Defiance Nasdaq 100 LightningSpread Income ETF (QLDY)

The Defiance Nasdaq 100 LightningSpread Income ETF (ticker QLDY) is an actively managed exchange-traded fund from Defiance ETFs. Its objective is to generate current income through an options strategy linked to the Nasdaq-100 Index.

Based on its name, the fund uses short-dated option spreads on the Nasdaq-100, selling options to collect premium while buying further out-of-the-money options to define the maximum loss on each position. Collateral is typically held in short-term Treasuries and cash.

The strategy aims to turn option premium into regular distributions rather than to track the index's price return.