Roundhill Russell 2000 0DTE Covered Call Strategy ETF (RDTE) Stock Price, Quote, News & History | Benzinga

The Fund seeks to achieve its investment objectives through the use of a synthetic covered call strategy that provides current income on a weekly basis, while also providing exposure to the price return of the Russell 2000 Index (the Small Cap Index). In effectuating its investment strategy, the Fund will purchase and sell a combination of call option contracts that utilize the Small Cap Index as the reference asset. The Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in financial instruments (such as options contracts) that utilize the Small Cap Index as the reference asset. For purposes of compliance with this investment policy, derivative contracts (i.e. options contracts) will be valued at their notional value. The Funds sold call options will generally have zero days to expiration, known as 0DTE options, when sold by the Fund. At market open, or shortly thereafter, on every business day, the Fund generally sells out-of-the-money 0DTE call options on the Small Cap Index that will expire at the end of the day. The Funds purchased call options will be struck deep-in-the-money and have a longer maturity when purchased, thereby offering synthetic long exposure to the Small Cap Index.