The YieldMax MSTR Option Income Strategy ETF saw a 72.7% total loss over one year, eroding its high distribution yield.
The YieldMax MSTR Option Income Strategy ETF (MSTY) delivered a 72.7% total loss over the past year, including all distributions, despite advertising an 85% yield. The fund’s share price collapsed from near $40 to $12.83, a 68.39% decline, as its covered call strategy failed to offset losses in MicroStrategy (MSTR) stock.
MSTY’s structure involved selling short-dated calls against a synthetic long position in MSTR, distributing option premiums as weekly cash. While the approach initially generated high payouts—up to $4.4213 per share—it absorbed the full 75% drop in MSTR over the same period, leaving investors with steep losses.
Alternative funds in the same category, such as QDTE, posted a 27% gain in share price over the same period, highlighting the risks of MSTY’s strategy.