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Latest Tidal ETF Trust SoFi Enhanced Yield ETF  News | ARCA:THTA | Benzinga

The Fund seeks to achieve its objective by combining a strategy of holding U.S. Treasury Bills and/or U.S. Treasury Bonds, with a 'credit spread' option strategy to seek to generate enhanced yield. For the Funds credit spread strategy, the Fund enters into credit put spreads or credit call spreads based on the ZEGA's return versus risk assessment with respect to the broad stock market and the options market. ZEGA manages the Fund using its High Probability Options Strategy (HiPOS or the Strategy), by which it seeks to provide risk-adjusted returns for the Fund that are uncorrelated to both equity and fixed income markets by using an alternative trading strategy, and reducing the need to predict future market movements.

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SoFi Enhanced Yield ETF

Jay Pestrichelli

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ZHDG

Options trading offers quick returns but is risky. ETFs and funds, like $THTA and $ZHDG, use options strategies for consistent returns and risk diversification.

Looking For Hands-Off Profits? Discover How Option-Based ETFs Can Work For You

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SOFI

SoFi Technologies, Inc. (NASDAQ: SOFI) shares are trading lower Thursday after the stock rose 7% in Wednesday&#39;s session.

What&#39;s Going On With SoFi Technologies Stock Today?

Tidal ETF Trust SoFi Enhanced Yield ETF

If you've been investing or trading for a while, you've probably heard of or dabbled with option trading. Many traders are drawn <a href="https://www.benzinga.com/markets/options">to option trading</a> because of the ability to make more money quickly compared to traditional stock trading. But, options are inherently more risky than buying common stock, and most retail investors lose money over time trading option contracts. But, there are other ways to make money through options rather than buying and trading them yourself.



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<iframe loading="lazy" title="#63 How To Maximize Return With ETF &amp; Options Strategies With Jay Pestrichelli" width="500" height="281" src="https://www.youtube.com/embed/9wy5jw9aZKY?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
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In today's market, there are a number of ETFs and funds that use option tactics to drive returns to investors. Jay Pestrichelli, the founder and managing director of ZEGA Financial, a firm that designs ETFs that employ options strategies to deliver returns to investors. ZEGA has even designed, built and manages an ETF for SoFi Technologies called the SoFi Enhanced Yield ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THTA#NYSE">THTA</a>). Pestrichelli joined Benzinga co-founder Jason Raznick on <a href="https://www.youtube.com/watch?v=9wy5jw9aZKY">&#8220;The Raz Report&#8221; podcast</a> to discuss $THTA and ZEGA's mission of using option strategies to both enhance returns, and balance risk for investors looking for a hands-off approach to their portfolios. "What it means is you can get direct exposure to an index, a theme, even active management," Pestrichelli said on the podcast. "We even put options in ETFs. You get a lot more diversification, there are also some tax benefits when it comes to ETFs." 



Pestrichelli described the $THTA ETF and its strategy: selling out-of-the-money options to deliver consistent returns, even during market downturns. SoFi says, "THTA provides a simple, liquid way to diversify one&#8217;s portfolio by introducing what is a fast-growing emerging asset class: options-powered income strategies." 



"The new fund will also take advantage of tax loss harvesting opportunities in addition to utilizing ZEGA options strategy," the company adds. ZEGA also manages an ETF called the Zega Buy And Hedge ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ZHDG#NYSE">ZHDG</a>) which provides investors with exposure to the U.S. large-cap market while mitigating downside risks in the event of a market downturn, such as the COVID-19 market crash.



Now Read: <a href="https://www.benzinga.com/economics/macro-economic-events/24/04/38206965/mild-producer-price-data-follows-consumer-price-shock-yet-economists-raise-doubts">Mild Producer Price Data Follows Consumer Price Shock, Yet Economists Raise Doubts On Rate Cuts: &#8216;Fed Pivot Is Quickly Disappearing&#8217;</a>



Photo: Benzinga/Zega Financial

SoFi Technologies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOFI#NASDAQ">SOFI</a>) shares are trading lower Thursday after the stock rose 7% in Wednesday&#39;s session. SOFI shares are down by <a href="https://www.benzinga.com/pressreleases/23/11/b35826894/sofi-invest-launches-the-sofi-enhanced-yield-etf-to-offer-investors-a-new-income-source">more than 17% over the last month. </a>

What To Know:

On Thursday, SoFi Technologies <a href="https://www.benzinga.com/pressreleases/23/11/b35826894/sofi-invest-launches-the-sofi-enhanced-yield-etf-to-offer-investors-a-new-income-source">announced the launch</a> of the SoFi Enhanced Yield ETF, THTA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/THTA#NYSE">THTA</a>). The fund will distribute monthly distributions via a portfolio of one to three month short-term Treasury Bills while also implementing a data-driven options overlay strategy which is actively managed by ZEGA Financial.

On Wednesday, Barclays analyst Terry Ma <a href="https://www.benzinga.com/quote/SOFI/analyst-ratings">initiated coverage</a> on SoFi Technologies with an Equal-Weight rating and announced a price target of $8.

SoFi shares are dropping on high volume Thursday with more than 29.3 million shares already traded in the session, compared to the stock&#39;s 100-day average of 29.668 million shares.

SoFi Technologies&#39; stock has attracted attention from short-sellers with 13.11% of available SOFI shares being sold short, according to data from <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw">Benzinga Pro</a>.

Related News: <a href="https://www.benzinga.com/news/23/11/35811148/plug-power-stock-re-charges-after-q3-earnings-disappointment-whats-going-on">Plug Power Stock Re-Charges After Q3 Earnings Disappointment: What&#39;s Going On?</a>

SOFI Price Action: According to<a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw"> </a>data from<a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw"> Benzinga Pro</a>, SoFi Technologies shares are down by 8% at $6.78 at the time of publication.

Image:&nbsp;Dirk Wouters from Pixabay

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