Latest news with #YieldMaxMSTROptionIncomeStrategyETF
Yahoo
2 days ago
- Business
- Yahoo
Strategy (MSTR) Is Interesting, but MSTY Is Better
You can buy Strategy stock directly or invest in an ETF that offers exposure to Strategy stock via options. The YieldMax MSTR Option Income Strategy ETF is designed for investors who are seeking high monthly income and regular cash flow. While this ETF is tied to Strategy stock, it has a different risk-reward profile due to the use of options. 10 stocks we like better than Tidal Trust II - YieldMax Mstr Option Income Strategy ETF › During the past five years, Strategy (NASDAQ: MSTR) has been one of the top-performing stocks in the world. It's up a head-spinning 3,200% during that period. And it shows no signs of letting up anytime soon. Year to date, Strategy (formerly known as MicroStrategy) is up 32%. But here's the thing: If you want regular cash flow and a steady stream of high monthly income, those capital gains aren't going to help you. You will only generate income if you sell the stock. As an alternative, you could invest in the YieldMax MSTR Option Income Strategy ETF (NYSEMKT: MSTY). This exchange-traded fund (ETF) generates monthly income for investors using options tied to Strategy stock. There's a lot to unpack, so let's take a closer look. The YieldMax MSTR Option Income Strategy ETF is an investment product that offers extreme exposure to Strategy stock. You can think of it as a "1-stock ETF," except that you don't actually own the underlying stock in the ETF. Instead, the ETF generates income by selling (i.e., "writing") call options on Strategy stock. This income for the investor is measured in terms of distribution rate. This refers to the income generated by the ETF as a percentage of its net asset value. The higher the distribution rate, the more money you receive. Right now, the distribution rate of MSTY is 93%. That's much higher than the distribution rates of other popular YieldMax ETFs. For example, the distribution rate of the YieldMax ETF for Tesla stock is 59%. The distribution rate of the YieldMax ETF for Apple stock is 32%. This high distribution rate is the result of a nifty feat of financial alchemy that uses derivatives (i.e., options) to transform a non-yield-bearing asset (MSTR stock) into a yield-bearing asset (the MSTY ETF). In short, you're able to generate a yield from Strategy stock, even though it pays no dividends to investors. That's Wall Street magic. As you might have guessed by now, there are some trade-offs involved. After all, on Wall Street, there is no such thing as a free lunch. So, in exchange for giving up some of the high upside potential of MSTR stock, you get a steady monthly income. The strategy is designed to work best when the price of MSTR is not expected to soar dramatically in value. This is very important to keep in mind, since Strategy is highly leveraged to the price of Bitcoin. If the price of Bitcoin surges in value dramatically, then you could be losing out on some of the potential upside of holding MSTR stock. Yes, you will still be generating income and earning a regular yield via the ETF, but it might leave you feeling a bit disappointed, since you do not own shares in the company. On the other hand, if the price of MSTR does not surge in value or falls only slightly, you should come out ahead, because people will still be buying call options on that stock. Thus, you will still be earning income. As YieldMax advises potential investors, this ETF product is best for those who are neutral to moderately bullish on Strategy, and who want monthly income and regular cash flow. It should be used for diversification purposes, and should not compromise a significant portion of your overall portfolio. Before investing in the YieldMax MSTR Option Income Strategy ETF, I would highly advise becoming familiar with call options, just to understand how they behave under different scenarios. At the very least, you should familiarize yourself with basic option payout charts. This YieldMax ETF employs a covered call strategy, meaning any call option is written against a stock that is already owned. Technically, this YieldMax ETF employs a "synthetic" covered call strategy, since it uses a combination of different options to simulate a covered call position, without actually owning the underlying stock. As an investor, all of this happens behind the scenes, and you don't need to know anything about options for the strategy to work. So, even though this might sound incredibly complex, YieldMax does all the heavy lifting for you. At the end of the day, if you're hunting for some extra monthly income and are excited about generating some yield from an investment that normally does not offer any, then the YieldMax MSTR Option Income Strategy ETF could be worth a closer look. Before you buy stock in Tidal Trust II - YieldMax Mstr Option Income Strategy ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Tidal Trust II - YieldMax Mstr Option Income Strategy ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $939,655!* Now, it's worth noting Stock Advisor's total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Apple, Bitcoin, and Tesla. The Motley Fool has a disclosure policy. Strategy (MSTR) Is Interesting, but MSTY Is Better was originally published by The Motley Fool
Yahoo
06-06-2025
- Business
- Yahoo
BIL Gains $787M in Assets as Trump/Musk Feud Rattles Markets
The SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) attracted $786.7 million, boosting its assets under management to $44.2 billion, according to data provided by FactSet. The inflows came as the S&P 500 fell 0.5% and Tesla plunged more than 14% amid an escalating feud between President Donald Trump and CEO Elon Musk. The SPDR S&P 500 ETF Trust (SPY) pulled in $715.2 million, while the YieldMax MSTR Option Income Strategy ETF (MSTY) gained $385.9 million. The iShares 20+ Year Treasury Bond ETF (TLT) attracted around $311 million, and the iShares Bitcoin Trust ETF (IBIT) collected nearly $284 million. The Invesco QQQ Trust (QQQ) saw outflows of $978.4 million despite tech strength earlier in the week. The iShares S&P 500 Growth ETF (IVW) lost $479.2 million, while the Direxion Daily Semiconductor Bull 3x Shares (SOXL) experienced outflows of $352.5 million. The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) shed $280.4 million. U.S. fixed-income ETFs collected $2.5 billion in net inflows, while U.S. equity ETFs gained $887.7 million. International equity ETFs attracted $628.9 million, and international fixed-income ETFs pulled in $373 million. Overall, ETFs gained $4.3 billion as investors moved into short-term Treasurys following Trump's phone call with Chinese President Xi Jinping and concerns about softening labor market data. Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change BIL SPDR Bloomberg 1-3 Month T-Bill ETF 786.56 44,224.99 1.78% SPY SPDR S&P 500 ETF Trust 715.24 609,313.91 0.12% MSTY YieldMax MSTR Option Income Strategy ETF 385.91 4,913.91 7.85% DFUV Dimensional US Marketwide Value ETF 340.26 11,455.92 2.97% TLT iShares 20+ Year Treasury Bond ETF 310.97 49,832.98 0.62% HYG iShares iBoxx $ High Yield Corporate Bond ETF 293.27 16,874.96 1.74% IBIT iShares Bitcoin Trust ETF 283.96 69,597.75 0.41% IVV iShares Core S&P 500 ETF 209.62 587,748.68 0.04% AGG iShares Core U.S. Aggregate Bond ETF 205.75 125,565.79 0.16% VOO Vanguard S&P 500 ETF 196.41 664,143.40 0.03% Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change QQQ Invesco QQQ Trust Series I -978.37 338,382.11 -0.29% IVW iShares S&P 500 Growth ETF -479.20 56,940.57 -0.84% SOXL Direxion Daily Semiconductor Bull 3x Shares -352.52 12,201.73 -2.89% LQD iShares iBoxx $ Investment Grade Corporate Bond ETF -280.39 30,293.38 -0.93% SPXL Direxion Daily S&P 500 Bull 3x Shares -266.03 5,093.78 -5.22% FBTC Fidelity Wise Origin Bitcoin Fund -197.04 20,693.71 -0.95% COWZ Pacer US Cash Cows 100 ETF -181.21 20,822.91 -0.87% IWM iShares Russell 2000 ETF -166.87 61,875.92 -0.27% VTV Vanguard Value ETF -136.47 133,272.30 -0.10% FTEC Fidelity MSCI Information Technology Index ETF -120.57 13,123.17 -0.92% Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives -25.30 10,002.89 -0.25% Asset Allocation 54.62 25,036.07 0.22% Commodities ETFs 224.29 216,080.00 0.10% Currency 111.63 142,868.21 0.08% International Equity 628.93 1,809,268.18 0.03% International Fixed Income 373.03 292,908.39 0.13% Inverse 194.30 14,580.51 1.33% Leveraged -625.90 122,944.73 -0.51% US Equity 887.70 6,853,064.03 0.01% US Fixed Income 2,478.80 1,668,177.70 0.15% Total: 4,302.12 11,154,930.71 0.04% Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data are believed to be accurate; however, transient market data are often subject to subsequent revision and correction by the | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-04-2025
- Business
- Yahoo
Dividend Investor Who Earned $18,000 a Month Despite 'Bloody' Selloff Shares His Top 6 Stock Picks
Defensive equities and safe-haven assets are gaining attention as recession warnings grow louder. JPMorgan Chase (NYSE:JPM) now believes there's a 60% chance that the world and US economy will face recession, up from its prior estimate of 40%. Dividend stocks are gaining appeal given their strong track record during market downturns. Don't Miss: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are using retirement income calculators to check if they're on pace — Last month, an investor shared his detailed income report and progress on Reddit, and talked about the impact of the recent market volatility on his portfolio. The portfolio screenshots shared by the investor showed his dividend income in March stood at roughly $18,000, compared with $24,000 for February and $21,360 for January. The investor said he was aiming to reach $30,000 in monthly dividend income but was brought down to the "$10K club" due to the "bloody" March selloff. "Not sure when the recession of US economy is coming but pretty sure there is a recession in my monthly dividend income. It only takes one month to destroy a fully bull market, how amazing is that?" he said. The S&P 500 and the Nasdaq saw their biggest monthly percentage declines in March since December 2022 amid market uncertainty due to President Donald Trump's planned tariffs. Trending: It's no wonder Jeff Bezos holds over $250 million in art — The investor shared a week-by-week breakdown of his dividend income and portfolio holdings for March. Let's take a look at some of his key holdings that contributed to his overall income during the month. YieldMax COIN Option Income Strategy ETF YieldMax COIN Option Income Strategy ETF (NYSE:CONY) was among the top holdings of the investor who made about $18,000 in dividends in March. He had 5,500 shares of the fund in his portfolio in the first week of the month. The fund makes money by selling call options on Coinbase Global (NASDAQ:COIN). CONY has lost about 38% in value in 2025 through April 25. YieldMax MSTR Option Income Strategy ETF The YieldMax MSTR Option Income Strategy ETF (NYSE:MSTY) generates income by selling call options on MicroStrategy (NASDAQ:MSTR) stock. It's been a wild ride for MSTY investors this year amid a decline in Bitcoin price. The fund is down about 13% through April 25. The investor had 4,000 shares of the fund in his portfolio during the second week of March. YieldMax NVDA Option Income Strategy ETF YieldMax NVDA Option Income Strategy ETF (NYSE:NVDY) makes money by selling call options on Nvidia (NASDAQ:NVDA). The investor had 3,820 shares of the fund. NVDY fell 40% this year amid a decline in Nvidia shares, which are down 20% so far this TSLA Option Income Strategy ETF YieldMax TSLA Option Income Strategy ETF (NYSE:TSLY) is a popular dividend ETF for income investors seeking high yields. With a distribution rate of 104%, TSLY generates income by selling call options on Tesla (NASDAQ:TSLA) shares. TSLY is down 38% this year. The investor had 1,842 TSLY shares in his portfolio. YieldMax Universe Fund of Option Income ETFs The YieldMax Universe Fund of Option Income ETFs (NYSE:YMAX) has multiple ETFs in its portfolio that implement options strategies to generate income. The investor had about 855 shares of YMAX in his portfolio as of the last week of March. Roundhill Innov-100 0DTE Covered Call ETF Roundhill Innov-100 0DTE Covered Call ETF (CBOE: QDTE) generates income via a zero-day-to-expiration options strategy on the Roundhill Innovate Index. This strategy involves selling call options that expire the same day. Read Next:Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Dividend Investor Who Earned $18,000 a Month Despite 'Bloody' Selloff Shares His Top 6 Stock Picks originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
16-04-2025
- Business
- Yahoo
MSTR vs. MSTY: Growth or Income? A 12-Month Showdown
Disclaimer: The analyst who wrote this piece owns shares of Strategy (MSTR). From April 2024 to April 2025, investors in Strategy (MSTR) and the YieldMax MSTR Option Income Strategy ETF (MSTY) followed two distinctly different investment paths — one seeking capital appreciation through bitcoin (BTC) exposure, the other pursuing monthly income via options-based strategies. Both are linked to the performance of MSTR, but their outcomes and structures diverged significantly. Strategy, listed on the Nasdaq, has evolved from an enterprise software company into a de facto bitcoin proxy. As of April 15, the company holds 531,644 BTC, making its stock highly sensitive to bitcoin's price movements. Since adopting its bitcoin treasury strategy in August 2020, MSTR shares have surged over 2,500%. However, this growth comes with volatility: Currently, the stock has an implied volatility of 87%, and a 30-day historic volatility of 102%. MSTR is currently 43% below its all-time high set in November 2024, reflecting the sharp swings typical of a bitcoin-correlated asset. The stock pays no dividend. In contrast, MSTY, launched in April 2024, is an income-focused ETF that does not hold MSTR shares directly. MSTY's portfolio consists primarily of U.S. Treasury bills, cash, and short-term call options on MSTR, allowing it to synthetically replicate exposure without directly owning the stock. It employs a synthetic covered call strategy, selling options on MSTR to generate monthly income. This strategy limits upside participation but delivers consistent cash flow, appealing to investors seeking regular distributions. From April 4, 2024 to April 9, 2025, a $1,000 investment in each product produced the following results: MSTR: Fueled by bitcoin's strong 2024 rally, the investment grew to $1,895, generating a +89% total return. MSTY: With 13 monthly distributions totaling $36.53 (ranging from $4.13 in April 2024 to $1.33 in April 2025) reinvested on each ex-dividend date, the investment reached $1,591, a +59% total return. However, MSTY declined 45% over the year due to its full downside exposure to MSTR's price movements, without benefiting fully from MSTR's rallies because of its call-writing strategy. Additionally, consistent high monthly distributions — partly classified as return of capital — reduced the fund's net asset value over time, further weighing on its share price. MSTY exhibited significant volatility in its own right, often trading at premiums or discounts to net asset value (NAV), introducing additional price risk. The premium/discount activity in MSTY reflects both investor demand and underlying volatility in MSTR. Early high volatility supported strong option income and trading premiums, but as volatility eased in 2025, premiums narrowed and discounts appeared more often. However, a renewed bitcoin rally and rising volatility in MSTR could reverse this trend, lifting option income, distributions, and investor demand. While both products are linked to MSTR's price action, they serve distinct purposes: MSTR offers high-risk growth potential tied to bitcoin, while MSTY delivers yield through a derivatives-based income strategy with inherent structural limitations. Unlike traditional income strategies that focus on low-volatility, stable-yield investments like broad index ETFs or dividend stocks. MSTY is geared toward retail investors seeking exceptionally high income — but who are also willing to accept significantly higher risk and volatility.
Yahoo
03-03-2025
- Business
- Yahoo
48-Year-Old With $1 Million Wants Dividend Income To Retire Early–'Should I Bet Big On MSTY's $2/Share Payout Or Stick With SCHD?'
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Dividend investing is a popular investing approach for those wanting passive income, especially as they approach retirement. However, not all dividend-paying stocks or funds are the same. Some, like Schwab U.S. Dividend Equity ETF (NYSE:SCHD), offer stability and long-term growth through a diversified portfolio of financially stable companies, while others, such as YieldMax MSTR Option Income Strategy ETF (NYSE:MSTY), promise high yields but come with considerable risks. For those aiming to achieve financial independence or retire early, striking the right balance between risk and reward is imperative. Don't Miss: If there was a new fund backed by Jeff Bezos offering a ? Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Enter a 48-year-old investor with a clear vision for his future. He and his wife have assiduously contributed to their 401(k) accounts, accumulating nearly $1 million in savings. But the Redditor has bigger dreams: he wants to yield enough dividend income to retire early and chase his passion for video game design. 'I want to put extra money into dividends and maybe set my daughter up for life, or at least give her some flexibility. I have weekly investments into SCHD, but not much while I finish paying off my last credit card. I know SCHD is safe and good for the long term, but I also dream of being able to have enough in dividends monthly to quit and pursue my passion, video game design,' he wrote in a post on Reddit. Trending: Coinbase's latest promo gets you up to $200 in crypto (Seriously!) — He mentions SCHD's safety and long-term potential but is intrigued by the high monthly payouts offered by MSTY, which promises a $2 per share dividend. He's considering whether to allocate more funds to MSTY or stick with the safer SCHD, so he took to Reddit to seek advice. Let's dive into the suggestions in the comments left by the r/Dividends members. Prioritize Safety and Diversification Over High-Yield Risks Many Redditors emphasized the importance of sticking with SCHD because of the stability and diversification it offers. 'When you buy a share in SCHD, you're buying a tiny slice of ownership in 100 U.S. companies which have been selected for their financial strength, past and future earnings, and a 10-year history of giving back a piece of those earnings to their owners in the form of dividends. They are not going anywhere any time soon regardless of how much the daily buyers are willing to pay for those businesses,' a comment reads. Trending: This Jeff Bezos-backed startup will allow you to . A Reddit user shared his opinion on MSTY, saying that the stock won't be able to sustain these 100% dividends for long. 'There's no free lunch and beware of anything that seems too good to be true. MSTY is very unlikely to continue to offer these 100% dividend returns for long,' he said. One more Redditor advised against buying MSTY shares, but if the investor still wants to do it, he suggested pairing it with another ETF to hedge. 'SCHD. Forget about MSTY unless you pair it with [T-REX 2X Inverse MSTR Daily Target ETF (NYSE: MSTZ)] to hedge,' he wrote. 'Instead of MSTY, better [JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ)],' another comment on Paying Off Debt and Learning About Investing Before Aggressively Buying A recurring theme in the comments was how important paying off high-interest debt is before ramping up investments. 'Do a 100% to your credit card. You won't beat that return with these funds. Credit card debt is savage. Once clear, SCHD. Forget MSTY,' a Redditor advised. One Reddit member of the r/Dividends community suggested the poster shouldn't think of investing in MSTY if he isn't familiar with income investing. 'If you don't know how to income invest (deal with decay, shift, collar, or options), I wouldn't start with YieldMax. They can make a lot of money if you are used to that investing i.e. closed-end funds, high-yield, waterfall strategy. But you can lose it fast and not know how you lost it,' he said. Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. to decide which one is right for you. . With over $1 million in dividends paid out last quarter and a growing selection of properties across various markets, Arrived offers an attractive alternative for investors seeking to build a diversified real estate portfolio. In October 2024, Arrived sold The Centennial, achieving a total return of 34.7% (11.2% average annual returns) for investors. Arrived aims to continue delivering similar value across our portfolio through careful market selection, attentive property management, and thoughtful timing in sales. Looking for fractional real estate investment opportunities? The features the latest offerings. This article 48-Year-Old With $1 Million Wants Dividend Income To Retire Early–'Should I Bet Big On MSTY's $2/Share Payout Or Stick With SCHD?' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
