YieldMax MSTR Option Income Strategy 

YieldMax can't be trusted, they're all bad. Dividends are just for show and keep decreasing.

0.4091, ⬇️-19.8%

I have tried to write this comment a few times but I ended up deleting it. I will leave it here because I see there are still over 40k people with this ETF in their watchlist. To all the people who think price will recover, that is not going to happen (or will happen in a limited manner, rather). Even if it does, upside is capped because of two reasons: First one, the option overlay strategy harvests some premium, but it is at the cost of (mostly) uncapped downside and capped upside. Sencond, and the huge trap for retail with these ETFs, dividends are not purely earned yield but they also include return of capital. This dynamic erodes de NAV. Share price slowly bleeds and then your potential upside will leave out the portion of the dividend that corresponds to the returned capital. People who expect MSTR to rise should just buy the stock. Option overlays do not generate nearly as much capital as these ETFs return. Many of these asset managers are simply preying on the retail investor. The huge dividend yield hides massive capital losses. Just check the TTM of any 2-3x leveraged short ETF, it looks awesome because decay and reverse splits are baked into the structure. This fund is not exactly the same but the illusion works in a similar way. It seemed "fine" with a favorable market but the downside exposes all those flaws. I never say much because I am not here to fight anyone who thinks these products are a great idea, suit their needs, etc. This is merely an explanation for those who are holding onto it and hoping for a reversal. The reason why MSTR is behaving the way it does would require an even larger post, which is not the goal here. On top of all the previous issues, there is also exposure to Saylor's MSTR dilution strategy. In the end people invest with emotions and not math. Feel free to read about it or ask any AI if you feel lazy about it. I wrote this trying to help people decide what to do and warn of the risks. I am not here to fight with fans of this stock and those arguing there are scenarios where this product makes sense. There are some, but certainly not many and not for extended periods of time when the underlying asset is in a downtrend. ___ To summarize, the longer the downside without any meaningful reduction in dividend payouts relative to NAV, the longer the capital base erodes, and the lower the potential appreciation will be. In a falling market, or even one trading sideways (arguably the worse because it allows for frequent distributions), every passing day is a day your upside potential diminishes. For anyone who is a non-resident alien for tax purposes, adding another 30% tax in the dividend payment makes this an unbelievably poor investment vehicle with a massive drag. The ONLY environment where this ETF will come even closer to tracking MSTR upside would be with a slow price increase or a regime where volatility expansion still yields a significant premium while stock grinds higher. It is worth noting that slow price increases usually coincide with volatility compression. So you can now judge your chances. ___ In the end real wealth is far away from material things and money. Losses are painful but I hope everyone can think of things to be grateful for. For those who lost significant amounts of money, losses are painful but no serious investor doesn't have his own share of failures. Failure is part of the path. I hope this does not sound pretentious. Seeing this trainwreck for the last few months was not easy to stomach. *** Nothing here constitutes investment advice. I hold no direct or indirect position in this ETF. I make no representation or warranty concerning its past, current, or future performance. ***

MSTY needs to be actively traded with WNTR to retain capital and increase yield over time.

People sitting with a steep loss in this ETF should not sell now. You are recommending people to turn unrealiaed losses into realized losses. Such bad investment advice.

You have understood nothing. Also, I made it clear it was not investment advice. Go back to your basement.

tax loss harvesting, sell to offset the gain if in your taxable account, I know they say keep it in tax free account, there's pros and cons of holding in both

I'm writing this with a clear conscience. Shouldn't we stop holding this ETF? Every month it's a huge loss, it would have been much better to keep the money in cash and withdraw regularly. I lost 800,000 yen without doing anything. "It will rise in the future, it will help in the future" - I held onto it blindly, but it was all wrong. It would have been better to buy an index fund. I was wrong, I kept being wrong. That's why I want you to realize it too. Don't waste your money. It hurts my heart.

Not selling unless it stops paying.

I stopped, so don't complain later.

you should always be buying the underlying stock, because the high yield never reach the same return level

I'm still holding on and the payment this week is 0.21, which is high relative to the price. Well, we can see that the weekly payments stabilize the NAV, but unfortunately, the underlying stock has dropped too much and you can't expect it to rise suddenly. If MSTR goes up by 20%, the options this ETF makes will only gain 16%, which isn't bad. So let's wait for MSTR to rise strongly and then there will be profit.

The important thing is that the number of shares remains the same, doesn't decrease. Is there a split of 1/4?

ouch first weekly payment is very very low. any thoughts

Not being certain, the first weekly payment should be higher than the estimate since it represents the accumulation of a month! We'll see tonight.

Switch to weekly dividends while reducing the dividend. As long as the principal doesn't drop, it can remain stable.