HOOY: Upgrading To Buy, The Spread Structure Retains More Upside Than I Thought

The YieldMax HOOD Option Income Strategy ETF is now rated Buy, supported by a year of data showing strong upside capture with moderate income. HOOY’s laddered spread mechanism enables participation in flat or grinding-up markets, with limited but reasonable drawdown cushions and thinner income than aggressive covered call strategies. A bullish long-term thesis on HOOD is essential for HOOY investors, as the ETF’s NAV-erosive high distributions and path dependency require understanding of its mechanics. Valuation headwinds for HOOD and sector-specific risks exist, but HOOY’s structure is well-suited for flat-to-moderately bullish scenarios, with exit signaled by sustained drawdowns.

Almost a year ago, I had reviewed the newly launched YieldMax HOOD Option Income Strategy ETF ( HOOY ) and rated it a Hold . One of the reasons to not chase the ETF at This article was written by The Alpha Analyst 4.66K Followers Follow I am a stock analyst with over 20 years of experience in quantitative research, financial modeling, and risk management. My focus is on equity valuation, market trends, and portfolio optimization to uncover high-growth investment opportunities. As a former Vice President at Barclays, I led teams in model validation, stress testing, and regulatory finance, developing a deep expertise in both fundamental and technical analysis. Alongside my research partner (also my wife), I co-author investment research, combining our complementary strengths to deliver high-quality, data-driven insights. Our approach blends rigorous risk management with a long-term perspective on value creation. We have a particular interest in macroeconomic trends, corporate earnings, and financial statement analysis, aiming to provide actionable ideas for investors seeking to outperform the market.