3 Option-Income ETFs to Buy Now for Monthly Cash Flow in 2026
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Three option-income ETFs offer different approaches to generating monthly cash flow, with varying tradeoffs between income predictability and upside potential. These ETFs use covered call strategies to produce income from volatility.
Option-income ETFs generate regular cash distributions by selling call options against their equity holdings. Three popular funds illustrate different approaches: JEPQ, a mega-cap tech covered call strategy; CONY, a single-stock crypto bet on Coinbase; and a multi-name high-volatility portfolio. JEPQ holds $34.3 billion in net assets and pairs a Nasdaq-100 equity portfolio with a systematic options overlay, yielding around 11%. CONY, with $393 million in net assets, uses a synthetic covered call strategy on Coinbase, offering a 74% annualized distribution rate but with variable weekly payouts. These funds trade off upside potential for income generation, with JEPQ limiting participation in sharp Nasdaq rallies and CONY's distributions dependent on Coinbase's implied volatility. Investors can choose between these funds based on their income needs and risk tolerance.
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