YieldMax TSLA Option Income Strategy ETF (TSLY)
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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.
TSLY: Strategic Guide To Selling Tesla Call Options
The YieldMax TSLA Option Income Strategy ETF is unsuitable for income investors due to its inherent principal decay and declining distributions over time. The TSLY ETF can offer strategic value in specific market conditions, particularly given Tesla's low S&P 500 correlation. TSLY's performance hinges on reinvesting distributions; using them as income leads to permanent capital losses, but it will outperform in flat markets.
Why TSLY Is Not The Best Choice
YieldMax introduced covered call ETFs on single stocks like Tesla and Nvidia, offering high monthly distributions of up to 103% annually. Despite high distributions, YieldMax ETFs have lower returns than underlying stocks, with risk characteristics not significantly improved by writing call options. TSLY, the most actively traded YieldMax fund, underperformed on a risk-adjusted basis in both bull and bear markets, leading to a Strong Sell rating and better alternatives for investors.
TSLY: 50% Yield On Tesla
YieldMax TSLA Option Income Strategy ETF offers a high distribution yield tied to Tesla option premiums. TSLY uses a synthetic covered call strategy to generate income from Tesla shares. TSLY's total return since inception is -4.19%, with investors recouping 57% of their initial investment so far.
TSLY: Hidden Dangers Of Chasing High Yield
YieldMax TSLA Option Income Strategy ETF is a one-stock covered call fund with a 51.45% distribution rate, but distributions have fallen by 40% over the past year. The fund generates income through options and selling shares, leading to dwindling distributions and a risk of an eroding asset base. Investors should be aware of the risks of holding TSLY, including single stock risk, volatility risk, and unnecessary taxes from the fund returning capital.
TSLY ETF: Is this dividend paying Tesla stock a good buy?
The YieldMax TSLA Option Income Strategy ETF (TSLY) ETF has been an expensive strategy to lose money in the past few years. It has crashed by almost 50% in the past 12 months while the Tesla stock has crashed by 7.37% and the S&P 500 has jumped by over 26.57%.
