YieldMax Short COIN Option Income Strategy ETF(AMEX:FIAT)

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