I think YMAX deserves its own thread, I am going to start one soon. But when good looking East European girls are pushing a financial product on TikTok, that must ring a red flag or something... Let' say you don't know anything how they generate the payout (call it a blackbox like SBF did) just this: First monthly "dividends", now it is weekly. The dividend is not guaranteed, but the decay of your original investment is. You are encouraged not to take out the payments but reinvest it and keep the thing going for a long time. By the way the strategy doesn't even make sense, because if you are bullish on a stock, why would you cap your gains by selling calls on it? And the very short historical record shows that it sure underperforms the underlying and the market too. YMAX is down from 22 to 13 in 16 months. But the dividend should make up for that. Oh yeah, and there is also a fee included, even if it is small.
I started this as reference material for an Option's Course, got sidetracked.. Since I'm a visual learner, animations help understanding the underlying concepts
It does have that "passive income to be a millionaire" vibes Guess if I'm long both our fav ponzi BTC and MSTR, capping gains, is just a sophisicated way to say I have no brass balls.
As far as I'm concerned, it's very risky to put your life savings in this and hold for the next 10 years. I bought 1k shares, will reinvest the dividends for 6 months then sell and perhaps repeat.
Selling covered calls = picking up pennies in front of a steamroller Except there's a difference that today, the IV premium is very very high compared to in the past and it's consistent, as Saylor says, volatility is vitality and he's manifesting volatility on mstr consistently, through ATM sales, convertible debt offering, purchase of more bitcoin for treasury Also nowadays, there's 0dte and weeklies, imagine the covered call seller from 20 years ago transported to today, lol, he will go insane, the biggest casino in the stock market and growing, the options market If one invested $1M in msty a year ago, he would have gotten $1.2M in dividends by now, and he still has his msty shares earning dividends next month, $40k-$80k+ But, if he invested in mstr a year ago same time, he would have >$3M worth of mstr shares today, but no dividends If YieldMax is so good, then look at the other products that did not do as well as msty due to the underlying not having enough IV premium due to less volatility plty, tsly, nvdy A reminder that msty is for income, instead of real estate rental property, you can put $200k in there and collect the monthly income as your income, this is perfect for hodlers, tbh, I am considering it for a small portfolio allocation, or doing it myself, I created a thread on the options forum about owning 1000 mstr shares and selling weeklies on 3 covered call contracts as income because the premium is too fucking high, excuse my French
I quickly went thru the MSTY Yieldmax ETF Holdings for shits and giggles and to see how they are generating the crazy distribution rate and what one is giving up relative to MSTR long position. Ignoring Treasuries,Cash,and short term fixed income funds, MSTY is synthetically long apx 89,000 MSTR combos,(i.e Long call-short put),avg price apx 421 MSTY is short 62,500 MSTR calls , strikes 417.5 -455 strikes MSTY is long 44500 MSTR calls, split between the 475 and 480 strike. If you choose to offset the synthetic long stock with the short calls,the position breaks down to Long 26,500 MSTR synthetic long combos Short 62,500 MSTR puts 417.5-455 strikes Long 44,500 MSTR calls 475-480 strikes Another quick breakdown could be Long 71,000 MSTR synthetic long combos Short 18,000 MSTR puts (strikes shown above) Short 44,500 MSTR Call Spreads (strikes shown above) One could also look at the position as Long stock,short upside straddles, long upside wings Prices can be found at https://www.yieldmaxetfs.com/our-etfs/msty/
Thank you very much, kind sir Tao msty will do well, since mstr will be way above $700/share as they get added to the S&P 500 with massive net income 2nd quarter results We just need bitcoin to close above $100k on June 27, 2025 ------------------------- Okay, let's break down this complex options position for MSTY (likely a fund or entity) regarding MSTR (MicroStrategy stock) in simple terms. Think of this like a layered bet on whether the price of MSTR stock will go up or down. Here's the basic idea: The Main Bet (Synthetic Long): MSTY has a large position (approx 89,000 synthetic long combos at an average price of approx $421). What's a "Synthetic Long Stock"? This is an options strategy (usually buying a call option and selling a put option at the same strike price and expiration) that acts very much like simply owning the underlying stock. In simple terms: This large position means MSTY is making a big bet that MSTR's stock price will go UP from around $421. If MSTR goes above $421, this part of their position makes money. If MSTR goes below $421, this part loses money, similar to how owning actual shares would behave. Complicating Bets (Other Calls & Puts): Besides this main "stock-like" bet, they have other option positions that adjust the main bet: Short 62,500 MSTR calls (strikes 417.5 - 455): They have SOLD a large number of call options with strike prices in this range. In simple terms: Selling call options means they profit from the premium received, BUT if MSTR's price goes above these strikes ($417.5 to $455), they start to lose money on this specific part of the position. This effectively limits how much profit they can make from their main "stock-like" bet if the price rises into or through this range, and adds risk if it goes significantly above $455. Long 44,500 MSTR calls (strikes 475 and 480): They have BOUGHT a significant number of call options with higher strike prices. In simple terms: Buying call options means they paid a premium, and they only make money on this specific part of the position if MSTR's price goes above $475 or $480. This position provides upside potential or a hedge if MSTR makes a very large move higher, potentially offsetting the losses they might experience on their short calls if the price surges. Putting it all together (Overall Strategy): MSTY has a large bullish core position (the synthetic long), betting on MSTR rising from around $421. However, they have added layers that modify this bet: The short calls (417.5-455) suggest they might be trying to generate income (from selling the options) or believe the price might not go too far above this range, accepting limited upside in this zone in exchange for the premium. The long calls (475-480) suggest they are still positioning themselves to profit from a very strong upward move in MSTR, or protecting themselves against the significant losses that could occur from their short calls if MSTR rockets above $455. It's a complex combination, but the synthetic long is the largest component indicating a primary bullish stance, adjusted by other options that cap gains in certain ranges while potentially allowing for profit/protection on a big upside move. Regarding the Breakdowns: The two "quick breakdowns" you provided are just different ways of summarizing the net result of combining all these positions. Breakdown 1: Shows that after accounting for the short calls against the synthetic long, they are left with a smaller "stock-like" position (26,500 combos), a large exposure to downside risk if MSTR falls (short puts), and the bet on a big upside move (long calls). Breakdown 2: Shows a larger "stock-like" position (71,000 combos), a smaller exposure to downside risk if MSTR falls (short puts), and a structure involving call spreads (shorting call spreads is often a bearish or neutral-to-bearish strategy, usually aiming to profit if the stock stays below a certain level, but the specifics depend on the strikes used in the spread and are unclear here). Both breakdowns are just different perspectives on the same underlying set of option contracts, highlighting different net exposures depending on how you group the initial long and short positions. The core is a large bullish synthetic long, modified by other calls and puts.
You are gooood!!! How one breaks down the position is really how they are wired... I gravitate towards the Long Stock,Short puts,Long wings..Thats just what I see at first glance,and it is the easiest for me to digest... Regardless,Im still not sure how they can have such large distributions with vol getting hammered.. Admittedly,I havent broken down the position and pricing
Oh, I'm very sorry, I thought it was obvious my reply was from an AI, I told Google Gemini Advanced ($21/mo subscription, heh,, but I already was paying for storage subscription so some costs are offset) to explain in simple terms, then pasted your words I'm not capable of that level of analysis, but your post was good explanation, to begin with, Google Gemini just confirmed some stuff of the way I understood your post
It did creep into my head that you may have had a little assistance Looks like thrier short options are going out this week,the upper wings expire a week later.. So theres a diagnol in there as well Im going to put on a similar position... for fun