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The U.S. vs. China trade spat has quickly turned the U.S. market volatile. When President Trump announced potential retaliation on October 10 over rare earth metals, the Dow dropped by more than 1200 points. On Monday, the market recovered with a gain of 300 points. Then on Tuesday, October 14, the Dow was down 400 points early in the trading day.

Volatility like this will put high-yield, income-focused stocks and ETFs on sale. Buying dividend-paying shares when prices are down can grow your income at an even higher yield. However, the volatility hit almost all asset classes, with gold as the exception. Bitcoin had been at a record high of $126,200 on October 6. On Tuesday, October 14, it was down to $111,600.

In my ETF Income Edge newsletter service, we have had great results with Bitcoin ETFs that use option-selling strategies to generate attractive yields. Continued gains by Bitcoin seem inevitable, but there are significant drawdowns along the way. Buying high-yield Bitcoin covered call ETF shares on the dips can pay off with substantial income and share price appreciation.

Launched on April 28, 2025, the Amplify Bitcoin 2% Monthly Option Income ETF (BITY) has a stated focus of both growth and high income. As the name suggests, BITY managers sell options to generate a 2% monthly, or 24% annual, dividend yield. Other Bitcoin covered call ETFs have yields north of 40%, and the lower yield should let BITY capture more upside when the crypto price rises.

The Amplify website notes the fund can harvest volatility, which is what we are discussing today. Here is the description: “When Bitcoin price volatility rises, BITY’s option income potential increases, using volatility to help enhance premium income and total returns.”

From inception through September 30, BITY returned 23.52%, more than double the expected dividend income for six months.

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