Many posts regarding msty on the mstr thread... msty is a YieldMax product that pays a monthly dividend (distribution) I'm halfway on the The YouTube video below which is interesting... People are borrowing from credit cards, against their house, putting in life savings, to put into msty,
When it comes to MSTY I do the math in terms of car loans and mortgages being paid out. Let's just say one had 5k shares of MSTY. Over the last year, dividends alone have returned 160k...factor in your own NAV based on your avg price...but does it really matter if you are getting paid? It's not about capital gain, its about generating income. @johnarb are you back if for the big pay days????
I'm not back, yet, waxy, but do feel the fomo to msty every time I read of people borrowing money to put in there, there is just no loan interest that can beat msty yield, I got my funds tied up in mstr call options and when (if) they pay out with good (excellent) profits, I would like to go back to msty and (or) buy mstr shares and sell covered calls did you watch the youtube video? I thought it was very informative even as many of the options concepts discussion went over my head
Just watching it...I basically invented this system with my Hulk strategy. In a nutsell there is always liquidity for selling premium, and the majority of options will expire worthless. Over time you will accumulate more in premium than you will lose in capping gains. "Yes, a significant portion of option contracts do expire worthless or are closed for a loss before expiration. A study by the Options Clearing Corporation (OCC) found that approximately 76% of all options contracts are closed out or expire worthless."
Thanks John for making the new thread, I got too lazy. The whole Yieldmax ETf thing is fascinating. In a way that it is more of a practical ponzi, not a straight up ponzi. What I don't get is this: Why would the company pay out as much in dividends as the stock price (100% pay out) and only keep 1% as fees, when they could do the same for themselves with their own money? I mean generating 1 M on a 100 AUM from fees is the same as generating 1M profit with 1 M capital, but I assume the later is way less hassle? So why not just keep doing the money printing and forget about 1% fees and trying to raise money? And if this actually works in the long run, why not raise the fees to 50% and just pay out 50%, like any decent HF would do?
So in plain English you are saying the pay out last year was equivalent with the stock's price (that being $32 a year ago). So if you bought in a year ago and you took profits, it is a free ride from here. I understand MSTY is their best performing ETF and TSLY didn't do as well. Can we post the returns on some of the other ETFs too?
You can replicate what they do by selling your own options...if you are willing to take on shares. However, they have more means and instruments to ride the bumps. They will at times use part of the NAV to pay the Dividends if you read the prospectus. Why they do it? They are making money!
That was my next question. looks like your quoted example is with reinvested dividends, because the dividend.com list the annual as 68%. Actually TSLY is quoted as 92%. https://www.dividend.com/etfs/tsly-tidal-trust-ii-yieldmax-tsla-option-income-strategy-etf/