CONY: Yield Is High But Risk Is Higher

Yavuz Akbay
271 Followers
(12min)

Summary

  • YieldMax COIN Option Income Strategy ETF offers high dividends but is risky with an annual expected return of -16% and a potential 70% YoY value loss.
  • CONY uses a synthetic covered call strategy, generating income through call options on COIN, but doesn't directly invest in Coinbase shares.
  • CONY's performance is significantly lower than COIN's, with a 0.39 correlation during bull runs, making it less suitable for capital protection.
  • Suitable for income-focused investors and volatility harvesters, but not for long-term holders or those seeking capital protection due to high risks and market uncertainties.
Binance, OKX, MEXC, Houbi, Coinbase, Bitpie, Kraken, ZB, Bitstamp. Cryptocurrency exchange apps

Robert Way

YieldMax COIN Option Income Strategy ETF (NYSEARCA:CONY) is an ETF that provides exposure to COIN by offering an extraordinary dividend yield. I consider it too risky with its annual expected return of -16% with its value loss of up to 70% YoY. In this

This article was written by

271 Followers
Yavuz Akbay is quantitative analyst with over 5 years of experience in interpreting complex financial data, developing complex mathematical models and modeling and forecasting. Utilizes machine learning algorithms to enhance financial analysis and provide accurate and timely recommendations. Yavuz holds a Bachelor of Business Administration and now continuing Master's of Economics.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

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