Crypto - MSTY

robertc400

robertc400

Well-Known Member
Silver Stacker
Hi Fellow Stackers,
I am a newbie when it comes to crypto.
Only recently bought a little XRP and Solana.
Can anyone explain this MSTY concept - a dividend every month - Wow.
How does it work?
Any downfalls?
If the stock drops 50% but you receive a 100% dividend over the timeframe of a year you are still in front.
Is there a catch?
Any help would be great.
 
I have no idea personally but here is ChatGPT to help us out;

What is the MSTY Concept in Cryptocurrency?

The YieldMax™ MSTR Option Income Strategy ETF (MSTY) is an actively managed exchange-traded fund (ETF) designed to generate monthly income by employing a covered call strategy on MicroStrategy Incorporated (MSTR) stock. This fund is particularly relevant due to MicroStrategy’s substantial holdings in Bitcoin.

Key Features of MSTY
  1. Income Generation
    MSTY generates monthly income by selling (writing) call options on MSTR stock.

  2. Exposure to MicroStrategy
    Investors gain indirect exposure to the performance of MicroStrategy (MSTR), a company with significant Bitcoin holdings.

  3. Capped Upside Potential
    • The covered call strategy limits the potential gains if MSTR’s stock price increases significantly.
    • On the downside, MSTY remains exposed to potential losses if MSTR’s stock price declines.
Considerations for Investors
  • Risk Factors
    • Single Issuer Risk: MSTY focuses solely on MSTR, increasing risk.
    • Capped Gains: The strategy limits profits from MSTR price surges.
    • Downside Exposure: Losses remain if MSTR’s stock price falls.
  • Not a Direct Investment in Bitcoin
    While MicroStrategy holds substantial Bitcoin assets, MSTY itself does not directly invest in Bitcoin or other digital assets.
Who Should Consider MSTY?
MSTY may appeal to income-focused investors who want exposure to MicroStrategy and its Bitcoin-related potential, but it is not suitable for those looking for uncapped upside or direct cryptocurrency investments.

Sources:
YieldMax™ Official Page
Barron’s Article
GlobeNewswire Article
Click to expand...
 
Yea if you reinvest 100% imagine the gains over a 10year period.
$10K goes to 20 and then 40 , then 80 and so on. The mind boggles if you start with 50 or 100k
 
robertc400 said:
^^^ Gee I hope not.
Click to expand...

Highly unlikely during a BTC bull run, particularly over the time period he presents.

I think going forward that the plan will be for MSTR to eliminate it's shorter term debt obligations, this should go a long way in shielding the share price from a collapse when a BTC bear market eventuates.
 
1Tim58 said:
I have no idea personally but here is ChatGPT to help us out;
Click to expand...
Deepseek now ;) China has thrown together their Ai with cheap chips and rubber bands haha i hope it drops Nvidia like a stone its pumped to hell if china can reproduce similiar aspects at lower cost so be it...we need competition and fair pricing, we need it here too our monopolies are ruining us
 
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