GraniteShares YieldBoost HIMS ETF (HMYY)

The GraniteShares YieldBoost HIMS ETF (HMYY) is an exchange-traded fund that holds shares of Hims & Hers Health, a direct-to-consumer telehealth company, and overlays a systematic covered call strategy to distribute cash income each month. Because Hims & Hers does not pay a dividend, HMYY creates one synthetically by selling call options against its HIMS position, collecting option premiums and passing them to shareholders as monthly distributions.

“Monthly income in exchange for capping your upside at a predetermined strike: the covering premise of every call-based yield strategy.”

Why covered calls and why Hims & Hers

Hims & Hers operates a telehealth platform offering prescription delivery, psychiatric consultations, and wellness services by video appointment and direct-to-home shipment. The company has grown rapidly and profitably but, as a policy, returns no capital to shareholders through dividends. For income-seeking investors, a non-dividend stock is a missed opportunity. HMYY bridges that gap through financial engineering: it purchases HIMS shares and then sells monthly call options against the position. Those calls give someone else the right to buy the shares at a set strike price; the buyer pays a premium; that premium becomes a monthly distribution to HMYY shareholders.

The tradeoff is mechanical and explicit. If HIMS closes the month below the strike, the calls expire worthless, the fund collects the premium, and repeats the strategy next month. If HIMS rallies above the strike, the calls are exercised and the shares are sold (called away) at that price. The fund then restarts the strategy with fresh capital and reinvested distributions, but the HIMS position is capped at the strike price for that month. An investor has sacrificed the potential to profit from further appreciation in exchange for monthly cash income received upfront.

Concentration and underlying business risk

HMYY holds only HIMS stock, creating no diversification. The fund’s equity exposure rests entirely on one company operating in one sector — telehealth — subject to one regulatory environment and one competitive landscape. Hims & Hers has grown by capturing a substantial share of the US direct-to-consumer telehealth market, but pressures are real: state pharmacy regulations change, competitors expand, and insurance coverage remains inconsistent. A major setback to the company’s growth or profitability flows directly to both the stock price and the fund’s ability to generate distributions. There is no portfolio insulation or sector diversification to mitigate company-specific shocks.

This concentration is the price of accessing a non-dividend stock in a simple, single-ticker vehicle. An investor uncomfortable with full exposure to HIMS should not hold HMYY regardless of the income yield.

How monthly distributions work in practice

Each month, the fund sells call options at a chosen strike — typically set to provide an attractive premium while leaving room for modest upside. The strike selection methodology is disclosed in the fund’s documentation and may be adjusted for market conditions. Option premiums reflect the stock’s implied volatility: in periods of elevated volatility, premiums widen and distributions swell; in placid, rising markets, premiums narrow and distributions shrink. An investor who holds HMYY during a multi-month period of calm sideways trading can accumulate meaningful income; one who holds through a sharp bull run captures only the distributions received up to the strike, then forgoes the remaining gains.

The management fee is modest — typically around 0.50% to 0.75% annually — but the real cost is opportunity cost: the cap on upside appreciation, not the stated percentage. Over time, if HIMS rallies sharply and consistently, the fund will underperform holding HIMS outright; if HIMS trades sideways or declines modestly, the accumulated distributions may outperform.

Trading, liquidity, and research

HMYY trades on NASDAQ during market hours at prices set by intraday supply and demand. Liquidity is moderate: small positions move easily, but large trades may incur slippage. The bid-ask spread is usually narrow for an equity ETF of this type.

Someone evaluating HMYY must read the fund’s prospectus to understand the exact call-selection methodology, strike-setting process, and how early assignment (if it occurs) is handled. Equally important is a thorough review of Hims & Hers’ recent quarterly reports and SEC filings to assess the underlying business health, competitive position, and growth trajectory. The fund’s distributions are not passive income from a growing company; they are compensation for capping your return. This distinction determines whether the fund is a strategic fit. An investor bullish on HIMS long-term and willing to cap appreciation for monthly cash would benefit from HMYY; one expecting strong HIMS appreciation would be better served holding HIMS shares directly.

The volatility decay question

Option premiums are highest when implied volatility is elevated — meaning in periods of stock price uncertainty or broader market stress. This creates a subtle dynamic: HMYY’s distributions are richest when the underlying stock is volatile and risky, yet the covered call strategy is most likely to result in assignment (shares called away at the strike) when the stock rises sharply. An investor relying on HMYY for steady income needs to accept that the income flow depends on continued sale of calls month after month, and that continued assignment and reinvestment will occur as part of normal operation. The strategy is not a perpetual income machine; it is a monthly cycle of selling and (possibly) being assigned, then restarting.