return-of-capital share · last 3 months.
DIST ($/sh)ROC %
Return of capital ($/sh)
Net investment income ($/sh)
Monthly ROC %
Calendar-year ROC (YTD est.)
Distribution Growth & Schedule
Per-period growth of the payout, the latest schedule, and how long distributions take to repay NAV.
Distribution Growth by Lookback Period
Latest Distribution Schedule
Record date
2026-06-17
Ex-dividend
2026-06-17
Pay date
—
Payback Period
8.4 yr
Dist. Since Incep.
$5.8
Holdings & Concentration
Position sizing, top-name weights, and concentration risk.
Sector Mix · Tilt vs S&P 500
No sector feed for this fund.
Holdings
6
Top-10 Wt.
—
Technical Signal & Liquidity
Moving-average posture and a read on tradability.
Price vs. Moving Averages
$42.5$40.0$37.5$35.0
NOV '25JUN '26
Price $42.00
50-DMA $40.96
200-DMA $38.98
Bullish — 50-DMA above 200-DMA
Price $42.00 is above the 200-day SMA ($38.98); 50-day SMA $40.96. The 50-day SMA sits above the 200-day — an established uptrend, no recent crossover. Moving-average signals are a timing aid, not a recommendation — weigh them against the distribution profile and framework score.
Liquidity
Avg daily volume
15K
Avg dollar volume
$600,274
Bid/ask spread
0.26%
Premium/discount
+0.24%
Turnover
0%
Estimated bid/ask spread ~0.14% (tight). Average daily dollar volume ~$0.6M (thin). This spread is a high-low estimate, not a live quote; the issuer's reported median spread and premium/discount to NAV are shown above when available.
Assets Under Management
Source: shares×price (Massive, monthly).
AUM ($)
—
$29M$19M$9M
FEB '25JUN '26
SOURCES Massive market-data API, SEC EDGAR filings, issuer disclosures.
SDTY · 2026-06-22
Prepared by denvereyon
Research aid, not investment advice.
Prepared by denvereyon
Research aid, not investment advice.
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