YieldMax MSTY Returned More Than Half Your Capital in a Single Quarter and Most Holders Think It Was Income Quick Read – MSTY’s 250% headline yield is mostly return of capital, with investors who bought at $25 watching shares collapse to $17 in just three months. – MSTR fell 68%…
er the past year, dragging MSTY down 62% even after a reverse stock split, since covered calls provide no downside hedge. – MSTY works best as a 2-3% portfolio sleeve for investors who already want MSTR exposure and will reinvest payouts to slow NAV decay. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and MSTY didn’t make the cut. Grab the names FREE today
A 41-year-old investor puts $25,000 into the YieldMax MSTR Option Income Strategy ETF (NYSEARCA:MSTY) because the fund advertises a yield north of 100%. Three months later, the distributions show up on schedule, but the share price has collapsed from $25 to about $17. The checks felt like income, but they were mostly the investor’s own money handed back.
MSTY is the clearest live case study of a return-of-capital trap in the current ETF market, and the trailing 250.2% headline yield is the bait. What MSTY is built to do MSTY runs a synthetic long position on Strategy (NASDAQ:MSTR), the company formerly known as MicroStrategy, using a long call plus short put, and sells covered calls on top of it to harvest option premium. Premium gets paid out to shareholders, originally monthly, now weekly.