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I started going down a rabbit hole with the YieldMax ETFs, and while I am not necessarily fond of the synthetic strategy they employ, it's certainly interesting. When I saw that the YieldMax MSTR Option Income Strategy ETF (
MSTY: The MicroStrategy YieldMax ETF Has A 140% Yield And Lives Up To The Hype
Summary
- YieldMax MSTR Option Income Strategy ETF's synthetic strategy around MSTR delivers extraordinary income, with a TTM yield of 140%, making it a net positive investment despite share price volatility.
- The ETF's unique approach leverages MSTR's Bitcoin exposure and options premiums, but investors must understand the risks and mechanics before diving in.
- MSTY's total return, factoring in distributions, is competitive with BTC and offers a compelling case for adventurous income-focused investors seeking indirect crypto exposure.
- While not a traditional capital appreciation play, MSTY's real income potential and innovative strategy have convinced me to consider starting a small position.
I am focused on growth and dividend income. My personal strategy revolves around setting myself up for an easy retirement by creating a portfolio which focuses on compounding dividend income and growth. Dividends are an intricate part of my strategy as I have structured my portfolio to have monthly dividend income which grows through dividend reinvestment and yearly increases. Feel free to reach out to me on Seeking Alpha
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.
MSTY has been a net positive investment over the past year and since inception while currently having a 140% yield based on the current share price
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