MSTY
YieldMax MSTR Option Income Strategy ETF
stock NYSE ETF

Reminds me of Yieldmax inviting YouTubers to ring the bell with them for MSTY

Reminds me of Yieldmax inviting YouTubers to ring the bell with them for MSTY

Few reasons:
First, there is an opportunity cost in not just holding the underlying. Covered Calls implicitly limit upside for income, sure you can make 10 dollars now but if the stock appreciated 100 dollars, you lost the plot.
Second is NAV erosion. When the underlying declines in value, the fund's NAV can decline as well. Although option premiums can provide some cushion, they don't eliminate the downside. If the underlying continues to fall, the income generated from the options may not be enough to offset the loss.
Then you have yieldmax, who dial all of this up to 11 by increasing your concentration. Someone sees a mega yield, but don't understand that something like MSTY is highly concentrated in well, MSTR. Speaking of, look at the 1 year chart for it.

I’m only down 50% on MSTY. Only took me a year too. But man. Those dividends (being sarcastic on the dividend comment)