"MSTY generates monthly income from an options-based strategy, primarily selling call options on MSTR stock, achieving eye-catching yields with $28.69 per share paid out last year."
"The latest payout decreased to $1.47 per share, a 38% decline from May, linked to profitability challenges due to potential losses in realized and unrealized positions."
The YieldMax MSTR Option Income Strategy ETF (MSTY) has gained attention for its high dividend yields linked to MSTR, a company heavily invested in Bitcoin. While MSTY currently offers a yield of 135%, regulatory limits and market volatility pose significant risks to investor payouts. The ETF's recent dividend distribution of $1.47 per share represents a 38% decrease, reflecting profitability concerns stemming from losses. Additionally, a surge in shares outstanding complicates future dividend sustainability, prompting potential contributors to consider the growing challenges within MSTY's income generation strategy.
Read at 24/7 Wall St.
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