Roundhill Magnificent Seven Covered Call ETF (MAGY)

Roundhill Magnificent Seven Covered Call ETF is an income-oriented fund from Roundhill Investments. It provides exposure to the so-called Magnificent Seven U.S. technology giants: Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms and Tesla.

Alongside that equity exposure, the fund writes call options to collect premium income, which it distributes to shareholders on a frequent schedule. Selling calls generates cash flow but caps the fund's participation in strong rallies of the underlying stocks, while the fund still bears most of the downside if those stocks fall.

The strategy is aimed at turning the price volatility of a concentrated group of mega-cap technology stocks into a stream of option income, rather than maximizing capital growth.