J Studios
YieldMax MSTR Option Income Strategy ETF (NYSEARCA:MSTY) came into existence on February 21, 2024, and has performed incredibly well since – with a 12-month trailing dividend yield of 123% and a maximum yield of an
Can MSTY's 120%+ Yield Hold Up?
Summary
- MSTY has done incredibly well with a 12-month trailing dividend yield of 123%, but I don’t believe this performance will continue in 2025.
- Of the three underlying mechanisms MSTY uses to generate income, only one is likely to work in a bear market – and even then, only in a muted fashion.
- I suspect the bull run in BTC still has some room left, and it may reach around $225,000 before entering a bear phase.
- Investors who rely on MSTY for income could consider developing their own trading system to take advantage of the upcoming bear market.
Building a high-income portfolio is about more than just buying superficially high-yielding assets, it also involves preserving and growing wealth over time. I come here as an investment analyst, not a financial advisor, with the aim of educating readers on how to do both. My focus will be on income and growth opportunities that, at a minimum, match the market's risk-return tradeoff and grow their capital base. That means not only identifying new opportunities but also warning investors about misleading ones. In addition, I’ll provide market and economic commentary when relevant, and write about my other passion: technology. All of the above will be done with basic fundamentals in mind; for the clichéd but gospel-worthy reason that if the foundation of a building isn't strong, it can't become a skyscraper.As for my credentials: I bring nearly two decades of experience as a derivatives trader, fintech researcher, startup consultant, finance writer, and small business owner - supported by a graduate degree in economics and multiple post-graduate degrees in finance and business administration.
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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