You don't get it dude. They poach NAV but the payout is (-)correlated to the vol-line. MSTR IV is bottom decile. The div is definitely going to be <1.5. Critical thinking.
You're right, I don't get your lingo as I don't have a technical trading background (my posts should be obvious enough). I'm sure you're trying to say something meaningful but to get your point across it needs to be explained in layman's terms. The great thing about trading is I can still be relatively successful making money without the decades experience.
The volatility implied by the option prices in MSTR have dropped. MSTR is essentially a leveraged BTC ETF. MSTY's dividend payments are correlated to the level of volatility on MSTR's options. The ETF managers are net sellers of volatility so when vol drops, their returns drop and thus the div-payout. I stated this months ago. MSTR's option volatility is trading in the bottom decile of it's historic range. At one point the implied vols on MSTR were >100% (annualized) and now they are half that figure. The dividend payout has a higher correlation to implied vol then MSTR's share price as they are essentially short upside calls and long downside puts (hedged), but net-net they are a seller of volatility. The downside hedge is a sunk cost when BTC and MSTR rallies.
Thanks for the clarification. In short, you're saying that MSTR's significantly reduced volatility plays against MSTY's trading model, thus shrinking divs.
I am trying to replicate MSTY's trading approach on Nifty. One modification that I made is that I have parallel short combo with covered put in the same account. Due to this I will be forced at the month end to rollover into the next month with the same gap between the long combo and short combo. Experimenting with just two lots each side. Any thoughts?
It's from a paid subscription, which released a new indicator that uses AI, but as I mentioned in the post doesn't work (for me, maybe needs some other research)
Are those buy recommendations from that subscription? Just curious. It recommended Glaxo. I am holding that scrip for more than three years and has been adding on to it for a while now.
Not buy recommendations but indicator screeners alerts, meets the criteria to flip "gold" uptrend, vs "blue" downtrend against US $, Bitcoin at the time I made the screenshot, Glaxo surpassed the 3rd indicator AI, but that is no longer true today when I looked (Glaxo) I have not finished the lessons, so I have no idea how it works, but as of today, Glaxo is blue on the 1 hour and 15 minute candles (downtrend) but still gold on the daily candles cto larsson on YouTube for more info