Covered Call ETF Calculator
Estimate weekly income from covered call and option-income ETFs.
What covered call ETFs actually do
Most weekly-paying ETFs are variations on a single idea: hold exposure to something — a stock, an index, a basket — and sell call options against that exposure. The option premium is the income source. When the underlying moves sideways or drifts up modestly, the fund keeps the premium and the underlying, and the distribution flows through to shareholders. When the underlying rallies past the strike, the fund's upside is capped and it either delivers the underlying at the strike or rolls the option, often at a loss to the NAV.
That trade-off is the core reason distributions can be high but NAV can drift lower over time. Option premium is real cash, but it is compensation for giving up asymmetric upside. In a strong bull run for the underlying, a covered call ETF will earn income and still see its total return trail the underlying's price appreciation.
Consistency depends on volatility. Implied volatility is what buyers of options pay for the possibility that the underlying moves a lot. In quiet regimes, premium compresses and distributions shrink. In turbulent regimes, premium expands and distributions grow — but so does the risk that the underlying moves against the position. Funds that write shorter-dated options (weekly, zero-day) capture more turnover but also more variance in the payout.
For income planning, treat the yield figure printed here as a snapshot of current conditions, not a forward guarantee. Compare funds not only by headline yield but by trailing pattern, total return net of price change and expense ratio. The methodology page shows how each is computed on this site.
Frequently asked questions
A covered call ETF holds an underlying position (a stock, ETF or basket) and sells call options against it. The option premium is distributed as income; the trade-off is capped upside if the underlying rallies past the strike price.
Selling short-dated weekly options generates income every week, which the fund passes through as a weekly distribution. Some funds hold multiple option maturities and smooth the payout across the month.
Distributions come from option premium plus any underlying dividends minus expenses. In quiet markets premium shrinks; in volatile markets it grows. Consistency depends on the fund's strategy and the option regime — it is not guaranteed.
The income section reflects the current run rate. To model NAV erosion or growth under DRIP, use the DRIP calculator, which lets you enter an annual price change assumption.
What it is
A weekly income estimator for the covered call and option-income ETFs that make up most of the weekly-paying universe. Pick a fund, enter an amount or share count, and see the run-rate income implied by the most recent distribution.
Who it's for
Investors evaluating covered call strategies — including YieldMax, Roundhill WeeklyPay, GraniteShares YieldBOOST and Defiance's income series.
When to use it
Use it when comparing covered call funds head-to-head, or when a fund's most recent distribution resets your expected income.