re: So you are telling me - MSTY

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the overwhelming advice was the secret to overcoming NAV erosion with YM is the DRIP.

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i am in these funds and most say the opposite i have spoken with, pull out all profits. no drip. The faster you get all your initia linvestment $$ back the better. The goal with ULTY is get to house money ASAP and then keep drawing the profits from selling the options(which is what they do for you in the fund. these are not real dividends).

if you look at the history of ULTY while it looks steady for now (and we hope it stays that way) it has slowly had theta decay. the damn thing is paying 147% return. you can get your money back then just draw until the thing implodes. who cares then it will all be house money. If you do a drip and it keeps decaying you had best hope the increased dividend amount you will get by re-investing can outweigh your NAV losses.

looks like it went from 14 to 5 something and now is up to 6.15 range.

i am buying on DIPS for now and setting stop losses. see what happens.

I have had well into 6 figures in highly volatile dividend payers and been burned by not treating it as a trade with stops and forgetting about it. Maybe these weekly payers will be better with the covered call options.

I have some in XDTE as well.

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Would it not be faster to allow the drip to compound the returns and then sell off the shares to get back your initial investment?

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in a perfect world you could. absolutely IF it holds steady. again that is just hoping you do not have enough decay that wipes out your profits. I had a fund before that kept going down and my DRIP was useless. the drop was way more than the dividends. I just think most are concerned to keep putting money back in even if it extends the duration of initial ROI. We might be comparing apples to oranges but there was a ETN years back that myself and others were in. was paying high dividends. we did the same thing we pulled out all profit. luckily i sold before the whole thing dissolved and crashed. got out just in time. made nice profits as the NAV did not go down the note just dissolved. we expected it at any time so it was a HIGH risk play and we knew it thus us pulling out each dividend. I won't mess with an ETN again. These SHOULD be much safer but i am basically treating these as trades.