If you’ve ever wished your portfolio could earn income more often than once a month, Hamilton ETFs might have just answered the call. With the launch of their new DayMAX™ ETF suite, Canadian investors now have access to a unique strategy that generates income from daily market activity—specifically, the fast-growing world of zero-day-to-expiration (0DTE) options.
So, what’s all the buzz about? Let’s break it down.
What Are 0DTE Options and Why Do They Matter?
In plain terms, 0DTE options are contracts that expire the same day you trade them. They’ve exploded in popularity since 2022 and now make up more than $1 trillion in daily trading volume, according to data from Cboe. Their appeal lies in their ability to generate short bursts of income from intraday market swings—no long-term commitment required.
Hamilton ETFs sees this as a major opportunity. Instead of writing options just once a month like traditional covered call ETFs, DayMAX™ ETFs can do it about 250 times a year. That’s a huge increase in income potential.
Meet the DayMAX™ Lineup
The DayMAX™ suite includes three ETFs:
- CDAY – Hamilton Enhanced Canadian Equity DayMAX™ ETF
- SDAY – Hamilton Enhanced U.S. Equity DayMAX™ ETF
- QDAY – Hamilton Enhanced Technology DayMAX™ ETF
All three follow a similar game plan:
- Write daily call options (mainly on U.S. indices)
- Apply 25% modest leverage to amplify income and growth potential
- Stay unhedged to the Canadian dollar
- Make semi-monthly distributions
This setup lets investors earn from daily option premiums while still capturing overnight market moves—a time when, surprisingly, a lot of equity returns tend to happen[1].
Why DayMAX™ ETFs Aren’t Just Another Covered Call Strategy
What makes DayMAX™ ETFs different isn’t just the frequency of the options—it’s the flexibility and responsiveness to market conditions. As the Hamilton team puts it:
“Monthly options can only be written 12 times per year, while 0DTE options can be written ~250 times annually.”
That’s a lot more chances to generate income, especially in choppy markets where premiums can spike. The funds adjust how much of the portfolio is covered daily—typically around 20%—to strike a balance between generating cash flow and keeping room for growth potential.
The rest of the portfolio (about 80%) remains fully invested, giving investors exposure to potential capital appreciation.
What’s Under the Hood?
Here’s how the DayMAX™ ETFs are built:
- CDAY holds the HAMILTON CHAMPIONS™ Canadian Dividend Index ETF (CMVP), but writes daily options on the S&P 500 (since 0DTEs aren’t yet available for Canadian indices).
- SDAY uses the HAMILTON CHAMPIONS™ U.S. Dividend Index ETF (SMVP.U) as its core holding and also writes on the S&P 500.
- QDAY tracks the Technology Select Sector SPDR® Fund (XLK) and writes options on the Nasdaq 100.
Even though the income side is tied to U.S. indices, the core holdings remain diversified, blue-chip equity portfolios. The modest 25% leverage is there to boost returns and income, but it’s handled cautiously:
“While leverage can increase portfolio volatility, its impact is moderated by the conservative level used and the blue-chip nature of the underlying holdings,” the team explains.
Designed to Work With, Not Replace, Existing Strategies
Hamilton ETFs makes it clear: DayMAX™ ETFs aren’t here to replace traditional covered call ETFs. It’s designed to sit alongside them, offering more frequent income and different durations.
“DayMAX™ ETFs add another tool to your income toolkit, enhancing flexibility and supporting more frequent opportunities for income generation,” the firm states.
This makes it a compelling option for advisors looking to diversify their clients’ income sources, especially during periods of higher market volatility.
A Fresh Approach With Built-In Discipline
Of course, no strategy is without risk. Daily options require experienced hands to manage, and Hamilton ETFs’ options team, led by Nick Piquard, brings over 50 years of combined expertise to the table.
Importantly, DayMAX™ ETFs keep full overnight market exposure—something the New York Fed has shown can significantly impact long-term returns1.
So, while the strategy is active and fast-moving, it’s not chasing trades. It’s structured, disciplined, and built with a clear purpose: making the most of daily market volatility to generate income.
Balancing Risks with Strategic Design
Let’s not sugarcoat it—just like any strategy that uses leverage and trades options daily, DayMAX™ ETFs come with a few moving parts that deserve your consideration. Here’s what to watch for—and how the strategy is designed to help manage those risks:
- Modest Leverage, Managed Exposure: While 25% leverage can amplify both gains and losses, it’s applied cautiously to diversified, blue-chip equity portfolios—striking a balance between enhanced return potential and prudent risk management.
- Time-Intensive Execution, Backed by Experience: Daily option writing requires significant time, oversight, and trading expertise. That’s where Hamilton ETFs’ experienced team—bringing over 50 years of combined options experience—makes the difference, providing thorough, hands-on management and active monitoring of the strategy each trading day.
- Capped Upside, But Mostly Uncovered: Writing call options does limit upside on the portion of the portfolio that’s covered. However, DayMAX™ ETFs typically write on just 20%, allowing 80% of the portfolio to fully participate in market gains—and since options expire daily, the entire portfolio is uncovered overnight.
- New Territory, Actively Evolving: 0DTE options are still a relatively new and evolving space, which introduces some uncertainty. But as the first to launch 0DTE options ETFs in Canada, Hamilton ETFs is leading the way—applying deep expertise, hands-on risk management, and a focus on investor outcomes.
Bottom line? While DayMAX™ ETFs offer a creative way to pull higher income from daily market movements, it’s not a plug-and-play solution for everyone. Advisors should think carefully about how it fits into a client’s overall plan—and whether daily options exposure is suitable.
Takeaways for Advisors
- More Frequent Income: Daily options allow for 250+ potential payouts a year, versus 12 with monthly strategies.
- Portfolio Complements: DayMAX™ ETFs pair well with existing covered call ETFs, offering different timing and income dynamics.
- Tax-Efficient Focus: Designed with Canadian investors in mind, with semi-monthly distributions aimed at tax-efficient income. Premium income on covered calls is generally taxed as capital gains.
- Volatility-Responsive: Coverage levels adjust daily based on market conditions, allowing for dynamic income management and upside capture.
If you’re advising clients seeking more consistent cash flow, especially in uncertain markets, DayMAX™ ETFs may potentially be the daily income engine you’ve been looking for.
[1] Source: Boyarchenko, N., Larsen, L. C., & Whelan, P. (2020, revised 2022). The Overnight Drift (Federal Reserve Bank of New York Staff Report No. 917).
