msty is a YieldMax etf product that gives out a very nice monthly distribution payout generated from selling options on mstr Imagine putting $400k to generate rental income from real estate or.... putting $400k on msty to generate monthly income with no maintenance, broker costs, and other stuff https://stockanalysis.com/etf/msty/dividend/
I think you are talking about yearly dividend yields on those stocks, msty is monthly YieldMax products, they have one for tsla = tsly, nvda = nvdy, coin = cony, pltr = plty All monthly dividends The best performing YieldMax product as far as I'm aware of is msty Because of how volatile mstr is and the stock (underlying) has performed well All of these products will do very poorly during a bear market in any of their underlying PS: If you had put $100k last year on msty when it first started, you would have received most if not more than your $100k in dividends by now, and you'd still have the shares continuing to give you monthly dividend of $4-8k/mo
There's a guy on YouTube (actually a few) but the channel is called Retire on Dividends On Reddit, a few math wiz have spreadsheets detailing $10k start investment to msty, reinvesting all the dividends to buying more msty shares, growing the number of shares to 10,000 to 50,000 and retiring on $12k to $200k monthly income within 5 years (lol) Everyone has a plan until a bear market in bitcoin/mstr hits them in the head, but who knows after the bear market come out with more msty shares, could still work out in time
OK, this YieldMax thing got me interested. Here is what I don't get. Why would they give away 80-100% or so of their profits annually in dividends instead of just playing the call spreads themselves and keep the profits? Also they are selling calls on a raising stock...
"These are not great products. One thing that no one seems to have grasped is that the underlying stock is getting called away, which means the underlying asset is shrinking, shrinking, shrinking, until it eventually disappears. The ETF managers HAVE to sell the underlying stock at whatever price they contracted to sell it at. So if they write/sell a call at $30 when the stock is $28 and the price rises to $32 they have to SELL the stock. If they earned 50c per share for writing the option, they've lost $1.50. And what are you talking about "these YieldMax ETF's are unique because they give investors/traders access to volatility exposure"? They're SELLING volatility, not buying it. And getting "access to volatility exposure"...this isn't a difficult thing. It's not like these terrible products have discovered some wonderful way to get "access to volatility". Buy a stock, you've got access to volatility. Do you even know WHY you'd want this?" -------------------------- "Yieldmax doesn't own the underlying stock. Effectively they make three empty promises that they never intend to keep. Promise to buy shares and sell shares with the goal that they don't have to follow through with the deal, but still collect premium. Long Call, Short Call, Short Put or whatever. I just called them empty promises, because most of their funds don't hold underlying. They essentially make a promise on three deals, and hope they work together/against eachother enough that everyone is happy and YM profits for being a middle man"
They need a big AUM to generate income, they do not buy the underlying, they do everything in synthetics but the answer to your question is YieldMax is not a charity organization, of course they earn management fees for all their efforts, which some say are run but a small team, you can have AI probably to automate all of these, sell puts, buy calls, sell call spreads, ettc etc, with a little bit of bias to the upside If you want to see that there is no free lunch, check out how your $100k would have done on tsly (sorry Vic) or any of the other YieldMax products over the course of 12 months, same monthly dividends, but lower yields I believe msty is the best yield of YieldMax due to the insane volatility of mstr and the very high options premiums generating income for the msty shareholders