Covered Call ETF Calculator
Classify covered call ETFs from 1st to 4th generation and YieldMax at a glance, then backtest on real data what would have happened if you had used the distributions to buy the underlying.
Covered call generations
Even when they are all called "covered call," the character changes completely with how the options are sold. With each generation they have evolved toward higher upside participation.
Gen 1 100% ATM covered call
Sells 100% at-the-money (ATM) calls on the whole index. Distributions are high, but almost all bull-market gains are given up. Over long holding periods, principal (NAV) tends to slowly erode.
Gen 2 Active · partial coverage
Actively picks holdings and covers only part of them with ELNs/options. A middle-ground design that keeps some upside open while paying a monthly distribution.
Gen 3 OTM · target distribution
Sells out-of-the-money (OTM) calls or dynamically adjusts the coverage ratio to greatly raise index-upside participation. Manages the distribution rate toward a target (around 8-10%).
Gen 4 0DTE daily options
The newest approach, using zero-days-to-expiry (0DTE) options or tax-efficient index options to chase upside participation and high distributions at once. QDTE, XDTE, RDTE and QDTY pay weekly.
YieldMax single-stock synthetic covered call
Runs covered calls by synthesizing single stocks such as Tesla and Nvidia with options. Distribution rates reach tens of percent per year, but the risk of principal swings and NAV erosion is the highest.
₿ BTC Bitcoin covered call
Sells call options on a Bitcoin ETF to convert volatility into cash. In exchange for giving up Bitcoin's big rallies, it pays a weekly distribution.
Dashboard — how much it rose, how much it pays
Based on real Yahoo Finance data. Yield (TTM) is the sum of the last 12 months of distributions ÷ current price; total return assumes all distributions were reinvested (pre-tax) into the same ETF.
※ Since-inception returns are measured from the data start date (usually the listing date). Gen 4 and YieldMax have short histories, so their figures have limited statistical meaning.
Frequently Asked Questions
Do covered call ETFs ultimately lose to the underlying?
It depends on the period. In strong bull markets, call selling caps the upside, so even reinvesting distributions struggles to keep up with the underlying's total return. In sideways or mildly falling markets, the option premium acts as a cushion and can beat the underlying. The most accurate way is to try different periods yourself in the backtest tab on this page.
Why is the tax field blank by default?
Because tax on distributions depends entirely on where you live and the fund's domicile. Withholding on U.S.-listed ETFs, local dividend income tax and tax treaties all differ by country, so this tool leaves the field blank. Enter the rate that applies to you (many U.S. non-residents face a treaty withholding rate), or leave it blank to see pre-tax figures.
How is "buying the reinvestment target with distributions" actually calculated?
On each ex-distribution date, the distribution equals shares held at that time × distribution per share. After tax, that amount buys the selected asset at that day's close (or the prior trading day if the market is closed). If the asset you accumulate pays dividends (e.g. QQQ), those dividends are reinvested the same way.
Why are YieldMax ETF distributions so unusually high?
Because single stocks like Tesla and Nvidia are far more volatile than an index, so their option premiums are large. However, much of the distribution can be return of capital (ROC), and when the underlying surges the fund fails to keep up while still taking most of the drops — so principal (NAV) can erode quickly. Judging by the distribution rate alone is dangerous.
📐 How leveraged-ETF history is modeled: the historical behavior of 2x/3x leverage is computed as the index's daily change multiplied by the factor (×2, ×3), minus the management fee and financing cost (based on the policy rate). It may differ slightly from actual listed leveraged ETFs due to dividend treatment, rebalancing timing and real-time financing rates, so use for reference only.