Tidal Trust II YieldMax Short NVDA Option Income Strategy ETF(AMEX:DIPS)

DIPS pursues monthly income and inverse exposure to Nvidia stock (NVDA). It employs a synthetic covered put strategy, leveraging options to achieve its objectives. The strategy places a cap on potential gains when the shares decrease in value. Investors are subject to 100% loss if the shares appreciate in value. This approach involves selling NVDA call options and concurrently purchasing NVDA put options, typically with terms ranging from three to six months and strike prices closely aligned with the current NVDA share price. Additionally, DIPS writes put option contracts on NVDA to generate income, usually with contracts expiring within one month and strike prices approximately 0%-15% below the current NVDA share price. To support its synthetic covered put strategy, DIPS holds short-term US Treasury securities as collateral. DIPS also purchases out-of-the-money (OTM) call options to manage potential losses from its short exposure to NVDA, especially in scenarios of significant stock appreciation. Note: DIPS does not directly invest in Nvidia stocks, and investors are not entitled to any NVDA dividends.