Kurv Yield Premium Strategy Apple (AAPL) ETF (AAPY US) – Portfolio Construction Methodology

The investment process governing the actively managed Kurv Yield Premium Strategy Apple (AAPL) ETF seeks current income while maintaining day-to-day economic exposure to AAPL with capped upside. The portfolio implements a static-replication options overlay that buys call options on AAPL and simultaneously sells put options on AAPL, generally using at-the-money strikes with one-to-twelve-month terms. Premiums from written puts help finance purchased calls, producing a defined asymmetric payoff around the underlying while avoiding direct stock ownership. Position sizing reflects option contract notionals and collateral management, with cash and cash equivalents used to meet margin and settlement needs. The team rolls, re-strikes and re-terms positions on an ongoing basis to keep exposure near spot and to manage gamma/theta decay, assignment risk, and gap risk around events. Risk controls center on exchange-traded options, term dispersion across expiries, and disciplined roll mechanics rather than discretionary stock selection or sector bets.

To explore AAPY in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/AAPY_US