YieldMax DKNG Option Income Strategy ETF(AMEX:DRAY)

DRAY aims to generate monthly income while providing exposure to the price returns of DraftKings Inc. (DKNG) stock, subject to a cap on potential gains. The fund utilizes a synthetic covered call strategy via standardized exchange-traded and FLEX options, which consists of three elements: i) synthetic long exposure, ii) covered call writing, and iii) US Treasurys for collateral. The synthetic long exposure seeks to replicate the price movements of DKNG by purchasing and selling at-the-money calls and puts that have one- to six-month terms. To generate income, the fund writes call options with an expiration of one month or less and a strike price of approximately 0%-15% above DKNG's current share price. This limits participation in potential gains if DKNG shares increase in value. The short put positions fully expose investors to the downside of the stock. Note: the fund does not invest directly in DKNG stocks. Thus, investors are not entitled to any DKNG dividends.