Explain ULTY's Insane dividend, Is it real?

"The ( YieldMax Ultra Option Income Strategy ETFNYSEARCA:ULTY) has become a magnet for income-seeking investors, attracting all-comers with a headline-grabbing dividend yield that often exceeds 80% - and sometimes approaches a jaw-dropping 90%. For income-hungry investors, this exchange-traded fund's (ETF) promise of weekly payouts sounds like a golden ticket to financial freedom. But is ULTY's insane dividend yield the real deal, or a risky illusion that could burn the unwary?"

"Launched in February 2024, ULTY isn't your average ETF. Instead of tracking a broad market index or holding a diversified basket of stocks, it's an actively managed fund that plays a high-stakes options game. ULTY targets 15 to 30 volatile U.S. stocks - its targets currently include stocks like ( ( ( Righetti Computing NASDAQ:RGTI), Rocket Lab USANASDAQ:RKLB), and ApplovinNASDAQ:APP) - chosen for their wild price swings."

ULTY, launched in February 2024, is an actively managed ETF that sells covered call options on 15 to 30 volatile U.S. stocks, collecting premiums alongside dividends and U.S. Treasury income. The fund targets stocks with wide price swings, including examples such as RGTI, RKLB, and APP, and pays distributions weekly. Annualized yield currently stands at 86.73% with past-year distributions between $7.16 and $7.94 per share. An investor who bought at last year’s $11.44 share price would have seen 62.6%–68.7% in dividend returns. The yield is a market-dependent snapshot and not a fixed promise, creating sustainability and volatility-related risks.

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