NVDY: Living Up To The Hype And I Started A Position

Summary

• YieldMax NVDA Option Income Strategy ETF offers high monthly income by selling call options on NVDA, generating a 158% yield since inception despite a -17.4% share price decline.
• While NVDY doesn't match NVDA's capital appreciation, it eliminates the hassle of managing covered calls and provides reliable income for income-focused investors.
• I turned bullish on NVDY after seeing consistent distributions, starting a position to generate income without the risks and work of covered call rolling.
• NVDY isn't a replacement for NVDA, but it's an effective income tool; I plan to add more if distributions remain strong and NVDA continues its growth.

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The YieldMax ETFs are gaining a lot of notoriety for their massive distribution yields. The YieldMax NVDA Option Income Strategy (NYSEARCA:NVDY) now has $1.74 billion in assets under management (AUM) and a large draw is the $15.48, which has been paid

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVDY, NVDA 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.

Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.