Exit 200%+ Yield MSTY - And Don't Look Back
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Sagar Agarwal612 FollowersFollow5ShareSavePlay(12min)CommentsSummaryYieldMax MSTR Option Income Strategy ETF (MSTY) is now a strong sell due to ongoing Bitcoin weakness and MSTY's structural underperformance. BTC and major altcoin dominance declines, coupled with stablecoin inflows, signal a risk-off phase and likely further crypto drawdowns. MSTY's options strategy has failed to outperform MSTR, on a total returns basis, raising questions about MSTY's value addition through its options sleeve. Distributions are primarily realized capital gains, not true income, diminishing MSTY's appeal versus simply holding the benchmark. Eoneren/E+ via Getty Images This is my third thesis on the YieldMax MSTR Option Income Strategy ETF (MSTY), with which I aim to argue that this ETF is now a ‘strong sell.’ Primarily because its benchmark asset, Strategy (This article was written bySagar Agarwal612 FollowersFollowBuilding a high-income portfolio is about more than just buying superficially high-yielding assets, it also involves preserving and growing wealth over time. I come here as an investment analyst, not a financial advisor, with the aim of educating readers on how to do both. My focus will be on opportunities that, at a minimum, match the market's risk-return tradeoff and grow their capital base. That means not only identifying new opportunities but also warning investors about misleading ones. In addition, I’ll provide market and economic commentary when relevant.All of the above will be done with basic fundamentals in mind; for the clichéd but gospel-worthy reason that if the foundation of a building isn't strong, it can't become a skyscraper.As for my credentials: I bring nearly two decades of experience as a technical trader, fintech researcher, startup consultant, finance writer, and small business owner - supported by a graduate degree in economics and multiple post-graduate degrees in finance and business administration.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.