Tidal Trust II Defiance Oil Enhanced Options Income ETF

Rather than track the oil price directly, USOY sells options against it to manufacture income. Each week the actively managed fund writes put options on USO, the largest oil-futures ETF, collecting premium in exchange for taking on downside exposure to crude. Defiance sponsors it, with Toroso as adviser and options specialist ZEGA sub-advising the strategy. The design pays out a high distribution, recently around a 40% annualized rate, delivered weekly, which is the entire appeal for income-hungry buyers. The economics match other option-income funds: premiums cap the upside if oil rallies, and a large majority of the payouts have been classified as return of capital, meaning the fund is often handing back investors' own money and eroding its NAV. It is a yield play on oil volatility, not a way to own oil for the long run. It launched in 2024.

On MyRWA, USOY trades tokenized across 1 on-chain venue - see the listings below.