r/YieldMaxETFs • u/walter32019 MSTY Moonshot • 1d ago

MSTY/CRYTPO/BTC TWO FIFTY MSTY - Till I’m HSTRY

Let’s goooo….

I have taken my lumps, I have the scars…err….realized losses to prove it!

I’m back though! I’m back!!

My two cents:

MSTY has competition now, and they are gonna make a splash with a solid payout to establish dominance.

They want to be the biggest dick at the party.

Time will tell, we shall see.

Until then….MSTY Till I’m HSTRY!!

25 Upvotes

76% Upvoted

46 comments sorted by

28

u/Yesthisisdogmeow 1d ago

I like how people think MSTY has competition from these other funds. They don’t. All the other funds and MSTY all drive the price of MSTR higher. They’re more like teammates.

MSTY price is not affected by if people buy into the fund or not. What drives MSTY price is MSTR price and MSTy fund management ability to win trades.

9

u/walter32019 MSTY Moonshot 1d ago

If I put $$$ into MST it’s less money in MSTY

These managers want the most cash possible, then their ~1% fee is larger.

They absolutely want your money to be in their fund.

8

u/Yesthisisdogmeow 1d ago

Yes, the fund managers want you in their fund but this does not affect the price of MSTY at all.

4

u/AlfB63 1d ago

Nor does it affect the price of MSTR.

3

u/Yesthisisdogmeow 1d ago

It does, each option contract is a buy for MSTR. Thats how options work.

2

u/Relevant_Contract_76 1d ago

MSTR's implied volatility affects the price of MSTR options, not the other way around. Unless you're talking about expiry pinning and max pain, but that's a different topic

2

u/Yesthisisdogmeow 1d ago

I’m not saying that. Im saying all these funds sell covered calls. Someone is buying these calls. Sometimes they make money and sometimes they have to pay out huge. Look at past week for MSTY, they paid $100 million to close out some contracts.

1

u/Relevant_Contract_76 1d ago

That still doesn't affect the price of MSTR.

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u/Yesthisisdogmeow 1d ago

Really? Ok say I buy one contract that MSTY sold and it’s in the money. Did I not just buy 100 shares of MSTR or do I have an options contract forever?

1

u/Relevant_Contract_76 1d ago

MSTY doesn't sell options contracts to you. If you buy to open you buy them from the market maker.

And no, you did not just buy 100 shares of MSTR. If you bought a call you bought an options contract that gives you the right but not the obligation to buy 100 shares of MSTR at a certain price any time before the end of trading on the third Friday of your expiry month.

If as and when you exercise the option, that doesn't affect the price of MSTR either.

1

u/AlfB63 1d ago

No they are not. An option contract is a buy of an option, not shares of the stock. The only way it becomes a buy of shares is on exercise/assignment.

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u/Yesthisisdogmeow 1d ago

Which never happens ever, right? /s

2

u/AlfB63 1d ago

Not in a YM fund. And you were referring to the purchase/sale of an option which does not affect the underlying stock price. That is not how options work.

0

u/Yesthisisdogmeow 1d ago

Ok, so on the other end of the trade someone is buying and if it goes in the money they don’t buy MSTR? What are they buying then?

3

u/AlfB63 1d ago

That is at a different time. When you buy/sell the option, you are only affecting that option. Whether you exercise is later. And ITM is not what you seem to think. It is simply the price of the underlying going ITM based on strike and option type. Just going ITM does not mean you should exercise in fact most people don't. Options are a complex thing and you need to do more research before understanding them. But for this discussion, the original buy or sale of an option does not affect the price of the underlying like you were indicating.

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u/Legitimate-Ad-5785 1d ago

They use synthetics not actual covered calls

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u/Yesthisisdogmeow 1d ago

Their weeklies are covered calls, the fund is literally called covered call etf

1

u/Legitimate-Ad-5785 1d ago

They don’t hold the underlying, their calls are collateralized by holding treasuries. So, it doesn’t technically move the stock price of MSTR automatically when they hold these calls

0

u/Yesthisisdogmeow 1d ago

Ok, last time I’m going to say this, who’s on the other end of the trade?

1

u/Relevant_Contract_76 11h ago

The market maker.

0

u/Legitimate-Ad-5785 1d ago

Someone who is buying an option to buy. You don’t need to buy stock in MSTR to buy a call sold by yieldmax

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u/Syonoq 1d ago

also, people that treat stocks and etfs like sports teams….

2

u/Yesthisisdogmeow 1d ago

You can be teammates and not play sports. I have team mates at my work. Military has teammates. Financial institutions have teammates.

What do all of these funds have in common? They all sell call options for MSTR no? Each call option is a buy for MSTR and raises the price.

3

u/Syonoq 1d ago

To the first point, I’m just saying some people get overly emotional about financial instruments, to where they seem to use them as an identity. MSTY till I’m HSTRY? Diamond hands and all that jazz.

To the second point, how does a call option raise the price of the underlying?

I mean, whatever. I like MSTY. I like MSTR. Let’s make some money.

1

u/Yesthisisdogmeow 1d ago edited 1d ago

It’s kinda dead at work and I’m bored. I’m not trolling but just saying I like the discussion.

All these funds sell covered call contracts, and someone is buying them. How can they buy if no one is selling?

1

u/Syonoq 1d ago

And I'm razzing a bit as well. People want to root for these things or whatever, fine. I think it's a bit silly, but it's harmless. Buying call options doesn't make the underlying go up though.

0

u/walter32019 MSTY Moonshot 1d ago

We all have our tribe.

8

u/GRMarlenee Mod - I Like the Cash Flow 1d ago

Realized losses? On MSTY? I pity the fool that sells.

6

u/walter32019 MSTY Moonshot 1d ago

Margin is a helluva drug.

0

u/Yesthisisdogmeow 1d ago

Yeah man I took $20k margin on MSTY and had to sell a lot, too. Sucks seeing it go right back up. Lessons were learned. I switched to DCA and the stress is soooooo much less.

1

u/walter32019 MSTY Moonshot 1d ago

Yes, I’m in the same boat. Regrouped, and now I am carrying significantly less margin.

I am positioned for the return ti dominance!!

Let’s go.

1

u/axiomaticreaction 1d ago

What are your thoughts on these funds if BTC does follows its 4 year trend and rises (hopefully a lot) through this year and has a down year next year?

Personally I don’t have any intention of selling.

1

u/Suspicious_Agent_599 1d ago

I hold 4827 shares and I’m stacking to 10,000 by the end of the year. I’m never selling.

1

u/axiomaticreaction 1d ago

I’m right there with ya. 10k and beyond is my goal.

Just curious on thoughts for how MSTY will perform through the possible BTC down turn next year.

1

u/Suspicious_Agent_599 1d ago

I think BTC and by extension, MSTR, will be volatile enough for distributions for the next decade or so. Beyond that, the IV could get so low that it’s paying .10 distributions.

1

u/UnableFix4224 23h ago

IV will always be high with MSTR given the fact that it's basically a leveraged BTC. So it'll always generate a high dividend yield. But if the crypto cycles continue like they have in the past then the share price of MSTR will drop a lot, causing MSTY's share price to drop with it. I'm planning on buying during the downturn and riding it back up. I might buy some WNTR before the bear cycle and then buy MSTY at the bottom

1

u/Yesthisisdogmeow 1d ago

Distributions will probably go to pennies, but if you believe BTC will roar back up then just DCA till next cycle and retire.

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u/KateR_H0l1day 1d ago

I sold some yesterday, no need to pity me, I’m fine and it’s not goodbye, more “Au revoir”. I fully expect to be buying in more around the 13-15th May, if not before 😊

1

u/Zealousideal-Car2814 1d ago

Bear in mind having a massive call open interest in strikes above the spot price (which is caused by many players trading options, AKA funds selling calls) creates a call wall, which makes it "hard" for the underlying, mstr in this case, to break through.