Covered calls on Magnificent Seven ETF offer high income with lower capital than individual stocks.

The Magnificent Seven stocks are popular for covered call strategies due to their liquidity and volatility, but high share prices require significant capital. The Roundhill Magnificent Seven ETF (MAGS) offers a lower-cost alternative with liquid options, allowing investors to sell covered calls with about $6,500 capital per contract. For example, a July 2026 call option at a $67 strike price could yield about 1.92% monthly income. For those preferring a hands-off approach, the Roundhill Magnificent Seven Covered Call ETF (MAGY) actively sells covered calls on MAGS shares, offering a high distribution rate of around 25.7% annually but with a higher expense ratio of 0.99%. This strategy provides income but limits upside gains.