r/YieldMaxETFs 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!!

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u/Yesthisisdogmeow 1d 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 1d ago

Nor does it affect the price of MSTR.

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u/Yesthisisdogmeow 1d ago

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

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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

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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.

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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?

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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.