Defiance Launches QQQY, the First ETF to Utilize Daily Options for Enhanced Income

The first exchange traded fund (ETF) to trade in "zero-day-to-expiry" options, which are contracts with a maturity of 24 hours or less, has launched in the US. The Defiance Nasdaq Enhanced Option Income ETF (QQQY) has been listed on the Nasdaq stock exchange, with a sister product, the Defiance S&P 500 Enhanced Option Income ETF (JEPY), set to launch next week. These ETFs will sell zero-day put options and have similar pay-off structures to covered call ETFs. Zero-day options have surged in popularity, accounting for 43% of overall S&P 500 options volume. The ETFs aim to generate daily premium income and appeal to investors seeking high-income investment strategies. However, some experts have raised concerns about the complexity and risks involved in options-based strategies.