DayMAX™ ETFs: Seize the Day

The world of options trading has seen a meteoric rise in a new, fast-paced instrument: the Zero-Day-to-Expiration (0DTE) option. These options contracts, which expire the same day they are traded, now account for a significant portion of daily options volume. Since their emergence in 2022, 0DTE options have seen their trading volume grow more than fivefold, with over $1 trillion in notional value trading hands each day[1] — underscoring both their rapid adoption and deep liquidity.

Hamilton ETFs is proud to introduce Canada’s first suite of ETFs employing daily options. The DayMAX™ ETFs are designed to deliver higher and more frequent tax-efficient income through the use of 0DTE options and modest 25% leverage, offering a compelling complement to more traditional covered call strategies. The DayMAX™ suite includes:

• Hamilton Enhanced Canadian Equity DayMAX™ ETF (CDAY)
• Hamilton Enhanced U.S. Equity DayMAX™ ETF (SDAY)
• Hamilton Enhanced Technology DayMAX™ ETF (QDAY)

What are 0DTE Options?

0DTE options refer to options contracts that expire at the close of the same trading day they are traded.

The defining characteristic of 0DTE options is their ability to support income generation every single trading day by monetizing intraday volatility. While the premium on an individual 0DTE option is typically lower than that of a one-month option, the key difference lies in the trading frequency: monthly options can only be written 12 times per year, while 0DTE options can be written ~250 times annually.

We believe DayMAX™ ETFs are a powerful complement to longer-duration covered call strategies such as our YIELD MAXIMIZER™ ETFs. By combining daily and longer-duration covered call strategies, income investors can diversify across time horizons, helping to smooth cash flows and tap into a wider range of income opportunities. In essence, DayMAX™ adds another tool to your income toolkit, enhancing flexibility and supporting more frequent income generation.

DayMAX™ ETFs — Explore the Lineup

To harness the benefits of this popular and emerging options strategy, we launched the DayMAX™ ETFs, Canada’s first suite of daily covered call option ETFs. Designed to generate higher and more frequent tax-efficient income, these ETFs write daily call options while applying modest 25% leverage to diversified equity portfolios.

• The Hamilton Enhanced Canadian Equity DayMAX™ ETF (CDAY) invests in the HAMILTON CHAMPIONS™ Canadian Dividend Index ETF (CMVP) and typically writes options on the S&P 500 index to enable the use of 0DTE options, which are currently only available on select U.S. indices.
• The Hamilton Enhanced U.S. Equity DayMAX™ ETF (SDAY) invests in the HAMILTON CHAMPIONS™ U.S. Dividend Index ETF (SMVP) and writes options on the S&P 500 index.
• The Hamilton Enhanced Technology DayMAX™ ETF (QDAY) invests in the Technology Select Sector SPDR® Fund (XLK.US) and writes options on the Nasdaq 100 index.

* Since daily options are currently only available on select U.S. indices, CDAY will write options on the S&P 500 index to carry out its daily options strategy.
** Target Coverage refers to the average portion of the portfolio covered by written options and is actively adjusted based on market volatility to balance income and growth.

DayMAX™ ETFs — Key Benefits

• Daily Premium Collection: DayMAX™ ETFs write call options every trading day, creating ~250 opportunities per year to generate income.
• Enhanced Yield and Growth Potential: DayMAX™ ETFs employ modest 25% leverage to increase market exposure and amplify the tax-efficient income generated by the strategy — enhancing the overall yield and growth potential. While leverage can increase portfolio volatility, its impact is moderated by the conservative level used and the blue-chip nature of the underlying holdings.
• Responding to Volatility with Flexible Coverage: By writing a new option position daily, the strategy can respond dynamically to changing volatility conditions — capturing richer premiums in high-volatility environments and adjusting in calmer markets. The coverage ratio is actively managed and can be increased or decreased depending on market volatility to help balance income generation and growth. On average, the DayMAX™ ETFs will typically target ~20% coverage, allowing the remaining 80% to stay fully exposed to upside growth potential.
• Exposure to Overnight Returns: By writing options that expire at the end of each trading day, DayMAX™ ETFs maintain full exposure to overnight market movements. Historically, a meaningful portion of equity returns has occurred during these periods, making overnight exposure a valuable contributor to long-term performance[2].
• Experienced Team (50+ years’ experience): Led by Chief Options Strategist, Nick Piquard, our options team has 50+ years of combined experience, which is crucial for efficiently managing the complexities of a daily options strategy.

Why DayMAX™ ETFs?

The rapid growth of daily options trading has created a compelling new opportunity for income-focused investors. DayMAX™ ETFs provide targeted exposure to this emerging segment, complementing traditional covered call strategies by offering the potential for higher yields, more frequent distributions, and providing diversification of income sources.

For additional information on our suite of HAMILTON CHAMPIONS™ ETFs, please CLICK HERE.

For additional information on our suite of YIELD MAXIMIZER™ ETFs, please CLICK HERE.

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A word on trading liquidity for ETFs …

Hamilton ETFs are highly liquid ETFs that can be purchased and sold easily. ETFs are as liquid as their underlying holdings and the underlying holdings trade millions of shares each day.

How does that work? When ETF investors are buying (or selling) in the market, they may transact with another ETF investor or a market maker for the ETF. At all times, even if daily volume appears low, there is a market maker – typically a large bank-owned investment dealer – willing to fill the other side of the ETF order (at net asset value plus a spread). The market maker then subscribes to create or redeem units in the ETF from the ETF manager (e.g., Hamilton ETFs), who purchases or sells the underlying holdings for the ETF.

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Commissions, management fees and expenses all may be associated with investments in exchange traded funds (ETFs) managed by Hamilton ETFs. Please read the prospectus before investing. Indicated rates of return are the historical annual compounded total returns including changes in per unit value and reinvestment of all dividends or distributions and does not take into account sales, redemptions, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Only the returns for periods of one year or greater are annualized returns. ETFs are not guaranteed, their values change frequently and past performance may not be repeated.

Certain statements contained in this website may constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “anticipate”, “believe”, “intend” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Hamilton ETFs undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.

[1] Source: Cboe (https://www.cboe.com/insights/posts/0-dt-es-decoded-positioning-trends-and-market-impact/)
[2] Source: Boyarchenko, N., Larsen, L. C., & Whelan, P. (2020, revised 2022). The Overnight Drift (Federal Reserve Bank of New York Staff Report No. 917). https://www.newyorkfed.org/research/staff_reports/sr917.html