Latest news with #MSTY
Yahoo
a day ago
- Business
- Yahoo
American Attorney Working Remotely From Thailand Making $60K/Month in Dividends Shares Stock Portfolio – 'Most of All I Love' Working From Beach
Dividend investing is gaining popularity this year as investors seek to protect their portfolios from market volatility amid the impact of tariffs. Dividend stocks have proved their mettle in market downturns. According to a report from S&P Global, the S&P 500 High Dividend Index outperformed the broader S&P 500 during both the dot-com bubble and the post-pandemic recession. Earlier this month, a dividend investor shared his income report and portfolio details on r/Dividends, a Reddit community with over 730,000 followers. The investor's portfolio screenshots showed his estimated dividend income for June stood at just $60,000. He earned about $52,000 on average per month with a single dividend ETF over the past five months. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to The Redditor said he currently works as a self-employed attorney and makes $600,000, with plans to retire soon. "I am a solo attorney who practices in NY but works remotely from Thailand," he said. "I love the flexibility of being able to set my own schedule and manage my own caseload. Most of all, I love the ability to write briefs from the pool or the beach!" Let's take a look at some of the key holdings of the investor. The YieldMax MSTR Option Income Strategy ETF (NYSE:MSTY) generates income by selling call options on MicroStrategy (NASDAQ:MSTR) stock. The fund is down about 21% so far this year. Trending: Here's what Americans think you need to be considered wealthy. MSTY was the biggest position of the investor, accounting for about 45% of his portfolio. He started a position in the fund about five months ago with 10,000 shares and gradually increased it to 36,838 shares. The investor said he collected about $261,400 in distributions from MSTY over the past five months with an average monthly payout of $52,000. "Of course I understand the risks associated with this type of investment vehicle and nothing lasts forever, past performance is not an indicator of future performance, and well aware of NAV erosion," he said about the fund. He plans to use MSTY's payouts to pay off the mortgage on a new apartment. "Once that is done, I'll reduce my holdings in MSTY to generate $12-14k a month to cover my monthly expenses in NY and Thailand, where I spend a lot of time in," he 16% of the total portfolio of the investor was allocated to JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ). It's a high-yield covered call ETF that distributes monthly dividend income. The ETF invests in Nasdaq companies and generates extra income by selling call options. JPMorgan Equity Premium Income ETF (NYSE:JEPI) makes money by investing in some of the most notable large-cap U.S. stocks and selling call options. Visa (NYSE:V), Mastercard (NYSE:MA), Meta Platforms (NASDAQ:META), Oracle (NYSE:ORCL) and Amazon (NASDAQ:AMZN) are among the fund's top holdings. The fund yields over 11%. Read Next:Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article American Attorney Working Remotely From Thailand Making $60K/Month in Dividends Shares Stock Portfolio – 'Most of All I Love' Working From Beach originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
11-06-2025
- Business
- Yahoo
GameStop Covered Call ETF Debuts Amid Meme Stock Resurgence
The first options-based income ETF tied to GameStop Corp. (GME) launched today, expanding the rapidly growing category of single-stock covered call funds. The Bitwise GME Option Income Strategy ETF (IGME) aims to generate high yields by writing covered calls on shares of GameStop, giving up some upside in exchange for option premium income. The fund, which charges an expense ratio of 0.98%, fell 2.1% in afternoon trading. IGME is just the second ETF tied to the meme stock, following the T-REX 2x Long GME Daily Target ETF (GMEU), a leveraged product that launched in April and has quickly grown to $17 million in assets under management. While most single-stock ETFs have focused on leveraged and inverse strategies, covered call funds have also gained significant traction, especially on volatile names with cult-like retail followings. The YieldMax suite has been particularly successful. The YieldMax TSLA Option Income Strategy ETF (TSLY) has amassed $1.2 billion in assets, while the YieldMax MSTR Option Income Strategy ETF (MSTY) now commands a massive $4.8 billion, despite launching just over a year ago. These funds sell call options to generate yield, offering investors eye-popping monthly income streams. But the strategy comes with a trade-off: capped upside and continued exposure to downside risk. If the stock surges, covered call ETFs miss out on most of the gains. If it drops, they still feel the pain, just slightly cushioned by the income. That trade-off hasn't worked out well lately. MSTY is up 109% over the past year, trailing Strategy Inc.'s (MSTR) 149% gain. TSLY has climbed only 39%, while Tesla Inc. (TSLA) jumped 94% over the same period. Still, investors continue to pile in, lured by the big yields and the simplicity of the strategy. Issuers, in turn, are capitalizing on the demand. Like IGME, the YieldMax funds charge hefty fees of around 1%. The GameStop ETF is a curious move for Bitwise, a firm best known for its crypto-focused lineup. On the surface, a fund tied to a video-game-retailer-turned-meme-stock doesn't quite fit. But there is a crypto connection. Like MicroStrategy before it—once a software firm, now essentially a Bitcoin holding company—GameStop appears to be following a similar playbook. The company recently disclosed it had purchased over $500 million worth of Bitcoin, adding another layer of volatility and intrigue. Bitwise cited the move as part of its rationale for launching IGME, saying, 'GameStop's return potential, historically high volatility, and recent adoption of bitcoin as a treasury asset make it a compelling choice for a covered call strategy.' Time will tell if IGME catches fire. For now, retail enthusiasm for GameStop—once the face of the meme-stock movement—has waned and shifted toward names like Strategy and Palantir Technologies Inc. (PLTR). But with options premiums still elevated and yield-chasing still very much alive, GameStop may yet find a second life in the ETF | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-04-2025
- Business
- Yahoo
MSTR vs. MSTY: Growth or Income? A 12-Month Showdown
Disclaimer: The analyst who wrote this piece owns shares of Strategy (MSTR). From April 2024 to April 2025, investors in Strategy (MSTR) and the YieldMax MSTR Option Income Strategy ETF (MSTY) followed two distinctly different investment paths — one seeking capital appreciation through bitcoin (BTC) exposure, the other pursuing monthly income via options-based strategies. Both are linked to the performance of MSTR, but their outcomes and structures diverged significantly. Strategy, listed on the Nasdaq, has evolved from an enterprise software company into a de facto bitcoin proxy. As of April 15, the company holds 531,644 BTC, making its stock highly sensitive to bitcoin's price movements. Since adopting its bitcoin treasury strategy in August 2020, MSTR shares have surged over 2,500%. However, this growth comes with volatility: Currently, the stock has an implied volatility of 87%, and a 30-day historic volatility of 102%. MSTR is currently 43% below its all-time high set in November 2024, reflecting the sharp swings typical of a bitcoin-correlated asset. The stock pays no dividend. In contrast, MSTY, launched in April 2024, is an income-focused ETF that does not hold MSTR shares directly. MSTY's portfolio consists primarily of U.S. Treasury bills, cash, and short-term call options on MSTR, allowing it to synthetically replicate exposure without directly owning the stock. It employs a synthetic covered call strategy, selling options on MSTR to generate monthly income. This strategy limits upside participation but delivers consistent cash flow, appealing to investors seeking regular distributions. From April 4, 2024 to April 9, 2025, a $1,000 investment in each product produced the following results: MSTR: Fueled by bitcoin's strong 2024 rally, the investment grew to $1,895, generating a +89% total return. MSTY: With 13 monthly distributions totaling $36.53 (ranging from $4.13 in April 2024 to $1.33 in April 2025) reinvested on each ex-dividend date, the investment reached $1,591, a +59% total return. However, MSTY declined 45% over the year due to its full downside exposure to MSTR's price movements, without benefiting fully from MSTR's rallies because of its call-writing strategy. Additionally, consistent high monthly distributions — partly classified as return of capital — reduced the fund's net asset value over time, further weighing on its share price. MSTY exhibited significant volatility in its own right, often trading at premiums or discounts to net asset value (NAV), introducing additional price risk. The premium/discount activity in MSTY reflects both investor demand and underlying volatility in MSTR. Early high volatility supported strong option income and trading premiums, but as volatility eased in 2025, premiums narrowed and discounts appeared more often. However, a renewed bitcoin rally and rising volatility in MSTR could reverse this trend, lifting option income, distributions, and investor demand. While both products are linked to MSTR's price action, they serve distinct purposes: MSTR offers high-risk growth potential tied to bitcoin, while MSTY delivers yield through a derivatives-based income strategy with inherent structural limitations. Unlike traditional income strategies that focus on low-volatility, stable-yield investments like broad index ETFs or dividend stocks. MSTY is geared toward retail investors seeking exceptionally high income — but who are also willing to accept significantly higher risk and volatility.
Yahoo
03-03-2025
- Business
- Yahoo
48-Year-Old With $1 Million Wants Dividend Income To Retire Early–'Should I Bet Big On MSTY's $2/Share Payout Or Stick With SCHD?'
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Dividend investing is a popular investing approach for those wanting passive income, especially as they approach retirement. However, not all dividend-paying stocks or funds are the same. Some, like Schwab U.S. Dividend Equity ETF (NYSE:SCHD), offer stability and long-term growth through a diversified portfolio of financially stable companies, while others, such as YieldMax MSTR Option Income Strategy ETF (NYSE:MSTY), promise high yields but come with considerable risks. For those aiming to achieve financial independence or retire early, striking the right balance between risk and reward is imperative. Don't Miss: If there was a new fund backed by Jeff Bezos offering a ? Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Enter a 48-year-old investor with a clear vision for his future. He and his wife have assiduously contributed to their 401(k) accounts, accumulating nearly $1 million in savings. But the Redditor has bigger dreams: he wants to yield enough dividend income to retire early and chase his passion for video game design. 'I want to put extra money into dividends and maybe set my daughter up for life, or at least give her some flexibility. I have weekly investments into SCHD, but not much while I finish paying off my last credit card. I know SCHD is safe and good for the long term, but I also dream of being able to have enough in dividends monthly to quit and pursue my passion, video game design,' he wrote in a post on Reddit. Trending: Coinbase's latest promo gets you up to $200 in crypto (Seriously!) — He mentions SCHD's safety and long-term potential but is intrigued by the high monthly payouts offered by MSTY, which promises a $2 per share dividend. He's considering whether to allocate more funds to MSTY or stick with the safer SCHD, so he took to Reddit to seek advice. Let's dive into the suggestions in the comments left by the r/Dividends members. Prioritize Safety and Diversification Over High-Yield Risks Many Redditors emphasized the importance of sticking with SCHD because of the stability and diversification it offers. 'When you buy a share in SCHD, you're buying a tiny slice of ownership in 100 U.S. companies which have been selected for their financial strength, past and future earnings, and a 10-year history of giving back a piece of those earnings to their owners in the form of dividends. They are not going anywhere any time soon regardless of how much the daily buyers are willing to pay for those businesses,' a comment reads. Trending: This Jeff Bezos-backed startup will allow you to . A Reddit user shared his opinion on MSTY, saying that the stock won't be able to sustain these 100% dividends for long. 'There's no free lunch and beware of anything that seems too good to be true. MSTY is very unlikely to continue to offer these 100% dividend returns for long,' he said. One more Redditor advised against buying MSTY shares, but if the investor still wants to do it, he suggested pairing it with another ETF to hedge. 'SCHD. Forget about MSTY unless you pair it with [T-REX 2X Inverse MSTR Daily Target ETF (NYSE: MSTZ)] to hedge,' he wrote. 'Instead of MSTY, better [JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ)],' another comment on Paying Off Debt and Learning About Investing Before Aggressively Buying A recurring theme in the comments was how important paying off high-interest debt is before ramping up investments. 'Do a 100% to your credit card. You won't beat that return with these funds. Credit card debt is savage. Once clear, SCHD. Forget MSTY,' a Redditor advised. One Reddit member of the r/Dividends community suggested the poster shouldn't think of investing in MSTY if he isn't familiar with income investing. 'If you don't know how to income invest (deal with decay, shift, collar, or options), I wouldn't start with YieldMax. They can make a lot of money if you are used to that investing i.e. closed-end funds, high-yield, waterfall strategy. But you can lose it fast and not know how you lost it,' he said. Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. to decide which one is right for you. . With over $1 million in dividends paid out last quarter and a growing selection of properties across various markets, Arrived offers an attractive alternative for investors seeking to build a diversified real estate portfolio. In October 2024, Arrived sold The Centennial, achieving a total return of 34.7% (11.2% average annual returns) for investors. Arrived aims to continue delivering similar value across our portfolio through careful market selection, attentive property management, and thoughtful timing in sales. Looking for fractional real estate investment opportunities? The features the latest offerings. This article 48-Year-Old With $1 Million Wants Dividend Income To Retire Early–'Should I Bet Big On MSTY's $2/Share Payout Or Stick With SCHD?' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
14-02-2025
- Business
- Yahoo
Dividend Investor Earning $20,000 a Month Shares His 7 High-Yield Stock Picks – 'You Just Need to Start'
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Dividend investing has long rewarded patient investors. Data shows that from 1998 to 2018, high-yield dividend stocks posted a compound annual return of 8.8%, compared with 6.6% for non-dividend companies. In May last year, someone asked income investors on Reddit to share their monthly dividend income goals. Many investors shared their current income and long-term goals, but one comment caught attention. An investor said he made about $20,000 a month in dividends and aimed to take this income to $30,000. In several comments on different posts on the social media platform, the investor advised others to start investing as soon as possible. Don't Miss: If there was a new fund backed by Jeff Bezos offering a ? Commercial real estate has historically outperformed the stock market, and "You just need to start, add where you can, re-invest divs and give it time. Consistency & patience is the key," he said. However, most of the investor's portfolio consisted of high-yield and risky covered call ETFs. Based on the information he shared publicly on Reddit, let's examine his portfolio holdings. YieldMax COIN Option Income Strategy ETF YieldMax COIN Option Income Strategy ETF (NYSE:CONY) was among the investor's largest holdings. The fund makes money by selling call options on Coinbase Global (NASDAQ:COIN). CONY is a risky investment since its upside potential is capped due to the covered call strategy, and its performance is linked to a single company operating in the volatile crypto industry. The fund has a distribution rate of 110% and pays monthly. CONY is down 42% over the past 12 months. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — YieldMax MSTR Option Income Strategy ETF The YieldMax MSTR Option Income Strategy ETF (NYSE:MSTY) generates income by selling call options on MicroStrategy (NASDAQ:MSTR) stock. Its distribution rate is about 108%. The investor seemed highly bullish on the fund and said in various social media posts that he had fully recouped his investment in MSTY. "I bought MSTY at inception and it paid off in 10 months. I use my divs to accumulate more shares and generate higher divs. If you need to create income, then join the party and disregard all the naysayers who can't wrap their little heads around new investment vehicles," he said in a comment. YieldMax NVDA Option Income Strategy ETF YieldMax NVDA Option Income Strategy ETF (NYSE:NVDY) makes money by selling call options on Nvidia (NASDAQ:NVDA). Recently, the ETF has gained popularity amid the buzz around Nvidia. The fund has a distribution rate of about 52%. NVDY suits investors who believe in Nvidia's long-term potential but want to hedge against possible declines in the chipmaker's shares. The Redditor said his investment in the fund has already paid for itself. "NVDY has turned into a nice steady payer. When I first entered it paid $2+ multiple times," he said a few days ago. The YieldMax SMCI Option Income Strategy ETF The YieldMax SMCI Option Income Strategy ETF (NYSE:SMCY) generates income by selling call options on Super Micro Computer Inc (NASDAQ:SMCI). The fund has a distribution rate of about 86%.Roundhill Small Cap 0DTE Covered Call Strategy ETF The Roundhill Small Cap 0DTE Covered Call Strategy ETF (BATS:RDTE) generates income by holding small-cap stocks and selling call options with zero expiration days. Its distribution rate is 27%. YieldMax MARA Option Income Strategy ETF The YieldMax MARA Option Income Strategy ETF (NYSE:MARO) generates monthly income by selling call options on crypto mining company MARA Holdings Inc (NASDAQ:MARA). The fund has a distribution rate of about 82%. Its value has been down 29% over the past 12 months. REX AI Equity Premium Income ETF The REX AI Equity Premium Income ETF (NASDAQ:AIPI) invests in top AI companies and generates income by selling call options on stocks. Some of the fund's top holdings include Palantir (NASDAQ:PLTR), CrowdStrike (NASDAQ:CRWD), ARM (NASDAQ:ARM), Nvidia (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Qualcomm (NASDAQ:QCOM) and Alphabet (NASDAQ:GOOG). Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. to decide which one is right for you. Lower interest rates mean some investments won't yield what they did in months past, but you don't have to lose those gains. Certain private market real estate investments are giving retail investors the opportunity to capitalize on these high-yield opportunities. , which provides access to a pool of short-term loans backed by residential real estate. The best part? Unlike other private credit funds, Looking for fractional real estate investment opportunities? The features the latest offerings. This article Dividend Investor Earning $20,000 a Month Shares His 7 High-Yield Stock Picks – 'You Just Need to Start' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
