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Tuttle Capital Launches Options-Based ETF to Milk Income from Big Tech Volatility

MarketDash Editorial Team
3 hours ago
Tuttle Capital Management's new ETF uses a put-spread options strategy to generate income from the Magnificent 7's wild price swings while maintaining exposure to tech's biggest names.

Tuttle Capital Management is betting that investors would rather make money from Big Tech's mood swings than lose sleep over them. The firm just launched an ETF that treats the volatility of the Magnificent 7 as a feature, not a bug.

The Tuttle Capital Magnificent 7 Income Blast ETF (MAGO) began trading on CBOE Tuesday, offering a fresh take on how to invest in Alphabet Inc. (GOOGL), Amazon.com, Inc (AMZN), Apple, Inc (AAPL), Meta Platforms (META), Microsoft Corp (MSFT), Nvidia Corp (NVDA), and Tesla, Inc (TSLA). The twist? It combines direct stock exposure with an options-driven income strategy.

While most Magnificent 7 funds chase pure growth, MAGO takes a different path. It's actively managed and designed to deliver current income on top of equity-like exposure to the mega-cap tech stocks that have driven market returns lately. Think of it as collecting rent while still owning the property.

How the Options Machine Works

MAGO pairs direct positions in the Magnificent 7 with a systematic put-spread strategy using both listed options and FLEX Options. The goal is to capture profits from these stocks' typically high volatility while maintaining economic exposure that tracks the price return of the underlying basket, minus fees and expenses.

Here's the mechanics: the fund generates income by selling put options on the Magnificent 7 stocks, then buying additional puts that are further out-of-the-money on those same stocks. This put-spread setup is built to collect option premium while capping downside risk on the options piece of the portfolio. You're essentially getting paid to take on defined risk.

Making Volatility Pay

The Magnificent 7 have become the backbone of index performance and the stars of every innovation narrative. They're also among the most volatile large-cap stocks you can buy. MAGO's entire premise rests on the idea that this volatility can be harvested for profit through strategic options positioning, rather than just endured.

The fund intends to regularly rebalance and roll its put spreads, re-establishing new positions as existing options expire or get closed out. This rules-based approach aims to keep the strategy aligned with current market conditions and income targets, though actual results will fluctuate based on whatever the market decides to do that week.

For investors who think Big Tech's reign isn't ending anytime soon but who also want to collect some income along the way, MAGO presents a more yield-oriented approach to riding the Magnificent 7 wave. Whether it actually delivers that "income blast" or just a modest bump will depend on how wild these stocks decide to get. And if there's one thing the Magnificent 7 are known for, it's not being boring.

Back to Stock Market News

Tuttle Capital Launches Options-Based ETF to Milk Income from Big Tech Volatility

MarketDash Editorial Team
3 hours ago
Tuttle Capital Management's new ETF uses a put-spread options strategy to generate income from the Magnificent 7's wild price swings while maintaining exposure to tech's biggest names.

Tuttle Capital Management is betting that investors would rather make money from Big Tech's mood swings than lose sleep over them. The firm just launched an ETF that treats the volatility of the Magnificent 7 as a feature, not a bug.

The Tuttle Capital Magnificent 7 Income Blast ETF (MAGO) began trading on CBOE Tuesday, offering a fresh take on how to invest in Alphabet Inc. (GOOGL), Amazon.com, Inc (AMZN), Apple, Inc (AAPL), Meta Platforms (META), Microsoft Corp (MSFT), Nvidia Corp (NVDA), and Tesla, Inc (TSLA). The twist? It combines direct stock exposure with an options-driven income strategy.

While most Magnificent 7 funds chase pure growth, MAGO takes a different path. It's actively managed and designed to deliver current income on top of equity-like exposure to the mega-cap tech stocks that have driven market returns lately. Think of it as collecting rent while still owning the property.

How the Options Machine Works

MAGO pairs direct positions in the Magnificent 7 with a systematic put-spread strategy using both listed options and FLEX Options. The goal is to capture profits from these stocks' typically high volatility while maintaining economic exposure that tracks the price return of the underlying basket, minus fees and expenses.

Here's the mechanics: the fund generates income by selling put options on the Magnificent 7 stocks, then buying additional puts that are further out-of-the-money on those same stocks. This put-spread setup is built to collect option premium while capping downside risk on the options piece of the portfolio. You're essentially getting paid to take on defined risk.

Making Volatility Pay

The Magnificent 7 have become the backbone of index performance and the stars of every innovation narrative. They're also among the most volatile large-cap stocks you can buy. MAGO's entire premise rests on the idea that this volatility can be harvested for profit through strategic options positioning, rather than just endured.

The fund intends to regularly rebalance and roll its put spreads, re-establishing new positions as existing options expire or get closed out. This rules-based approach aims to keep the strategy aligned with current market conditions and income targets, though actual results will fluctuate based on whatever the market decides to do that week.

For investors who think Big Tech's reign isn't ending anytime soon but who also want to collect some income along the way, MAGO presents a more yield-oriented approach to riding the Magnificent 7 wave. Whether it actually delivers that "income blast" or just a modest bump will depend on how wild these stocks decide to get. And if there's one thing the Magnificent 7 are known for, it's not being boring.