Is AMZY a Buy? What to Consider in 2026

The YieldMax AMZN Option Income Strategy ETF (AMZY) is an actively managed, single-stock option-income fund issued under the YieldMax brand and run on the Tidal Trust II platform. It aims to produce high monthly income from Amazon (AMZN) by holding synthetic long exposure to the stock (through options) and systematically writing call options against that exposure. The premiums collected from selling calls fund the distributions. This is a covered-call style income strategy, not a leveraged fund: it does not aim to multiply Amazon's daily return. The trade-off is structural. Selling calls caps how much AMZY can gain when Amazon rallies, while the fund still participates in most of the downside when Amazon falls. Over time this asymmetry, combined with paying out option premium each month, tends to erode the fund's net asset value and share price. Since inception in October 2023, AMZY's total return (with distributions reinvested) has trailed simply holding Amazon stock, and its share price has fallen meaningfully even as it paid large distributions. The fund carries an expense ratio of about 1.01% and pays monthly. Investors should understand that the eye-catching distribution rate is annualized from monthly payouts off a declining NAV and frequently includes a large return-of-capital component, which is effectively giving investors back their own money rather than generating new income.

Largest holdings (approximate as of early 2026; verify on YieldMax (Tidal Investments / Tidal Trust II)'s fund page):

AMZY is a YieldMax option-income ETF that sells call options on Amazon (AMZN) to pay very large monthly distributions, recently running around 30% to 38% annualized. It is not leverage. The high payout comes at a cost: it caps Amazon's upside, tends to erode the fund's NAV over time, and a large share of recent distributions has been return of capital rather than actual income.

In its favour: it gives you synthetic covered-call income on Amazon (AMZN) exposure in one ticker at a 1.01% expense ratio, which is simple to hold and cheap to own.

• Cost vs alternatives: 1.01% is the fee; compare it to funds tracking a similar index.
• Concentration: check how much of AMZY sits in its largest holdings (AMZN).
• Overlap: if you already own a broad-market fund, you may already hold much of this.
• Tracking scope: AMZY only gives you synthetic covered-call income on Amazon (AMZN); it will not capture what sits outside that index.

The useful question is rarely “will AMZY go up?” It is “does this exposure fit my plan, at a cost I am happy with, without doubling up on what I already own?” Walnut connects your real brokerage so you can see exactly how AMZY would overlap with your current holdings, analyze it by chatting through Claude or ChatGPT, and place any trade yourself. You stay in control.

The bottom line: AMZY is a low-cost core building block for synthetic covered-call income on Amazon (AMZN) exposure, not a tactical bet on a single name. If you want synthetic covered-call income on Amazon (AMZN) exposure and the 1.01% fee is competitive for you, it does its job well. If you already own that exposure through another fund, adding it mostly doubles a fee without adding diversification. Decide from your goal and your existing holdings, not from where the market sat last week. Walnut is not an investment adviser.