I am not familiar with the product (bc they're dumb, no disrespect), but I assume that the non crypto stuff is simply overwrites on long shares. So a CC or put write doesn't have (path dependent) vol-risk as there is no req on the optionality. The yield stuff is either CC or overwritten. As you go to 1x2 (shares x calls) you're in a synthetic short straddle. It's fungible. Any ratio weighted to shares would be eventually converge to a CC, again. So they're dumb. Anything boosting returns by poaching NAV should be illegal, IMO. You can replicate any of the the things they are doing, save for the NAV scam.
The video on OP is an interview with the fund managers of msty, the people doing the actual trades The "return on capital" stuff was also discussed, and yearly statements breakdown the actual income, but monthly distribution are taxed according to the classification income vs ROC (YieldMax) msty do not own a single share of mstr, they do everything with synthetics, with some upside participation (explained on the video?) The video is long but I watch it in 1.75x speed since I do not have to slow down for the detailed options stuff because goes over my head, tbh The msty holdings: https://www.yieldmaxetfs.com/our-etfs/msty/
Unfortunately for you as the original ETF is dwindling away, so does the dividend. So you may collect 124% just on a much smaller and smaller stock price. ight now it looks like that all such ETFs are going towards zero.
I know, that is why I called them a practical ponzi not a straight up ponzi. So the underlying keeps diverging toward zero (because of NAV decay) thus the payout also has to come down. In % you may still be getting a high number, but in absolute numbers it is going to be less and less.
Is that your opinion or is that based on facts? Feb 22, 2024 msty opened at $20.38, today, msty is trading at $22.91 May 15,2025 If you put $100k when it started, you would have received an accumulated $130k in dividends, and your $100k in msty shares are worth over $110k
I haven't watched but there is no advantage to trading the synthetics in MSTR. The July fwd is trading to rates. Say you were just bullish on *MSTY* and somehow you thought their div or rates would fall (IKR?) and their benchmark was SOFR or FF or something and you wanted long MSTY? You would buy the synthetic out to you expected holding period and you'd get it at a discount to cash roughly equal to the div less rates, follow? MSTY cash is 22.93. MSTY July *22* synthetic is -0.85 mid. You can buy the July synthetic shares at 21.15 mid, but you don't participate in any divs unless assigned on your put (not going to happen). So why not just do that? No variance to the div and rates prob not going to rise? Lock in the reported div now. There are inherent rate bets in the synthetic. Not in this example, per se, but generally. A decrease in the div (w/o shares crushed), rates, etc. Part of the reason that it's an IQ test to buy MSTY/BTC. Again, they are fucking poaching NAV which is another MASSIVE con here. But why are the YM ppl in synthetics in MSTR when it trades essentially at an arb to short term funding? Either they are not really replicating D1, they are poaching NAV, or doing some other nefarious shit that makes no financial sense.
I'm sorry I am unable to follow your explanation, but I was listening to a Twitter spaces a few nights ago, there was a fund manager that criticized msty fund managers about using synthetics, putting cash into Treasuries There is no need for this as mstr has very big daily trading volumes The dude said msty fund managers are paying an enormous amount of fees to the "street" and they are getting perks such as VIP access, clubs, private jets, short of calling them kickbacks In the video, they named some of their market makers competitive pricing between the players or they go out and do in local markets, fwiw
Just check the ETF prices. So their very best ETF is up a huge 10%, yeeehhhaaa! Edit: MSTY is also down in the last 12 months, 32 to 23. Meanwhile: TSLY: 15 to 9 CONY: 22 to 8 NVDY: 26 to 17 YMAX: 20 to 14 If you just simply invested in the underlying, you would be up multiple of the dividens. Case study, TSLA is up from 175 to 350 way more than the 15 to 21 return with the dividens on TSLY.