MSTY: 100% Dividend Yield Could Be Sustained Moving Forward

Nikolaos Sismanis
8.62K Followers

Summary

  • I believe MSTY's 100% dividend yield is sustainable due to BTC's high volatility, as the ETF can generate substantial option premiums from MSTR's price swings.
  • By monetizing MSTR's volatility to generate income, MSTY is appealing for income-oriented or more prudent investors seeking Bitcoin exposure.
  • MSTY can outperform MSTR in range-bound markets, moderate bullish movements, and even declining BTC markets by offsetting losses with premium income.
  • Even during a BTC surge, MSTY can outperform if MSTR's premium to NAV compresses, leading to lucrative premiums and incredible dividends.
Abstract bitcoin concept

koto_feja

Let me start by saying that I’ve recently become a Bitcoin (BTC-USD) believer. I think this is highly relevant because, let’s face it, any talk about crypto-related securities like the one we are examining today is inevitably shaped by the author’s stance

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This article was written by

8.62K Followers
Nikolaos Sismanis holds a BSc in Banking and Finance and has over five years of experience as an equities analyst. He covers a variety of growth stocks and income stocks, including identifying those with the highest expected return potential, and a solid margin of safety. He is a contributing author to the investing group Wheel of Fortune where they share actionable trading ideas across all asset-classes, sectors and industries. The goal of the service is to provide a one-stop-shop for investment and portfolio ideas, while educating the vibrant community of subscribers. Features of the service include: the Funds Macro Portfolio (only ETFs and CEFs) for less active investors, the Single Macro Portfolio (single equity focused) for more active investors, educational content, and a live chat room to openly discuss ideas with like-minded investors and The Fortune Teller. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of MSTR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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