Strategy. The Fund is an actively managed exchange-traded fund (ETF) that seeks current income while providing indirect exposure to the share price ( i.e. , the price returns) of the Underlying Security, which is generally subject to participation in a portion of potential investment gains. The Fund will employ its investment strategy as it relates to the Underlying Security regardless of whether there are periods of adverse market, economic, or other conditions and will not take temporary defensive positions during such periods. As further described below, the Fund uses either a synthetic covered call strategy or synthetic covered call spread strategy to seek to generate options premiums and provide indirect exposure to the share price returns of the Underlying Security, which … Show more… The Fund is an actively managed exchange-traded fund (ETF) that seeks current income while providing indirect exposure to the share price ( i.e. , the price returns) of the Underlying Security, which is generally subject to participation in a portion of potential investment gains. The Fund will employ its investment strategy as it relates to the Underlying Security regardless of whether there are periods of adverse market, economic, or other conditions and will not take temporary defensive positions during such periods. As further described below, the Fund uses either a synthetic covered call strategy or synthetic covered call spread strategy to seek to generate options premiums and provide indirect exposure to the share price returns of the Underlying Security, which is generally subject to participation in a portion of potential investment gains as a result of the nature of the options strategy it employs. The Fund not only seeks to generate options premiums but also aims to derive gains when the value of the Underlying Security increases. The Funds options contracts provide: ? indirect exposure to the share price returns of the Underlying Security, ? option premiums, and ? at most times, participation in a portion of gains, if any, of the share price returns of the Underlying Security. For more information, see sections The Funds Use of Underlying Security Option Contracts and Synthetic Covered Call Strategy below. Why invest in the Fund? ? The Fund seeks to generate weekly cash distributions, which is not dependent on the price appreciation of the Underlying Security. ? The Fund seeks to participate in a portion of the gains experienced by the Underlying Security. That is, although the Fund may not fully participate in gains in the Underlying Securitys stock price, the Funds portfolio is designed to generate options premiums. An Investment in the Fund is not an investment in the Underlying Security. ? The Funds strategy will capture only a portion of its potential gains if the Underlying Securitys stock price increase in value. ? The Funds strategy is subject to all potential losses if the Underlying Securitys stock price decrease in value, which may not be offset by the options premiums received by the Fund. ? The Fund does not invest directly in the Underlying Security. ? Fund shareholders are not entitled to any Underlying Security dividends. While the Fund seeks to provide current income pursuant to its investment objective, a portion (sometimes significant) of the Funds distributions may be classified as return of capital (ROC) for financial or tax reporting purposes. Generally speaking, ROC refers to the portion of a distribution from an investment that represents a return of the original investment (principal) rather than income or profit. Accordingly, such distributions do not necessarily reflect the Funds income or yield. See the prospectus section titled Additional Information About the Funds for more information about option premiums and ROC. Additional information regarding the Underlying Security is also set forth below. The Funds Use of Underlying Security Option Contracts As part of the Funds synthetic covered call strategy and synthetic covered call spread strategy, the Fund will purchase and sell a combination of standardized exchange-traded and FLexible EXchange (FLEX) call and put option contracts that are based on the value of the price returns of the Underlying Security. ? In general, an option contract gives the purchaser of the option contract the right to purchase (for a call option) or sell (for a put option) the underlying asset (like shares of the Underlying Security) at a specified price (the strike price). ? If exercised, an option contract obligates the seller to deliver shares (for a sold or short call) or buy shares (for a sold or short put) of the underlying asset at a specified price (the strike price). ? Options contracts must be exercised or traded to close within a specified time frame, or they expire. See the chart in section Fund Portfolio below for a description of the option contracts utilized by the Fund. Standardized exchange-traded options include standardized terms. FLEX options are also exchange-traded, but they allow for customizable terms (e.g., the strike price can be negotiated). For more information on FLEX options, see Additional Information about the Funds Exchange Traded Options Portfolio. The Funds options contracts are based on the value of the Underlying Security, which gives the Fund the right or obligation to receive or deliver shares of the Underlying Security on the expiration date of the applicable option contract in exchange for the stated strike price, depending on whether the option contract is a call option or a put option, and whether the Fund purchases or sells the option contract. Synthetic Covered Call Strategy In seeking to achieve its investment objective, the Fund may implement a synthetic covered call strategy using the standardized exchange-traded and FLEX options described above. ? A traditional covered call strategy is an investment strategy where an investor (the Fund) sells a call option on an underlying security it owns. ? A synthetic covered call strategy is similar to a traditional covered call strategy in that the investor sells a call option that is based on the value of the underlying security. However, in a synthetic covered call strategy, the investor (the Fund) does not own the underlying security , but rather seeks to synthetically replicate 100% of the price movements of the underlying security through the use of various investment instruments. The Funds synthetic covered call strategies consists of the following three elements, each of which is described in greater detail farther below: ? Synthetic long exposure to the Underlying Security, which allows the Fund to seek to participate in the changes, up or down, in the price of shares of the Underlying Security. ? Covered call writing (where the Underlying Securitys call options are sold against the synthetic long portion of the strategy), which allows the Fund to generate options premiums. ? U.S. Treasuries, which are used for collateral for the options, and which generate income. 1. Synthetic Long Exposure To achieve a synthetic long exposure to the Underlying Security, the Fund will buy the Underlying Securitys call options and, simultaneously, sell the Underlying Securitys put options to try to replicate the price movements of the Underlying Security. The call options purchased by the Fund and the put options sold by the Fund will generally have one-month to six-month terms and strike prices that are approximately equal to the then-current share price of the Underlying Security at the time the contracts are purchased and sold, respectively. The combination of the long call options and sold put options provides the Fund with indirect investment exposure equal to approximately 100% of the Underlying Security for the duration of the applicable options exposure. 2. Covered Call Strategies Covered Call Strategy As part of its strategy, the Fund will write (sell) call option contracts on the Underlying Security to generate options premiums. Since the Fund does not directly own the Underlying Security, these written call options will be sold short (i.e., selling a position it does not currently own). The Fund will seek to participate in the share price appreciation of the Underlying Security, if any. However, due to the nature of covered call strategies, the Funds participation may be subject to a cap (as described below). In this strategy, the call options written (sold) by the Fund will generally have 1- month or less expiration dates (the Call Period) and generally have a strike price that is approximately 0%-15% above the then-current share price of the Underlying Security. It is important to note that the sale of the Underlying Security call option contracts will limit the Funds participation in the appreciation in the Underlying Securitys stock price. If the stock price of the Underlying Security increases, the above-referenced synthetic long exposure alone would allow the Fund to experience similar percentage gains. However, if the Underlying Securitys stock price appreciates beyond the strike price of one or more of the sold (short) call option contracts, the Fund will lose money on those short call positions, and the losses will, in turn, limit the upside return of the Funds synthetic long exposure. As a result, the Funds overall strategy (i.e., the combination of the synthetic long exposure to the Underlying Security and the sold (short) the Underlying Security call positions) will limit the Funds participation in gains in the Underlying Securitys stock price beyond a certain point. Covered Call Spread Strategy The Adviser will employ the Covered Call Spread Strategy when it believes it is a better strategy for the Fund as compared to the Covered Call Strategy. The Fund may write (sell) credit call spreads (described below) rather than stand-alone call option contracts to seek greater participation in the potential appreciation of its Underlying Securitys share price, while still generating net options premiums. The Adviser will primarily employ this covered call spread strategy when it believes that the share price of its Underlying Security is likely to rise significantly in the short term (e.g., following a substantial selloff or overall positive market news). Additionally, the Adviser may use this strategy in other scenarios (e.g., if the market is undervaluing further out-of-the-money options relative to near-the-money options), where it believes the use of credit call spreads may prove more advantageous to the Funds total return than the covered call strategy. A credit call spread involves selling a call option while simultaneously buying a call option with a higher strike price, both with the same expiration date. By writing credit call spreads, the Fund can potentially offset losses incurred from its short call positions if the Underlying Securitys share price rises above the strike price. 3. U.S. Treasuries The Fund will hold short-term U.S. Treasury securities as collateral in connection with the Funds synthetic covered call strategy. The Fund may also invest in pooled vehicles (e.g., mutual funds and ETFs) that invest in U.S Treasuries. The Fund intends to continuously maintain indirect exposure to the Underlying Security through the use of options contracts. As the options contracts it holds are exercised or expire it may enter into new options contracts, a practice referred to as rolling. The Funds practice of rolling options may result in high portfolio turnover. Funds Weekly Distributions The Fund will seek to provide weekly cash distributions. The Fund will seek to generate such distributions in the following ways: ? Writing (selling) call option contracts on its Underlying Security as described above to generate options premiums. A premium, in this context, refers to the price the option buyer pays to the option seller (the Fund) for the rights granted by the option. The amount of these premiums is largely affected by the fluctuations in the Underlying Securitys stock prices. However, other elements like interest rates can also influence the level of premiums. ? Investing in short-term U.S. Treasury securities. The income generated by these securities will be influenced by interest rates at the time of investment. ? In addition, the Funds use of the Synthetic Covered Call Spread Strategy may occasionally allow it to capture a substantial portion of any significant increase in the price of its Underlying Security. When this happens, the Fund could receive profits exceeding the initial cost of the call options, and the Funds distributions may include some of those profits. Funds Return Profile vs its Underlying Security For the reasons stated above, the Funds performance will differ from that of the Underlying Securitys stock price. The performance differences will depend on, among other things, the price of the Underlying Security, changes in the value of the Underlying Security options contracts the Fund holds, and changes in the value of the U.S. Treasuries. Fund Portfolio Principal Holdings Portfolio Holdings (All options are based on the value of the Underlying Security) Investment Terms Expected Target Maturity Purchased call option contracts at-the-money ( i.e., the strike price is equal to the then-current share price of the Underlying Security at the time of purchase) to provide indirect exposure to positive price returns of the Underlying Security. If the Underlying Security share price increases, these options will generate corresponding increases to the Fund. 1-month to 6-month expiration dates Sold put option contracts at-the-money ( i.e., the strike price is equal to the then-current share price of the Underlying Security at the time of sale). They are sold to help pay for the purchased call options described above. However, the sold put option contracts provide exposure to the full extent of any share price losses experienced by the Underlying Security. 1-month to 6-month expiration dates Sold (short) call option contracts ( Covered Call Strategy ) The strike price is approximately 0%-15% more than the then-current share price of the Underlying Security at the time of sale. They generate options premiums. However, they also limit some potential positive returns that the Fund may have otherwise experienced from gains in the Underlying Securitys share price. 1-month or less expiration dates Sold (short) call option contracts (Covered Call Spread Strategy) The strike price is approximately 0%-15% more than the then-current share price of the Funds Underlying Security at the time of sale. Sold call option contracts provide inverse exposure to the full extent of any increases in the value experienced by the Funds Underlying Security, minus the premium received. 1-month or less expiration dates Purchased call option contracts (Covered Call Spread Strategy) out-of-the-money (i.e., the strike price is above the strike price of the corresponding Covered Call Spread Strategy sold call). Bought call option contracts provide exposure to the full extent of any increases in the value experienced by the Funds Underlying Security above the options strike price. 1-month or less expiration dates U.S Treasury Securities and Cash Multiple series of U.S. Treasury Bills supported by the full faith and credit of the U.S. government. These instruments are used as collateral for the Funds derivative investments. They will also generate income. 6-month to 2-year maturities The market value of the cash and treasuries held by the Fund is expected to be between 50% and 100% of the Funds net assets and the market value of the options package is expected to be between 0% and 50% of the Funds net assets. In terms of notional value, the combination of these investment instruments provides indirect investment exposure to PLTR equal to at least 95% of the Funds total assets. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus borrowings for investment purposes, in securities and financial instruments that provide indirect exposure to PLTR. The Fund is classified as non-diversified under the 1940 Act. There is no guarantee that the Funds investment strategy will be properly implemented, and an investor may lose some or all of its investment. Palantir Technologies Inc. (PLTR) PLTR builds software that empowers organizations to effectively integrate their data, decisions, and operations at scale. PLTR is listed on the The Nasdaq Stock Market LLC (Nasdaq). Per PLTRs most recent Form 10-K filing, the aggregate market value of common stock held by non-affiliates of PLTR (based on the last reported sale price of its class A common stock on June 28, 2024, on the Nasdaq) was approximately $51.5 billion. PLTR is registered under the Securities Exchange Act of 1934, as amended (the Exchange Act). Information provided to or filed with the SEC by PLTR pursuant to the Exchange Act can be located by reference to SEC file number 001-39540 through the SECs website at www.sec.gov. In addition, information regarding PLTR may be obtained from other sources including, but not limited to, press releases, newspaper articles and other publicly disseminated documents. This document relates only to the securities offered hereby and does not relate to the shares of PLTR or other securities of PLTR. The Fund has derived all disclosures contained in this document regarding PLTR from the publicly available documents. None of the Fund, the Trust, the Adviser or their respective affiliates has participated in the preparation of such publicly available offering documents or made any due diligence inquiry regarding such documents with respect to PLTR. None of the Fund, the Trust, the Adviser or their respective affiliates makes any representation that such publicly available documents or any other publicly available information regarding PLTR is accurate or complete. Furthermore, the Fund cannot give any assurance that all events occurring prior to the date hereof (including events that would affect the accuracy or completeness of the publicly available documents described above) that would affect the trading price of PLTR (and therefore the price of the Fund at the time we price the securities) have been publicly disclosed. Subsequent disclosure of any such events or the disclosure of or failure to disclose material future events concerning PLTR could affect the value received with respect to the securities and therefore the value of the securities. None of the Fund, the Trust, the Adviser or their respective affiliates makes any representation to you as to the performance of PLTR. NONE OF THE FUND, TIDAL TRUST II, OR TIDAL INVESTMENTS LLC IS AFFILIATED, CONNECTED, OR ASSOCIATED WITH PLTR. THE FUND WAS NOT DEVELOPED OR CREATED BY, AND IS NOT SPONSORED, ENDORSED, OR APPROVED BY, PLTR. Moreover, PLTR has not participated in the development of the Funds investment strategy. PLTR does not select or approve the Funds portfolio holdings, nor does it participate in the construction, design, or implementation of the Fund. PLTR does not provide any assurances, guarantees, or representations regarding the Fund or its performance. Nothing herein shall be construed as an offer of any security by PLTR. None of the Fund, the Trust, the Adviser, or their respective affiliates claim any ownership interest in any trademarks owned by Palantir Technologies Inc. or PLTR. All rights in the trademarks are reserved by their respective owners. Due to the Funds investment strategy, the Funds investment exposure is concentrated in (or substantially exposed to) the same industry as that assigned to PLTR. As of the date of the Prospectus, PLTR is assigned to the software industry. Show less