YieldMax TSLA Option Income Strategy ETF (TSLY)
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TSLY: A Better Deal Now More Than Ever Before
TSLY offers high-yield income with moderate risk by implementing a synthetic covered call strategy, balancing income generation, capital appreciation, and risk mitigation. The fund writes call options against Tesla stock and invests in U.S. Treasury Notes/Bonds, achieving very high distribution rates. TSLY provides indirect exposure to Tesla, capturing its price movements while mitigating downside risks, making it appealing for income-focused investors.
Is the TSLY ETF a better buy than TSLA stock ahead of earnings?
The YieldMax TSLA Option Income Strategy ETF (TSLY) will be in the spotlight this week after Tesla publishes its financial results. The fund has retreated by about 18% from its highest level this year and is hovering near its lowest point since December 4.
TSLY: Better To Stay Away
YieldMax TSLA Option Income Strategy ETF offers a high dividend yield but has seen significant share price deterioration since inception, making it unattractive from a risk-reward perspective. The ETF's covered call strategy caps upside potential while leaving downside uncapped, especially risky given Tesla's high valuation and volatility. TSLY's aggressive covered call approach generates high option premiums but limits price upside, making it less appealing for investors optimistic about Tesla's long-term potential.
TSLY: Why It's Better Than Tesla Stock Right Now
YieldMax TSLA Option Income Strategy ETF offers a high but inconsistent distribution rate via a covered-call strategy on Tesla, with a 0.99% expense ratio. The ETF has grown significantly in assets but lags behind Tesla stock during surges, highlighting the downside of covered-call strategies in volatile markets. Despite personal reservations about Tesla and covered-call strategies, current high option premiums and historical performance make TSLY slightly favorable over TSLA.
TSLY: Strategy Has Proven To Be Effective
YieldMax TSLA Option Income Strategy ETF offers a high dividend yield of over 92%, allowing investors to rapidly amplify income without significant upfront capital. TSLY replicates Tesla's daily price movements through call options, capping upside potential and exposing it to single stock risk and price volatility. Despite price declines, TSLY provides a positive total return, making it suitable for income-focused investors aiming to compound wealth through high distributions.
Revisiting TSLY Now That Musk Is Potentially The Efficiency Czar (Upgrade)
YieldMax TSLA Option Income Strategy ETF has historically underperformed, but recent political developments involving Elon Musk's increased influence have led me to upgrade it to a hold. Trump's election win and Musk's potential role as "Efficiency Czar" could boost Tesla's business, indirectly benefiting TSLY through increased volatility. TSLY is suitable for bullish but cautious investors seeking high income, though conservative investors should avoid single-stock covered call funds like TSLY.
TSLY vs TSLL: One is a better Tesla ETF to buy
The YieldMax TSLA Option Income Strategy ETF (TSLY) ETF jumped by 8.135% in the extended hours after Tesla published strong financial results and provided an exciting update of its business. Similarly, the closely-watched Direxion Daily TSLA Bull 2X Shares ETF (TSLL) ETF jumped by 24% to $11.18.
TSLY: A Look At The Pros And Cons Of This Option Income ETF
YieldMax TSLA Option Income Strategy ETF offers a high yield of 124% by trading options on Tesla stock, but carries risks in volatile markets. TSLY's strategy involves writing covered calls and credit call spreads on TSLA, complemented by investments in short-term U.S. Treasuries. Despite high distribution yields, TSLY has delivered a negative ROI of -14% since inception, underperforming TSLA's 13% ROI.
TSLY: How I Try To Avoid The Deadly Covered-Call Mistakes
To avoid capital loss from covered call strategy, I focus on up-trending stocks and use swap trading post ex-div date to reduce high expense impacts from funds of funds. I am increasing my TSLY positions due to Tesla's EV sales recovery in China and strong forecasts for Robotaxis, and the bullish underlying stock. NVDY remains my top holding, benefiting from AI growth despite recent tech pullbacks, while YMAG is a strong income play amid "growth scare" recovery.
TSLY Provides Investors A Significant Income Alternative
YieldMax TSLA Option Income Strategy ETF (TSLY) generates income through the purchase and sale of options on Tesla, without investing in the underlying equity. TSLY offers a high distribution rate of 74.47%, but investors face capped upside potential and full downside exposure to TSLA's share price. I recommend a HOLD rating with a 1-2% allocation in a tax-efficient portfolio to use distributions to generate cash flow.
Are TSLY and NVDY ETFs good alternatives to Tesla, Nvidia stocks?
Tesla (TSLA) and Nvidia (NVDA) stocks have done well in the past few days as American equities bounced back. Tesla has jumped by over 33% from its lowest point in August and is slowly nearing its highest point this year.
