.png)
TappAlpha's TSPY LIFT ETF Takes the 0DTE Income Strategy to New Heights
The ETF industry's latest innovation is leveraging a leveraged strategy. Yes, really.
TappAlpha just launched the TSPY LIFT ETF (ticker: TSYX) on January 7, 2026, and it might be the most meta ETF of the year so far. The fund offers 1.3x daily leveraged exposure to... wait for it... TSPY, TappAlpha's own 0DTE covered call ETF.
If you're keeping score at home, that's leverage on top of an options overlay strategy on top of the S&P 500. We've reached new heights of financial engineering, folks.
The Setup
For those unfamiliar, TappAlpha burst onto the scene in August 2024 with TSPY, an actively managed ETF that holds SPY while selling same-day expiring covered calls. The pitch: capture most of the S&P 500's upside while generating juicy income from 0DTE options premiums.
The strategy worked. TSPY has gathered over $172 million in assets, delivered a 14%+ yield, and posted a total return north of 17% since inception. Not bad for a Seattle fintech startup founded in 2023 by Si Katara, a tech entrepreneur who previously built HeadLight Technologies to Inc. 5000 status.
Then came TDAQ in September 2025, applying the same strategy to the Nasdaq-100. That fund crossed $25 million AUM in under two months.
Now? They're leveraging their own success. Literally.
How It Works
TSPY LIFT uses swap agreements and FLEX options to deliver 130% daily exposure to TSPY's price movements. The fund is advised by Tuttle Capital Management (the leveraged single-stock ETF pioneers) with TappAlpha serving as sub-adviser.
The prospectus makes clear this isn't for the faint of heart: “An investor could lose the full principal value of his/her investment within a single day if the price of TSPY falls by more than 50%.”
The math gets interesting. TSPY already employs an options strategy that caps some upside while generating income. Adding 1.3x leverage on top means:
- Amplified participation in TSPY's gains (when it gains)
- Amplified losses when TSPY declines
- Daily rebalancing that creates path dependency
- The compounding effects that leveraged ETF investors know all too well
The Bigger Picture
What makes this launch notable isn't just the financial engineering, it's what it signals about the ETF industry's evolution.
We've gone from plain vanilla index funds to leveraged index funds to single-stock leveraged ETFs to 0DTE covered call ETFs to... leveraged 0DTE covered call ETFs. Each layer adds complexity, cost, and potential return (or loss).
TappAlpha is betting that their core TSPY strategy has proven robust enough to support a leveraged wrapper. With TSPY's track record and the ongoing appetite for income-generating products in a world where the Fed's rate path remains uncertain, they might be right.
The timing is bold. We're entering year three of a bull market, valuations are stretched, and the VIX sits near 15. Launching a leveraged product on an options-based ETF in this environment suggests confidence, either in the strategy's durability or in investor demand for yield enhancement regardless of market conditions.
Who's This For?
The prospectus is blunt: “The Fund is designed to be utilized only by sophisticated investors, such as traders and active investors employing dynamic strategies.”
Translation: this is a tactical trading tool, not a buy-and-hold retirement vehicle.
For those willing to actively monitor positions, TSPY LIFT offers amplified exposure to TappAlpha's daily income strategy. For everyone else, the original TSPY remains available with its simpler risk profile and proven track record.
The Bottom Line
TappAlpha has gone from zero to three ETFs in 17 months, with $200+ million in combined AUM. The TSPY LIFT launch shows they're not content to rest on their flagship's success.
Whether “leverage on leverage” proves brilliant or cautionary will depend on market conditions and investor discipline. But you have to admire the audacity of the pitch: “You liked our 14% yield? How about we make it spicier?”
Welcome to 2026, where even the income strategies get their own leveraged versions.
Comments