YieldMax ETFs chief strategist Mike Khouw explains how the firm's options-based ETFs use covered call spreads rather than traditional covered calls, targeting roughly 80% participation in outsized upside moves while still generating monthly income for investors. Speaking to Proactive's Stephen Gunnion, Khouw outlined the difference: by selling an upside call and buying a higher-strike call above it, YieldMax avoids capping gains entirely when a stock makes an unusually large move. On who these products suit, Khouw said they are designed for investors seeking a balance between equity participation and income - a substitute for the dividend-paying stocks that are less common today. He described them as 'equity light': more equity exposure than a bond, less than a pure stock holding, with some downside volatility reduction built in through the spread structure. Read Proactive's Editorial Policy here: https://www.proactiveinvestors.co.uk/pages/editorialPolicy#YieldMaxETFs #YMAG #coveredcall #optionsETF #incomeInvesting #HanETF #MSTY #CHPY #ETFincome #dividendAlternative