So you are telling me - MSTY

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the more traders buy Microstrategy calls that expire worthless, the better this ETF and its divvies will be

an intriguing way to make money off MSTR and bitcoin bulls who overshoot their target

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Fund Overview
The YieldMax™ MSTR Option Income Strategy ETF (MSTY) is an actively managed fund that seeks to generate monthly income by selling/writing call options on MSTR. MSTY pursues a strategy that aims to harvest compelling yields, while retaining capped participation in the price gains of MSTR.

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It's only been out for about 14 months and the monthly divided per share has ranged from 1.3 to about 4.4. If you buy in you want to the price on the low side so you don't lose original principle face value. The fund went up to $40 or so last year, so now is a good time to buy (anything under $25 is probably a great price). So far I love this etf. You can use the monthly payouts to pay bills or even DCA into other positions.

Just assume high divs are short term. I’m not aware of any high income div payers that are long term.

Sure.

Lets say i own 1,000 shares of MSTR. Quite a lot. But, since im a daytrader , and i definitely know what im doing, and need to make money, i decide to begin selling options against my shares.

An option is the right, but not the obligation, to buy or sell 100 shares of a stock at expiration. These also have cash values that fluctuate up and down constantly based on mstr price

Lets pretend MSTR is trading at $400, for simplicity.

I can sell whatever option i want, with the key variables being expiry (date the option expires) and strike (the price i tempt a buyer to buy at. also the price i personally dont think that mstr will go to in my time period, which ill explain later)


So, i Sell a call option to someone for $300. The expiry is June 13th. The strike is $500

Heres how I, the seller, win this trade:

MSTR stays at $400 until June 13th. Ive pocketed your $300 and nothing changed
MSTR goes down to $350. I keep the premium ($300) but my share values dropped
MSTR goes to $490 on june 13th. I still keep your money, and my shares go up.

Here is how it goes bad:
MSTR goes to $600 on june 13th. The call gets exercised. I am forced to sell 100 shares of MSTR at $500, when its trading for $600. This is a bad trade. I got $300 up front, but now miss out on $100 x 100 gains


Now imagine a fund like Yieldmax doing these types of trades with millions of mstr shares, with professional analytics, forecasting, algorithms, people who spend 18 hours a day thinking about nothing but mstr, on and on

This is how they are generating income to pay the dividend.

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actively managed fund that seeks to generate monthly income by selling/writing call options on MSTR.

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I put 30% of my monthly and weekly divs into SGOV. The rest I either use for fun money or lower my cost basis when things are down.

MSTY just hit its ex-date today, so the price dropped by the DIV amount of $1.47. It was sitting at/near $20 even earlier. I would buy that sucker if I had some extra cash sitting around.

My average cost is $19.50. I keep adding when it dips into the $20 range. I keep track of my monthly dividends so I know when I'm playing with house money.

I was thinking about doing this in both accounts. Is it worth the risk to test it out for a few months? I was going to do $20k in Roth and $5k in individual brokerage.

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Please excuse my ignorance as I’m not very well rehearsed on how this all works. Could someone just drop $1mm into msty and get ~$115,000 in dividend payouts monthly at the current 139% dividend yield?

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That is my understanding, but just not sure if the stock will hold its value.

Another one that has a large dividend is ULTY

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Please excuse my ignorance as I’m not very well rehearsed on how this all works. Could someone just drop $1mm into msty and get ~$115,000 in dividend payouts monthly at the current 139% dividend yield?

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Please understand this is a very high risk play.