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SMCY
YieldMax SMCI Option Income Strategy ETF
Tidal Investments LLC
Verdict
AVOID
Weighted score · 2.05 / 5
Fund Identity
What it is, who runs it, where it lives.
The Fund's primary investment objective is to seek current income.
SMCY is an actively managed ETF that employs a synthetic covered call strategy (or synthetic covered call spread strategy) on SMCI to generate options premiums and provide indirect exposure to SMCI's share price returns. The Fund buys SMCI call options and sells SMCI put options to create synthetic long exposure, then writes (sells) short-dated call options against that position to generate income. Collateral is held in short-term U.S. Treasury securities, which also generate income. The Fund seeks weekly cash distributions funded by options premiums and Treasury income.
Ticker
SMCY
Issuer
Tidal Investments LLC
Exchange
ARCX
Inception
2024-09-12 · 1.8 yrs
Mgmt style
Active
Replication
Derivatives (options/futures)
Index-based
—
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 (long ATM call + short ATM put for synthetic long exposure, plus short OTM calls for income) and synthetic covered call spread (same synthetic long plus short OTM call spread: sell lower-strike call, buy higher-strike call)
generates income
Underlying
SMCI (Super Micro Computer, Inc.)
income exposure
WEEKLY
212.9%
DIST. RATE
75% ROC
Ordinary Income
Ordinary Income
Underlying
SMCI (Super Micro Computer, Inc.)
Strategy
Synthetic covered call (long ATM call + short ATM put for synthetic long exposure, plus short OTM calls for income) and synthetic covered call spread (same synthetic long plus short OTM call spread: sell lower-strike call, buy higher-strike call)
Tax
Ordinary Income
The Fund uses standardized exchange-traded and FLEX options on SMCI to synthetically replicate approximately 100% of SMCI price exposure and generate premiums by selling short-dated call options (1-month or less) with strike prices approximately 0%-15% above the current share price. The notional value of the combined options package and Treasuries provides indirect exposure to SMCI equal to at least 95% of the Fund's total assets. The Fund continuously rolls options contracts as they expire or are exercised.
Performance & NAV
Total return vs. the underlying, with drawdown context.
NAV HISTORY · JUN '25 – JUN '26
JUN '25JUN '26
Flat-NAV reinvestment hurdle
144.9%
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
75%
ROC
Return of Capital — destructive75%
Net Investment Income25%
Frequency
Weekly
Dist. rate
212.90%
ROC %
75%
30-day SEC
not reported
Consistency
1 w/o cut
YOC · 1yr-ago buyer
56.8%
Tax Treatment — Ordinary Income
ORDINARY INCOME
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 74.7% of distributions (dollar-weighted across 13 distributions payable 3/27/26–6/22/26). Most recent distribution (6/22/26): 0.0% 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
2026-06-18
Ex-dividend
2026-06-18
Pay date
—
Payback Period
0.5 yr
Dist. Since Incep.
$31.3
Holdings & Concentration
Position sizing, top-name weights, and concentration risk.
Sector Mix · Tilt vs S&P 500
No sector feed for this fund.
Holdings
15
Top-10 Wt.
—
Technical Signal & Liquidity
Moving-average posture and a read on tradability.
Price vs. Moving Averages
$10.2$8.3$6.4$4.5
JUL '25JUN '26
Price $5.23
50-DMA $5.74
200-DMA $6.33
Bearish — 50-DMA below 200-DMA
Price $5.23 is below the 200-day SMA ($6.33); 50-day SMA $5.74. The 50-day SMA sits below the 200-day — an established downtrend, 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
1.2M
Avg dollar volume
$7,893,792
Bid/ask spread
0.15%
Premium/discount
-0.23%
Turnover
133%
Estimated bid/ask spread ~1.28% (wide). Average daily dollar volume ~$7.9M (adequate). This spread is a high-low estimate, not a live quote; the issuer's reported median spread and premium/discount to NAV are shown above when available.
Assets Under Management
Trend: Falling. Source: shares×price (Massive, monthly).
AUM ($)
$102M
$356M$180M$4M
SEP '24JUN '26
SOURCES Massive market-data API, SEC EDGAR filings, issuer disclosures.
SMCY · 2026-06-22
Prepared by denvereyon
Research aid, not investment advice.
Prepared by denvereyon
Research aid, not investment advice.
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