After several twists and turns, Wall Street is on a blistering rally to end 2023.

The Nasdaq 100 Enhanced Options Income ETF (QQQY​​​​​​​) fund has done well in the past three months as demand for zero day-to-expiration (0DTE) options rise.

It is quite possible that the current level of VIX is too depressed compared to the correlation of its components, with mechanical selling by ETFs as a contributing factor.

Last year, which was brutal for stocks, these ETFs fell less than the broader indexes. This year, however, stocks have staged a very impressive rally, and these funds are lagging.

A covered call is an investment strategy used to generate income and potentially hedge against downside risk. It involves buying a stock or a basket of stocks and then selling or writing call options on those same assets.