Direxion Launches Single-Stock Covered Call ETFs on Nvidia, Tesla, and Other Tech Giants

Direxion, an asset manager known for its leveraged and inverse funds, has launched a new suite of exchange-traded funds (ETFs) that generate income through options strategies on individual stocks. The six new funds employ a covered call strategy on some of the market's most volatile technology and growth companies.

New ETF Suite Details

The new product line, named the Defined Income Boost lineup, provides exposure to six specific companies. The funds are unleveraged and seek to generate income by writing, or selling, call options against their holdings of the underlying stock.

This strategy earns premiums for the fund, providing a potential income stream. The initial ETFs in the suite are tied to:

• Nvidia (NVDA)
• Tesla (TSLA)
• Alphabet (GOOGL)
• Meta Platforms (META)
• Palantir Technologies (PLTR)
• Micron Technology (MU)

Strategy and Market Implications

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Direxion stated the ETFs are aimed at investors seeking income from high-growth companies that typically pay low or no dividends. The covered call approach allows investors to potentially earn income from option premiums while maintaining exposure to the underlying stock, though this strategy typically caps the potential for upside price appreciation.

According to Direxion Chief Product Officer Mo Sparks, the new funds extend the firm's derivatives expertise into income-focused products. The company also indicated it expects to expand the lineup over time. This launch reflects a growing investor appetite for options-based income strategies, particularly those focused on single, high-profile equities.

Context and Background

This product launch marks a significant expansion for Direxion beyond its traditional focus on leveraged and inverse ETFs. The firm managed approximately $85.4 billion in assets as of June 30, 2026, according to the announcement.

The new funds are based on rules-driven indexes published by Cboe. Direxion noted that while the ETFs are designed for investors seeking a non-leveraged, options-based income strategy, there is no guarantee the funds will achieve their stated investment objectives.