Single-stock covered call ETFs have become a hot investment category. Investors are drawn to yields of 50% to more than 100% on underlying stocks like Tesla, NVIDIA, Meta, Palantir, and Coinbase.

These ETFs pay great yields derived from selling call options. If you invest in one or more, you want the underlying stock to also appreciate. If one of these stocks or the stock market takes a tumble, the big yields may not make up for the share price declines.

Yieldmax ETFs have been the first mover and biggest player in single-stock, covered call ETFs. They currently have 25 single-stock ETFs.

However, stock prices don’t go up forever. Bear markets and corrections happen. If you look at the market’s history, a correction of at least 10% occurs, on average, every two years. It would be great to have some high-yield ETFs that profit when share prices are going down.

In recent months, Yieldmax released ETFs that will generate positive returns when the underlying stock or asset goes down. These ETFs offer a chance for nice gains and big dividends during a market downturn. Here are the currently available inverse option strategy ETFs.

·       YieldMax Short TSLA Option Income Strategy ETF (CRSH)
Current distribution yield: 69.64%

·       YieldMax Short COIN Option Income Strategy ETF (FIAT)
Current yield: 201.57%

·       YieldMax Short NVDA Option Income Strategy ETF (DIPS)
Current yield 60.20%

·       YieldMax Short N100 Option Income Strategy ETF (YQQQ)
Current yield: 25.80%

You might have noticed that the Yieldmax folks were pretty clever with the stock symbols.

The yields for the three single-stock inverse ETFs are massive. That means you will earn significant cash even if your timing for the next downturn is off. Or, you can use one or more as a hedge for the rest of your portfolio.