The Yieldmax MSTR Option Income Strategy ETF (MSTY) offers a headline 100%+ yield, but this is largely unsustainable and primarily funded by return of capital. MSTY consistently underperforms MSTR during rallies, while only marginally mitigating downside, making it unattractive compared to direct MSTR exposure. Recent dividend reductions and high return of capital indicate the payout is shrinking and not supported by true income generation.
I construct covered call ETF portfolios using a three-bucket approach: safe, moderate, and ultra-high yield for balanced income and risk. Portfolio weightings target 50% in 10–25% yield ETFs, 30% in 25–50% yield, and 20% in 50%+ yield, with regular rebalancing. Proxies like IWMI (safe), BLOX (moderate), and MSTY (ultra-high yield) illustrate how to allocate and manage risk across buckets.
It's tempting to think about throwing in the towel on an ETF that has so much negative momentum riding behind it.
YieldMax MSTR Option Income Strategy ETF offers an extremely high yield but carries significant risk and aggressive volatility due to its options-based strategy. MSTY's performance is closely tied to MicroStrategy shares, with a 1% drop in MSTR causing a 1.41% decline in MSTY, amplifying downside risk. Distributions are high but declining, driven by option premium income and capital return, which erodes the fund's net asset value over time.
YieldMax MSTR Option Income ETF has suffered significant declines alongside cryptocurrencies and Strategy Inc. MSTY's dividends have been sharply reduced recently, reflecting falling net asset value. Despite MSTY's high current yield, further dividend cuts are likely if NAV continues to drop.
Passive income seekers will be glad to know that you can use certain exchange traded funds (ETFs) to get higher yields than you would typically find with individual stocks.
The word is spreading like wildfire. Some of YieldMax's exchange traded funds (ETFs) offer huge annual distribution yields, and legions of passive income investors are loading up on these intriguing funds.
For as long as many people can remember, MSTY (NYSEARCA:MSTY) has been at the top of the YieldMaxETFs subreddit as the go-to for taking advantage of dividend yield.
There is no question that once you hit the “purchase” button whenever you make an investment in the stock market, it's immediately a gamble and a hope that the future will drive things in the right direction.
When it comes to the YieldMax movement right now, which is arguably as hot as it has ever been, there is no name bigger than that of MSTY.
What does the future hold for the YieldMax MSTR Option Income Strategy ETF (NYSEARCA:MSTY).
By deploying sophisticated options-trading strategies, the YieldMax MSTR Option Income Strategy ETF (NYSEARCA:MSTY) has produced substantial income from Microstrategy (NASDAQ:MSTR) stock.