The YieldMax AI Option Income Strategy ETF (AIYY) is experiencing upward momentum, driven by a surge in market volatility that has significantly impacted the options market. The CBOE Volatility Index (VIX) saw its second-largest spike ever this week, injecting a substantial premium into S&P 500 options. This heightened volatility is largely attributed to uncertainties surrounding the U.S. government shutdown and the Federal Reserve's policy direction for 2025. Despite these short-term uncertainties, there is a prevailing belief that the stock market will stabilize following a necessary repricing of megacap tech stocks, particularly those involved in artificial intelligence.
Adding to the positive sentiment, Morgan Stanley has reiterated its confidence in Nvidia, a key player in the AI sector, despite recent market corrections. The investment bank maintains an overweight rating on Nvidia, citing strong underlying dynamics and a promising outlook for 2025. This endorsement comes as Nvidia's stock begins to recover from a five-day decline, suggesting potential for further gains. Such developments in the AI and tech sectors are likely contributing to the positive performance of AI-focused investment strategies, including the AIYY ETF.
The AIYY ETF rose to $8.76, marking a 2.45% increase from its previous close as of 11:15 AM ET on December 20th.