Key stats
About Tidal Trust II YieldMax BABA Option Income Strategy ETF
Expense ratio
0.99%
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Inception date
Aug 8, 2024
BABO aims to generate monthly income while providing exposure to the price returns of the ADR of Alibaba Group Holding Limited (BABA), subject to a cap on potential gains. It utilizes a synthetic covered call strategy via standardized exchange-traded and FLEX options, consisting of i) synthetic long exposure, ii) covered call writing, and iii) US Treasurys. The synthetic long exposure seeks to replicate the price movements of BABA by buying and selling one- to six-month at-the-money calls and puts. The short put positions fully expose investors to the downside of the stock. The fund writes call options expiring in one month or less, with a strike price of 0%-15% above BABA's share price. This generates income but limits participation in potential gains. To seek greater participation in BABA's potential appreciation in the short term, the fund may opportunistically write credit call spreads. Note: the fund does not invest directly in BABA stocks and thus, is not entitled to dividends.
Classification
What's in the fund
Exposure type
Government
Stock breakdown by region
Displays a symbol's price movements over previous years to identify recurring trends.