Amplify Insights

Explore Bitcoin with Options

Written by Amplify ETFs | May 12, 2025 2:58:41 PM

Designed to offer investors appreciation potential and the opportunity to harness Bitcoin’s price volatility for consistent income potential.

 

Bitcoin* covered call ETFs from Amplify ETFs seek to harness Bitcoin’s price volatility to generate regular, high monthly income, all while maintaining the potential for upside growth. These innovative strategies systematically write covered calls on Bitcoin ETPs* or related assets.

Transforming Volatility into an Income Opportunity

Bitcoin’s notable price movements present a unique advantage when paired with a covered call strategy. By leveraging volatility, investors can generate regular premium earnings while still retaining exposure to Bitcoin’s growth. Whether Bitcoin trends upward, downward, or remains range-bound, investors may benefit from resilient income, transforming volatility into opportunity.

The chart shows Bitcoin’s volatility relative to the S&P 500. A higher level of volatility typically results in a higher level of potential option premium received in a covered call strategy.

Past performance is no guarantee of future results. The S&P 500 index tracks the performance of the 500 leading U.S. companies. The Bloomberg Bitcoin Index is designed to measure the performance of a single bitcoin traded in USD. Volatility is the annualized standard deviation of the relative price change for the 10 most recent trading days closing price, expressed as a percentage. 

Bitcoin Price Exposure and Optimized Returns with Income Generation

Amplify’s Bitcoin covered call ETFs aim to offer dual advantages: exposure to Bitcoin’s price movements and income generation through option writing. Bitcoin continues to captivate the investment world with its dynamic growth potential and volatility. We believe this approach offers a balanced pathway to total returns that includes capital appreciation and high option premiums potential.

Diversification

Including Bitcoin in an income allocation may provide diversification benefits. As a non-traditional asset, its price movements can be less correlated with traditional income assets and those of stocks or bonds.

Built-in Risk Management

These covered call strategies inherently include a layer of protection against the downside risk through the premiums collected from sold call options, acting as a buffer against potential declines in Bitcoin’s value.

Access to Professionally Managed Strategies

Executing covered call options requires expertise, time, and precision. With BAGY and BITY, investors gain entry to professionally managed options strategies, streamlining the income generation potential without the complexities of direct management.

Bitcoin Income ETFs by Amplify

Amplify ETFs are at the forefront of deploying covered call strategies across a variety of asset classes and now BAGY and BITY offer investment approaches that are carefully designed to optimize income generation, minimize risks, and provide Bitcoin price exposure.

Discover more on how to help transform volatility into a strategic advantage.