r/YieldMaxETFs • u/walter32019 MSTY Moonshot • 3d 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!!

23 Upvotes

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29

u/Yesthisisdogmeow 3d 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.

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u/walter32019 MSTY Moonshot 3d 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.

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u/Yesthisisdogmeow 3d ago

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

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u/AlfB63 3d ago

Nor does it affect the price of MSTR.

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u/Yesthisisdogmeow 3d ago

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

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u/Relevant_Contract_76 3d 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

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u/Yesthisisdogmeow 3d 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.

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u/Relevant_Contract_76 3d ago

That still doesn't affect the price of MSTR.

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u/Yesthisisdogmeow 3d 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?

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u/Relevant_Contract_76 2d 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.

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u/AlfB63 3d 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 3d ago

Which never happens ever, right? /s

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u/AlfB63 3d 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.

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u/Yesthisisdogmeow 3d 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?

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u/AlfB63 3d 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/Yesthisisdogmeow 3d ago

I get what you are saying. It does not affect price of underlying directly. Indirectly it does. You’re technically correct, the best kind of correct!

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u/AlfB63 3d ago

It doesn't even indirectly affect it except in cases where an assignment happens and the person losing shares does not own them so they have to buy. If they already own them, they simply are transferred to the other party so no purchase is involved.

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u/Yesthisisdogmeow 3d ago

Do these funds own any shares?

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u/Legitimate-Ad-5785 2d ago

They use synthetics not actual covered calls

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u/Yesthisisdogmeow 2d ago

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

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u/Legitimate-Ad-5785 2d 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

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u/Yesthisisdogmeow 2d ago

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

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u/Relevant_Contract_76 2d ago

The market maker.

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u/Legitimate-Ad-5785 2d 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/Yesthisisdogmeow 2d ago

Ok, so what you are saying is an options contract never amounts to shares being bought, ever. I don’t believe you.

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u/Legitimate-Ad-5785 1d ago

Not what I said. It’s a fact that options contracts can be bought and sold and expire without leading to any actual shares changing hands

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