YieldMax DKNG Option Income Strategy ETF (DRAY)

The YieldMax DKNG Option Income Strategy ETF (DRAY) is an actively managed fund from YieldMax ETFs, advised by Tidal. Its primary goal is to generate current income, with a secondary aim of providing some exposure to the share price of DraftKings, the online sports betting and gaming company.

The fund does not own DraftKings stock directly. Instead it builds synthetic long exposure with call and put options and sells call options against that position, a synthetic covered-call strategy. The option premiums fund regular distributions, while the sold calls limit how much the fund can participate in rallies in DraftKings shares. The fund remains exposed to most declines in the stock, and the bulk of its assets is held in short-term U.S. Treasury securities as collateral.