I like that you break down your calculations but... It's far too common in the trading world to validate trades using time and price, when in reality everything is in constant flux. Price and time are nonsensical parameters in my opinion. Case in point, I entered @21.5, exit @22. A day later BTC/MSTR spike, MSTY now@23.10 and climbing. Had the trend followed the last 6 months, MSTY could very well have been (still can) @21 by 07/30 div. The 5 days 10% rise is only an unexpected happy ending in latex when it shoulda been flat or down. Thankfully I managed to ride the market with other stocks to even out the 10% gain and get back in MSTY before div date.
That depends on the div. From what I read it's going to be between 0.97 and 1.03 so div is adjusting down to lower share price instead of increasing to compensate.
It has nothing to do with "adjusting" to share price. You've lost the plot. Shares in MSTR are up 50% YTD.
And an earlier post under a previous nick. The payout is -corr to vol. They are an overwrite and bear reversal shop. The bear reversal is a sunk cost when it rallies and vols drop which impacts payout and you fools are lining up to take a 50% haircut in div-payout. I dumped my crypto div-payers last month. https://elitetrader.com/et/threads/msty-thread-yieldmax-etf-product.384629/page-34#post-6151607
It’s all about volatility — not rocket science. Funny how all these high-yield dividend ETFs started popping up right after I released my backtested spreadsheet a few years ago. Coincidence? You can absolutely replicate the same returns manually — I pulled a 6.21% return in June so annualized that's 74% yield on cost not even risk lol. But it only works if you're willing to hold shares and carry them at a loss. Lately, volatility in MSTR has cooled off, which means MSTY could shift from superhero-level payouts to just being another solid high-yield income play. I’ve started scaling back a bit — the rising margin requirement cuts into the returns per $ of capital. Ideally I would like to see MSTY flat in price with divs between .75 and 2.50 indefinitely.