{"date":"2025-08-29T00:00","headerImageUrl":"https://structuredproducts-ch-pub-uat.leonteq.com/product-news/product-homepage-banner/msty_leonteq-structured-products_product+homepage+banner.jpg","subTitle":"Unlock Higher Income From Strategy Inc.","windowTitle":"YieldETP+ on Strategy 115% Covered Call Index","category":"investment-themes","title":"YieldETP+ on Strategy 115% Covered Call Index","body":"

Strategy Inc. (Bloomberg: MSTR) is a highly volatile, widely followed stock \u2013 but like many popular names, it currently pays no dividend. The YieldETP+ on the Strategy 115% Covered Call Index offers a way to harness Strategy\u2019s volatility and convert it into regular income, while still maintaining limited exposure to Strategy\u2019s performance. It is a rules-based investment strategy designed to generate a monthly cash flow by systematically selling 1-month covered call options on Strategy Inc.<\/p>\n\n\n

How do Covered Call Strategies work?<\/h3>\n

Covered call strategies are a well-established method for enhancing income in equity portfolios. The concept is simple: investors hold a stock (e.g. Strategy Inc.) and sell monthly out-of-the-money call options on that stock. The premiums collected from selling these call options create a steady income stream. Upon expiry of each call option, the outcome depends on the stock\u2019s performance:<\/p>\n\n

Rangebound: <\/b>Investors benefit from both the collected premiums and limited price movement (profit or loss), if any.<\/p>\n\n

Appreciation: <\/b>Investors benefit from both the collected premiums and any price appreciation up to the option strike.<\/p>\n\n

Decline: <\/b>The collected premium provides a partial buffer against losses, though it does not offer full protection.<\/p>\n\n

YieldETP+ Highlights<\/h3>\n

Income-Focused Strategy: <\/b>With many stocks paying little or no dividends, covered call writing offers an alternative income source. Strategy\u2019s high volatility means higher option premiums, boosting yield potential.<\/p>\n\n

Volatility as an Asset: <\/b>YieldETP+ turns volatility into a potential benefit. While it doesn\u2019t protect against losses, the regular income from selling calls can help offset mildly falling markets. Investors are compensated for taking on short-term uncertainty.<\/p>\n\n

Operational Simplicity: <\/b>No options account or active trading is needed. YieldETP+ wraps a monthly call writing strategy into a simple, listed product \u2013 making it easily accessible for investors.<\/p>\n\n

Capital Gains: <\/b>Monthly distributions under YieldETP+ that consist of option premiums are classified as capital gains in Switzerland. (Swiss investors should consult their own tax advisor.)<\/p>\n\n

YieldETP+ on Strategy 115% Covered Call Index<\/h3>\n
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Further information on the construction, functionality and collateralization of the YieldETP+ on Strategy 115% Covered Call Index can be found in the factsheet.<\/p>\n\n