The YieldMax MSTR Option Income Strategy ETF (MSTY) generates passive income by using options-trading strategies on MicroStrategy (MSTR) stock. The ETF employs covered call or synthetic covered call approaches to extract income and pays cash distributions despite MicroStrategy not issuing dividends. MicroStrategy’s substantial Bitcoin holdings make its stock volatile, and MSTY’s strategy leverages that volatility to produce yield. The fund’s high yield and frequent payouts can be attractive, but the approach carries substantial risk that could sharply reduce returns. Investors should weigh aggressive and conservative positions and consider vetted financial-advisor guidance.
In the 2020s, passive income harvesters who happen to be bullish about cryptocurrency are raving about a game-changing exchange traded fund (ETF). It's called the YieldMax MSTR Option Income Strategy ETF (NYSEARCA:MSTY), and this fund could easily tempt you with its jaw-dropping yield and frequent cash payouts. Maybe you're prepared to take big risks with the MSTY ETF, or perhaps you'd prefer to take a more conservative approach with this fascinating fund.
The gist of the YieldMax MSTR Option Income Strategy ETF is that it uses options-trading strategies to extract passive income from Microstrategy ( NASDAQ:MSTR) stock. That's noteworthy because Microstrategy stock doesn't pay any dividends/distributions while the MSTY ETF does provide cash payouts. The world's most popular cryptocurrency, Bitcoin ( CRYPTO:BTC), often tends to be volatile. Since Microstrategy holds large quantities of Bitcoin, it makes sense that Microstrategy stock can also be volatile.
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