"The fund's target is straightforward when said out loud, but more complex to deliver as it looks to generate approximately 3% per month in option premium income, equating to 36% annualized yield."
"The portfolio is split into two components, with roughly 30% to 60% of the fund writing out-of-the-money covered calls on XRP exposure and collecting premium income while preserving some upside within the strike range."
"One important structural note: XRPM does not hold XRP directly. Instead, returns are generated through option strategies tied to XRP's price exposure, not through ownership of the underlying cryptocurrency."
The Amplify 3% Monthly Premium Income ETF seeks to bridge the gap between income investing and cryptocurrency volatility. It aims to generate approximately 3% monthly income through an actively managed covered call strategy using weekly options. The fund allocates 30% to 60% for writing out-of-the-money covered calls on XRP while maintaining a long-only position for potential upside. This structure allows for income generation without fully capping the growth potential of XRP. Returns are derived from option strategies rather than direct ownership of XRP.
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