I'm Stuck with 1700 Shares of MSTY - Should I Hold On or Cut My Losses?
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I'm Stuck with 1700 Shares of MSTY - Should I Hold On or Cut My Losses?
"In the case of one Redditor posting on r/YieldMaxETFs, there is a concern on their end that they are going to ride the MSTY ship until the very bottom. With only a relatively small number of shares, they are refusing to sell and are looking to continue DRIP investing with the returns, but they wonder if they aren't a little nutty for hanging on."
"Needless to say, they are wondering if they are crazy for hanging on to what could be a sinking ship. As an option-income fund tied to a highly volatile, crypto-sensitive underlying, there is no question that MSTY can and has already produced eye-popping distributions. Of course, to this Redditor's point, there are also some wild price swings as well as a concern of a capped upside."
"The problem is that markets don't know your cost basis, so anyone like this Redditor is asking MSTY's dividend yield to do two things: make up past losses and compound for the future. It's for this reason that having an exit strategy, regardless of what this Redditor says, is the right thing to do. I can't imagine being in a scenario like this, Redditor, where there isn't a stop-loss in place"
An investor holds about 1,700 MSTY shares with a $20.85 dollar cost average and refuses to sell while DRIP investing dividends into NBIS. MSTY operates as an option-income fund tied to a volatile, crypto-sensitive underlying and has produced large distributions alongside wild price swings and limited upside. Relying on dividend yield to erase past losses and compound future gains risks exposing capital because markets ignore individual cost basis. A clear exit plan and risk controls such as stop-loss orders are recommended to prevent indefinite holding and further potential losses. Reassessing allocation and considering alternative income vehicles can reduce concentration risk.
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