MSTY: Why It's Not As Bad As It Seems

Gary Bourgeault13.61K FollowersFollow5ShareSavePlay(11min)CommentsSummaryYieldMax MSTR Option Income Strategy ETF (MSTY) closely tracks MSTR, serving as a high-yield covered call ETF proxying Bitcoin exposure. MSTY's recent share price decline is attributed to MSTR and Bitcoin corrections, not structural NAV erosion, suggesting strong rebound potential with underlying recovery. Covered call upside caps refer to option premium limitations, not direct share price ceilings; MSTY's income and price will rise if MSTR and Bitcoin rebound. MSTY should be a small, tactical income portfolio allocation due to volatility, with risk from prolonged Bitcoin/MSTR corrections and potential distribution declines. BlackJack3D/iStock via Getty Images YieldMax MSTR Option Income Strategy ETF (MSTY) is the largest, as measured by assets under management, of the ultra high-yield covered call ETFs available. It's also among the most well known and popular of them.This article was written byGary Bourgeault13.61K FollowersFollowI am a former investment advisor and owner of several businesses. These days I invest only for myself while continuing to write on a variety of financial and economic topics.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.