AMZY Caps Amazon’s Upside While Capturing Every Drop, And the Math Is Brutal

The article analyzes YieldMax AMZN Option Income Strategy ETF (AMZY) and shows the ETF has materially underperformed Amazon stock by design: since AMZY’s October 2023 inception, Amazon gained ~107% while AMZY’s distribution-adjusted total return was ~83%, meaning AMZY captures roughly 75% of Amazon’s upside. AMZY achieves monthly income by selling short-dated calls on a synthetic AMZN position, which limits upside, creates ordinary-income tax treatment, and risks NAV erosion and single-name concentration. Q1 2026 results (AMZN EPS $2.78 vs $1.73 consensus; AWS +28% Y/Y at ~38% margin) illustrate months when AMZY’s sold strikes capped gains—AMZN returned ~26% over the trailing year while AMZY captured ~19%. The piece recommends AMZY only as a small, tactical sleeve for income-focused investors (ideally in tax-advantaged accounts) and suggests diversified alternatives for income with AMZN exposure.