Amplify Launches SOLM ETF Offering 3% Monthly Solana Income
Amplify ETFs has introduced the Amplify Solana 3% Monthly Option Income ETF (SOLM), a unique fund combining covered call strategies with Solana exposure to provide investors with consistent returns and higher monthly income, targeting 36% annual option premium income and a 3% monthly yield. The fund's YieldSmart™ strategy utilizes short-dated weekly options for compounded income and greater adaptability to Solana's volatility. While Solana's token (SOL) experienced a 19.9% weekly drop, technical analysis signals potential bullish recovery above $160, with resistance at $175 and $195. Analysts suggest long-term positioning opportunities around $122 and regaining $200 would confirm a trend reversal.
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Introduction to SOLM ETF
Amplify ETFs has launched the Amplify Solana 3% Monthly Option Income ETF (SOLM), a first-of-its-kind fund that gives investors exposure to Solana with high monthly income potential. The fund is part of Amplify’s YieldSmart™ series, combining covered call strategies with Solana price exposure to generate consistent returns. Its objective is to capture Solana’s growth momentum, offering a targeted 36% annual option premium income and 3% monthly yield.
Innovative Option Strategy for High Income
According to the press release, SOLM’s portfolio structure is split into two components: 30–60% dedicated to covered calls and 40–70% for direct Solana exposure. The covered call segment uses weekly out-of-the-money options, allowing investors to earn option premiums while retaining 5–10% weekly upside potential. The remainder of the portfolio is linked to Solana’s long-term price appreciation.
Christian Magoon, CEO of Amplify ETFs, stated, “Amplify is excited to join the Solana ecosystem with a first-of-its-kind SOL target option income and capital appreciation ETF.” He highlighted that SOLM is designed to deliver an innovative income solution that surpasses Solana staking income, while maintaining over 5–10% weekly SOL capital appreciation potential.
YieldSmart™ Strategy Benefits
The SOLM fund’s YieldSmart™ strategy leverages short-dated weekly options, which offer four times more frequent resets compared to traditional monthly options. This approach allows for compounded income generation and better adaptation to Solana’s price volatility, maximizing income potential.
Solana's Market Performance
As of press time, Solana’s native token (SOL) traded at $156.54, with a market capitalization of $86.6 billion. Despite a 19.9% weekly decline, analysts see signs of a potential rebound. On Solana’s daily chart, analysts observed a Tweezer Bottom pattern near the $150 support level, suggesting early bullish reversal potential. A sustained move above $160 could open resistance targets at $175 and $195.
Key Risks and Market Observations
However, analysts warn that losing the $150 support level could result in another decline to $138. This highlights the importance of follow-through buying to confirm recovery momentum.
Market observer Lennaert Snyder pointed out that Solana’s current weekly range is attractive for long-term positioning. He noted that a potential retest of the $122 zone could represent a strong buying opportunity. Additionally, reclaiming the $200 level would likely signal the end of the ongoing downtrend.