Amplify Bitcoin Max Income Covered Call ETF (BAGY)

The Amplify Bitcoin Max Income Covered Call ETF is an actively managed fund from Amplify ETFs that seeks to provide high income linked to the price of bitcoin. It does not hold bitcoin directly; instead it gains exposure through exchange-traded products that track bitcoin, or through options on them.

The fund sells call options on its bitcoin-linked exposure and collects the premiums, which serve as the primary source of its regular distributions. Writing calls generates income but limits the fund's ability to participate in large upward moves in bitcoin's price, while the fund generally remains exposed to bitcoin's declines.

The approach aims to convert part of bitcoin's high volatility into an income stream, with the trade-offs inherent in a covered call strategy.