Defiance ETFs has launched an actively managed “zero day to expiry” (0DTE) ETF on the New York Stock Exchange. The Defiance S&P 500 Enhanced Option Income ETF (NYSE Arca: JEPY) uses daily options to augment income on the S&P 500.
JEPY aims to achieve consistent and outsized monthly yield distributions coupled with equity market exposure to the S&P 500. The fund looks to generate outsized monthly distributions by selling option premiums on a daily basis. It uses daily options to realize rapid time decay by selling in-the-money puts with 0DTE.
See more: “New Defiance EVXX ETF Targets Fastest-Growing Electric Vehicle Companies”
Retail investors have become increasingly interested in the 0DTE market. Some estimate that retail investors make up about 5% of the volume in contracts tied to the S&P 500 that expire within 24 hours. But Cboe Global Markets senior derivatives analyst Jonathan Zaionz told Bloomberg that this figure may be as high as 40%.
Defiance launched JEPY to offer investors more liquid and transparent access to this strategy.
The company’s CEO Sylvia Jablonski said in a statement that JEPY is “offering investors a new paradigm for income generation.”
“JEPY has the potential to reshape S&P 500 options income strategies within the ETF landscape,” she added.
The launch of JEPY follows Defiance ETFs’ listing in June of the Defiance Pure Electric Vehicle ETF (EVXX), which targets pure exposure to electric vehicle manufacturers.
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