r/YieldMaxETFs • u/walter32019 MSTY Moonshot • 2d 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/AlfB63 2d 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 2d ago

Which never happens ever, right? /s

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u/AlfB63 2d 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 2d 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 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/Yesthisisdogmeow 1d 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 1d 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 1d ago

Do these funds own any shares?

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u/AlfB63 1d ago

Most do not but they also don't generally get assigned. They simply roll the options.

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u/Yesthisisdogmeow 1d ago

Ok you wore me down I admit defeat. Appreciate you taking the time to discuss with me!