Yield max

This is from their website.

"The funds do not invest directly in the underlying stock or ETF."

"Price Participation Risk. The Fund employs an investment strategy that includes the sale of call option contracts, which limits the degree to which the Fund will participate in increases in value experienced by the underlying stock or ETF over the Call Period. This means that if the underlying stock or ETF experiences an increase in value above the strike price of the sold call options during a Call Period, the Fund will likely not experience that increase to the same extent and may significantly underperform the underlying stock or ETF over the Call Period. Additionally, because the Fund is limited in the degree to which it will participate in increases in value experienced by the underlying stock or ETF over each Call Period, but has full exposure to any decreases in value experienced by the underlying stock or ETF over the Call Period, the NAV of the Fund may decrease over any given time period."


What is the strategy behind the YieldMax™ ETFs?
Each YieldMax™ ETF employs an actively managed options-based strategy. The predominant driver of potential income for this strategy comes from the selling of short-term options.


From the FAQ it looks like mostly bonds and notes.
https://www.yieldmaxetfs.com/our-etfs/tsly/


So basically capped upside with unlimited downside risk. I think they are employing my Hulk strategy where you sell atm puts, and atm calls regardless of your NAV...a pure premium grab. I have posted back test results previously for MARA and IWM. It did prove to be a profitable strategy over the last year.

UMAX does something similar. Lol and I came up with this strategy one Sunday afternoon in my boxers...I wonder how many financial degrees it took for these funds?



Anybody holding these have any feedback?

Here is NFLX and NFLY. NFLX is up trending and NSLY is down trending.

 

garbage

 

If you need income (retirees?) they're OK but total return is better with the underlying stock.

Total Return:
NFLX ... 78.4%
NFLY ... 57.13%
***Start Sep 29, 2023

TSLA ... 83.61%
TSLY ... 30.70%
***Start Dec 30, 2022

NVDA ... 155.63%
NVDY ... 106.23%
***Start Jun 30, 2023

 

Taking on additional tail risk for lower total returns? Sounds attractive.

 

The question is what is the NFLY price derived from? Is that their net asset value?

Yeah I'm leaning towards BITO as they currently pay 1.21 per share.

Yeah as mentioned if the etf isn't going to track the underlying, then I might as well buy the underlying and pay myself a 5% yield per month instead.

 

Sorry for the snarky tone, it was ironic and aimed at Yieldmax. These ETFs are way more popular than they should be.

 

Is that factoring the monthly dividend payouts??

 

The big problems is NAV erosion no body talks about many you tubers promoting XDTE for dividend income only ,also in downmarket what will happen!

 

Because of hype of high Div but ignoring NAV erosion

 

I laugh at all the youtubers who talk options and swear by the wheel strategy, they claim it works and that you can generate constant profits. But that slight downturn in the markets and that wheel strategy literally becomes worthless.