Following a 34% decline in net asset value since launch, the YieldMax HOOD Option Income Strategy ETF (HOOY) was upgraded to a Buy rating by analyst Parkev Tatevosian, who highlights its 54.5% annualized dividend yield as of January. The ETF employs a synthetic covered-call strategy on Robinhood Markets shares, writing monthly calls at a 3% to 5% out-of-the-money strike relative to spot HOOD price. While this strategy caps upside participation in rallies above the strike, it generates monthly time decay income. Tatevosian’s back-tested simulations show that HOOY would beat a long-only HOOD position by 120 basis points in flat markets over rolling six-month periods, but would underperform by as much as 600 basis points in sustained bear trends. Consequently, he advises tactical entry when HOOD volatility is moderate and directional momentum is neutral or slightly positive.

According to Bloomberg News, U.S. officials are in discussions to designate Robinhood Markets as the platform operator for a new federal program creating custodial accounts—dubbed “Trump accounts”—for an estimated 20 million children of low-income families. Under the proposal, Robinhood would oversee account administration, transaction monitoring and compliance reporting, leveraging its retail trading infrastructure to facilitate monthly automatic deposits of up to $50 per child. Sources indicate that the Treasury Department is evaluating Robinhood’s zero-commission model and its regulatory readiness following its recent Series G funding round, which valued the company at $35 billion. Officials aim to have the program operational by Q3, pending completion of a competitive bidding process and a formal onboarding of Robinhood’s compliance systems.