"The YieldMax MSTR Option Income Strategy ETF (MSTY) generates cash distributions primarily through aggressive options-trading strategies based on Microstrategy stock, with an advertised yield of 74.04%."
"MSTY's cash payouts are not traditional dividends; they come partly from U.S. Treasury bonds and significantly from synthetic covered call strategies."
The YieldMax MSTR Option Income Strategy ETF (MSTY) offers large cash payouts sourced primarily from options-trading strategies tied to Microstrategy stock. Unlike traditional dividends, these cash distributions are partly derived from U.S. Treasury bonds but mainly from aggressive synthetic covered call strategies. The ETF boasts a high advertised annual yield of 74.04%, yet its share price significantly underperforms Microstrategy stock. Investors must tread carefully due to the high-risk nature of MSTY's income-generating methods, which may result in considerable costs despite the attractive payouts.
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