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Earn Yield from Two Oversold Stocks
Markets have a habit of punishing good companies for short periods—sometimes for legitimate reasons, sometimes simply because sentiment turns negative. For investors, those dislocations can create opportunity, particularly when a stock becomes oversold and starts to stabilize.
But there's a second layer to that opportunity that many investors overlook: you may be able to stay linked to a potential rebound while collecting income along the way—by using options-based income ETFs.
These funds are not traditional dividend ETFs. They typically generate cash flow by selling call options (a covered-call style approach) tied to a specific underlying stock or exposure. The tradeoff is straightforward:
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You may receive regular distributions funded primarily by option premium, not operating-company dividends.
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You often cap some upside if the underlying stock rallies sharply (because calls sold can limit participation above certain levels).
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You take on unique risks, including high fees, potential distribution variability, and the possibility that distributions include return of capital (ROC), which can reduce NAV over time.
With that framing, here are two setups that combine "oversold opportunity" with an income-first structure.
Investing Ideas Daily
Trading the Oil Supply Shock
Oil markets are adjusting — not because of speculation, but because supply flexibility is shrinking.
Venezuela's disruption is removing key barrels from the system at a time when spare capacity is already limited. Markets are beginning to reflect that shift through price behavior, volatility, and sector rotation.
We've put together a concise trading briefing that breaks it down:
Trading the Oil Supply Shock: Top 3 Energy Stocks Emerging From Venezuela's Disruption
In this report, you'll see:
• How supply pressure is showing up before headlines catch up
• Three energy stocks traders are watching closely
• What signals to monitor as the setup evolves
Click here to request the free report
This is about preparation, not prediction.
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ETF: YieldMax RDDT Option Income Strategy ETF (SYM: RDYY)
If you want yield exposure to a high-growth platform stock without owning the stock directly, YieldMax RDDT Option Income Strategy ETF (SYM: RDYY) is designed to do exactly that.
As of January 23, RDYY was trading around $34.
How RDYY works (in plain English)
RDYY seeks current income while maintaining exposure to Reddit's share price, primarily by employing an option-income strategy tied to Reddit (RDDT). YieldMax discloses a gross expense ratio of 0.99%, a 30-day SEC yield of 2.23%, and a distribution rate of 58.15% (based on the fund's most recently declared distribution annualized).
Importantly, YieldMax also discloses distribution composition. For the most recent distribution declared on 01/21/2026, the fund reported 86.91% return of capital and 13.09% income.
That does not automatically mean something is "wrong," but it does mean investors should understand that the cash paid out may not be sourced from traditional "net investment income." ROC can have tax implications and can contribute to NAV erosion if it persists.
Why the underlying (Reddit) matters here
Reddit has become a focal point for two major narratives:
A) Fundamental momentum and operating leverage.
In its Q3 2025 results, Reddit reported revenue of $585 million (+68% YoY), DAUq of 116.0 million (+19% YoY), diluted EPS of $0.80, and free cash flow of $183 million.
Those are not "mature utility" metrics—they're platform-growth numbers, and they help explain why investor attention returns quickly when the stock stabilizes after a drawdown.
B) The AI distribution and citation dynamic.
A growing argument on Wall Street is that as search interfaces shift toward AI-generated answers, the value accrues to the sources that those answers cite and reference. Some analysts have highlighted Reddit as a disproportionate beneficiary of that citation behavior in AI-driven search experiences.
As of January 23, Reddit (RDDT) was trading around $219.78.
Recent weekly payouts (what investors actually see)
YieldMax's website shows recent RDYY distributions paid weekly, including:
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$0.4737 payable 01/09/2026
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$0.6558 payable 01/16/2026
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$0.3929 payable 01/23/2026
Weekly distributions can be attractive for cash-flow planning, but they can also fluctuate materially from week to week.
Crypto 101
Something unusual is happening in crypto…
Top hedge fund managers are seeing 3 forces collide:
• Institutional money flooding in via new ETFs
• Regulatory roadblocks finally falling
• Technical signals not seen since the last wealth cycle
Here's the twist 👉 They believe individual investors have the edge right now.
Big money moves slow.
You can move first.
I put everything I learned into one simple plan.
Discover the Crypto Retirement Blueprint and position yourself before the institutional wave hits.
ETF: YieldMax DKNG Option Income Strategy ETF (SYM: DRAY)
If you prefer a consumer/event-driven catalyst profile—where demand surges around key sports calendars—DraftKings is often in the conversation. For investors who want that exposure with an income overlay, YieldMax DKNG Option Income Strategy ETF (SYM: DRAY) offers a similar structure to RDYY.
As of January 23, DRAY was trading around $26.67.
How DRAY works
YieldMax reports DRAY's gross expense ratio at 0.99%, its 30-day SEC yield at 2.20%, and a distribution rate of 47.19% (again, based on annualizing the most recent distribution).
On distribution composition, YieldMax indicates that the most recent distribution declared on 01/21/2026 contained 52.16% return of capital and 47.84% income.
Same takeaway: attractive cash flow potential, but investors should understand what's driving it.
Why DraftKings matters here: event catalysts and analyst support
Sports betting has become one of the most "calendar-sensitive" themes in markets, with heightened engagement around marquee events.
To quantify the scale: AGA survey estimates for total Super Bowl wagering (including casual wagering and broader activity, depending on the year's methodology) rose sharply in recent cycles—$7.61B (Super Bowl LVI), $16B (LVII), and $23.1B (LVIII).
Separately, the AGA has also published legal-only Super Bowl wagering estimates in more recent reporting (a different methodology), underscoring how large the regulated market has become even before considering informal/casual activity.
For March Madness, the AGA estimated $3.1B would be wagered nationally in 2025.
On the Street, DraftKings has also seen supportive research. Needham reiterated a Buy rating with a $52 price target (as reported by Investing.com).
Wells Fargo also upgraded DraftKings to Overweight with a $49 price target (as summarized by The Fly / Yahoo Finance).
As of January 23, DraftKings (DKNG) was trading around $30.29.
Recent weekly payouts
YieldMax's website lists recent DRAY distributions paid weekly, including:
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$0.2900 payable 01/09/2026
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$0.1772 payable 01/16/2026
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$0.2576 payable 01/23/2026
Huge Alerts
ATCX Makes its NASDAQ Debut as Critical Minerals Become a National Priority!
Just Listed on Nasdaq: Atlas Critical Minerals (NASDAQ: ATCX) Aligns with U.S. Defense, Clean Energy, and the Urgent Break Away from China's Mineral Monopoly!
From fighter jets and submarines to EVs and renewable energy grids, critical minerals are the hidden backbone of modern power—and China's dominance has become a strategic liability. With export controls tightening and geopolitical tensions rising, the U.S. government has made critical minerals a national security priority.
President Trump's administration is backing that stance with real action, including massive Pentagon investments and long-term price guarantees that are reshaping the economics of the entire sector. In a market scrambling for credible alternatives to China's control of critical minerals.
Atlas Critical Minerals (NASDAQ: ATCX) distinguishes itself with a massive Brazilian asset base, advanced rare earth projects, and direct alignment with shifting U.S. policy priorities.
Atlas Critical Minerals (NASDAQ: ATCX), now trading on the Nasdaq, is emerging as a compelling beneficiary of this shift. With Brazil-based assets covering rare earths, titanium, graphite, uranium, and iron ore, ATCX offers diversification, scale, and geopolitical neutrality at a time when markets are rewarding credible alternatives to China.
Early revenue from iron ore production, advanced exploration results, and an experienced leadership team give Atlas momentum as demand accelerates across defense, clean energy, and advanced manufacturing.
Discover why ATCX is becoming a serious contender in the global race for critical minerals
Are there any other oversold stocks that you're watching right now? What other sectors of the market are you currently interested in? Hit "reply" to this email and let us know your thoughts!
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