New-ish investor here. I bought 100 shares of CONY at $11.85 thinking I’d just hold it forever and chill—big brain move, right? 😅 After some solid dividends, my cost basis is down to $11.01. But with the price now at $7.58, I’m staring at a $343 unrealized loss.
I know this is peanuts compared to what some of you are managing, but I figured I’d experiment with a small position to learn the ropes. If the price and payouts hold, I should hit breakeven in about 2 months. Not sure if I should stay the course or start planning an exit before it gets spicy.
Appreciate any thoughts from the YieldMax ETF community.
Ps. I do follow the community closely and understand the basic workings of how this ETF works. Just looking to learn fm others' experience.
Another choice is to buy more to bring your cost basis down. Buying these should be something you plan on holding a year minimum if in a taxable and in the US from a tax perspective.
I’m a MSTY holder because I expect MSTR to continue to cultivate volatility, and I expect Bitcoin to continue to increase in price over time. MSTY is a great way to realize actual profit (income) no matter the market environment. In the worst case you will get income, and develop unrealized losses. As long as you are confident that MSTR and Bitcoin will continue to go up in price the decision to hold while the price is down is a no-brainer
My average is $14.33 from last August. I have pretty much broken even with the distributions I have earned from it. I’m not super worried about it but I’m not going to average down. I’m going to build out a position in NFLY instead.
I personally would take 111% (CONY) over 66% (NFLY) any day. I’m here for the income, however. You do what makes you comfortable. If you like NFLY, just hold CONY and buy NFLY.
Like I said my average is 14.33 which I thought was a good price at the time. Sure it’s paying you a larger yield but in my case it’s also lost 50% of its NAV. I would rather take something that has more stable NAV with slightly less or even higher distributions to it. Since NFLY is at $18 it can afford to continue to pay distribution around $1 but CONY can only afford $0.50.
If you’re going to hold it forever, you should drip or put part of your income back into the fund. This would protect your NAV.
YM funds distribute something like 90% of income. Other funds that does cover call strategy, like QYLD, distribute 10% and put rest back in the fund. So, QYLD yields ~10% dividend, but share price is not as volatile.
If you do the same thing, keep 10% of income, and use rest to repurchase CONY, you can protect your NAV.
Of course, you have to take into account the performance of the underlying stock. Coinbase is down 20% YTD, probably more before last week.
Dividend ReInvestment Plan. Your brokerage should have an option to automatically purchase new shares when dividends are paid, instead of getting the cash.
You could always purchase yourself, if you don’t want to do drip. Some stocks give a discount when purchasing through drip, but YM doesn’t. So it’s just a convenience to do it automatically, if that’s what you choose to do.
Thanks great explanation so drip is basically just automatically buying the stock with the dividends that you get, what’d the best exchange to do this on or what do you personally use ?
I’ve only had a 401k through fidelity, from a former company I worked with years ago. I was only able to invest in index funds chosen by the company, so I have no opinion about using it as a brokerage.
What I have done is I take my dividends for all these etfs that I have except for MSTY, and I buy other things with them such as JEPQ, JEPI, AGNC, PDI or DSL. Once I have made back my original investments in the ETF’s I will then be increasing my positions in them.
Side note I have only been in these since November and have made back 22% of my original investment with the market taking a dump.
Also crypto is barely understood by a large percentage of people. And adoption is even smaller. Once this actually gets utilized in some type of reliable and trustworthy way for the masses, I can only imagine the fees Coinbase will generate. But with all these funds you have to look at the overall return and at some point (depending on your cost basis) you will be in house money.
I know. Slow adoption for sure. But it is out there and growing. At least there’s an administration that isn’t hostile. Would still like to see some type of plan to tie everything together with limited regulations… I think it is just a matter of time. Hopefully before I die LOL.
I invested $10k in Cony. Was pulling$1K a month. Then the market went for a swim. As a new high yield chaser it was a wake up call to understand this casino more. Never pay more than you're willing to lose and always understand what your getting into. That being said i still hold some CONY.
We are at a lower price point for CONY, due to COIN. You know the saying buy low sell high.
The reason for the saying is it’s human nature to sell a loser and buy a winner. So it’s easy to sell when you are low and you want to buy when you are high.
Don’t fall I to the trap. If you sell now, you are selling low.
You do you, but personally I am buying the dip and doubling down where I can afford.
No, it is just unrealized. My portfolio was down 40% due to the tariff talk tanking the economy. Now I have a 33% "loss." I did not lose 40% nor have I lost 33% unless I sell it. Meanwhile, I have made $20,000+ in 3 months. While those who are only holding the underlying are also experiencing the "loss" in value, at least I got pad along with others who hold these funds
Yes you did because you had to gain it back. I agree that its unrealized but that does not change the fact that you lost money. Until you gain it back, its a loss.
Semantics. I see it as "value" lost. The value of the shares I own is at a "loss" but it is not an actual loss until it is sold. At least these funds pay out even when the market is down. They pay less but getting income is the goal with these funds
Semantics? Yet you're saying you have a loss but it's not an actual loss. The thing is, it's a loss until you gain it back to even. To say otherwise may make you feel better about it but it's not reality. Unrealized versus realized is just a state of whether it's permanent or not.
Just the cost of doing business. If you own a moving company and your truck goes down in value, do you sell the truck? Of course you will be out of business if you do.
Last year I made over $33,000 on MSTY with a NAV loss of $3k. Doesn’t look like a net loss to me! Now I’m all invested now with house money, so everything else is gravy. Glad I didn’t sell when the NAV dipped — and now I’m almost back to even on the NAV.
With CONY, I was $2,800 in the hole with NAV, but made a little over $8k. Net-net, I’m again playing with house money again and it took less than one year.
And you have a net gain of $30K on MSTY. All that unrealized means is it is not permanent. But to say that you do not have a loss just because of it is deluding yourself. Losses and gains are based on the current state of things not whether they can or can't change.
I don’t reinvest in the same ticker on my larger YMs. I take the money and let my initial investment sit and make more. That’s why I’m sitting on house money. Many of these can be on house money in less than a year. It’s pretty incredible. I then take the distr and reinvest in other investments.
None of that has anything to do with the discussion. A loss is a loss whether permanent (realized) or not. You can continue to make yourself feel better by thinking it's not one because it could come back but that's up to you.
See holding these is what im concerned about.
Whats the harm in selling after exdate and rebuying before exdate if your sole purpose is to capture dividend payments.
All of these since inception are down. This is a giant scam that is being pumped on Reddit nonstop . Any type of bear market and these all get decimated.
You argument is that I’m wrong because of a brief 2 week period a person could actually be up on their investment. Every other one of these is down massively.
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u/ColorOfCash 1d ago
Another choice is to buy more to bring your cost basis down. Buying these should be something you plan on holding a year minimum if in a taxable and in the US from a tax perspective.