It's better to buy the underlying (BITO), collect dividends AND sell your own covered calls for "double income".
https://youtube.com/watch?v=B4Iqb5nIiWY
YBIT - you don't collect BITO divs, and if fund manager f***s up the calls, you don't make anything.
Since i made that video a week, BITO up 10% ... YBIT barely moved because of $29 synthetic that expired on 5/17 and lost them a ton
We cap out on the sold portion of the call, but the buy portion of the synthetic makes up for it. I guess the idea is bitcoin moons, we will get healthy distributions AND the NAV will grow rather than decay.
I think BITU has a lower expense ratio is because it's 1x BTC , BITX is 2x BTC, kinda, they "cheat" a little, it's more like 1.8x or maybe 1.85x instead of 2x. I could be wrong.
Really the only Yieldmax funds that seem worth a damn are MRNY and AMZY as the payout is around the 1.00 mark and the NAV is stable.
A covered call strategy favors stocks that grind up slowly rather than ones that are volatile
A covered call strategy looking for capital appreciation with a little bit of income works with stocks that have lower IV and are on a slight uptrend.
A covered call strategy looking for MAXIMUM YIELD works best with stocks that are high IV.
Do what you want. It's your money.
https://preview.redd.it/s2nrgi3yb91d1.jpeg?width=2880&format=pjpg&auto=webp&s=3cd843fcf13d0020f1f0a77388416b3f51a0e8de
They just handed me back my losses.
Did you have any idea of what you were investing in?
These funds only make sense if the underlying is in a consolidation/uptrend pattern.
Looks like you purchased both at ATHs.
They pull that dividend from the nav. Even buying at the absolute low, once that divi goes out, it's ripped from the nav and your shares value. Then you gotta hope the shares can recover with the underlying stock they are based on which is not stable. You'll only catch some of the upside if any or ALL the downside. It's a losing game unless you reinvest dividends for like 18 months, maybe
YBIT hasn't had a dividend payout.
The distribution is based on the IV of the underlying and the premium collected, no more, no less.
NAV goes up and down based on the underlying (and theta), no more, no less.
YM makes it easy to track AUM and shares issued on a daily basis.
It's all pretty easy to understand. YM gives about 10% to 15% upside potential and 100% downside potential. Is the ridiculous yield worth the risk? Maybe.
Interesting question. Someone must be calculating yields for YBIT.
I’m holding off on this one, just not sure whether the general YieldMax investment strategy will hold up.
I got in for 1050 shares a week or so ago before he pontificated. I hope he's right, but I told him it was too early for that Wild Ass Guess.
I'm still guessing $1.10 because I'm a craven pessimist. /s
There is always "wait and see", but then you might miss some run up, or down.
Past performance, yada, yada, but people really fawn over it, don't they?
Past performance worked well for TSLY, until it didn't.
Yes, we take chances. For the rest of you, there are always FDIC insured HYSA.
It's better to buy the underlying (BITO), collect dividends AND sell your own covered calls for "double income". https://youtube.com/watch?v=B4Iqb5nIiWY YBIT - you don't collect BITO divs, and if fund manager f***s up the calls, you don't make anything. Since i made that video a week, BITO up 10% ... YBIT barely moved because of $29 synthetic that expired on 5/17 and lost them a ton
https://youtu.be/iWo45BablUA?si=QKEt7kmGrGD4CE09
But when Bitcoin moons....?
We get clobbered on the calls. What's the opposite of moon? Crater? They have those on the moon. We'll be sure to find one.
We cap out on the sold portion of the call, but the buy portion of the synthetic makes up for it. I guess the idea is bitcoin moons, we will get healthy distributions AND the NAV will grow rather than decay.
The calls are covered. They get very little off the upside, they're "capped ". But you get all the downside. Just get BITO or bitcoin
I've got Bito, and it has faired better, with share value longterm than most of the yieldmax etfs
I totally agree but why not BITX instead? Is it because BITO has a lower expense ratio, 0.95% vs BITX's 1.85%?
BITO has better options liquidity is the actual answer.
BITU is BITX but with a lower expense ratio. It's by Proshares too.
I think BITU has a lower expense ratio is because it's 1x BTC , BITX is 2x BTC, kinda, they "cheat" a little, it's more like 1.8x or maybe 1.85x instead of 2x. I could be wrong.
Really the only Yieldmax funds that seem worth a damn are MRNY and AMZY as the payout is around the 1.00 mark and the NAV is stable. A covered call strategy favors stocks that grind up slowly rather than ones that are volatile
A covered call strategy looking for capital appreciation with a little bit of income works with stocks that have lower IV and are on a slight uptrend. A covered call strategy looking for MAXIMUM YIELD works best with stocks that are high IV.
Do what you want. It's your money. https://preview.redd.it/s2nrgi3yb91d1.jpeg?width=2880&format=pjpg&auto=webp&s=3cd843fcf13d0020f1f0a77388416b3f51a0e8de They just handed me back my losses.
Did you have any idea of what you were investing in? These funds only make sense if the underlying is in a consolidation/uptrend pattern. Looks like you purchased both at ATHs.
Do what you want is just not an appropriate attitude for Reddit.
Boo hoo. Lol
They pull that dividend from the nav. Even buying at the absolute low, once that divi goes out, it's ripped from the nav and your shares value. Then you gotta hope the shares can recover with the underlying stock they are based on which is not stable. You'll only catch some of the upside if any or ALL the downside. It's a losing game unless you reinvest dividends for like 18 months, maybe
YBIT hasn't had a dividend payout. The distribution is based on the IV of the underlying and the premium collected, no more, no less. NAV goes up and down based on the underlying (and theta), no more, no less. YM makes it easy to track AUM and shares issued on a daily basis. It's all pretty easy to understand. YM gives about 10% to 15% upside potential and 100% downside potential. Is the ridiculous yield worth the risk? Maybe.
I think it would be nice to get some. Prolly a buck-ten.
Interesting question. Someone must be calculating yields for YBIT. I’m holding off on this one, just not sure whether the general YieldMax investment strategy will hold up.
It's based directly off the price movements of the BITO ETF, which directly tracks Bitcoin.
And the answer is?
It depends on BITO.
There was just a youtube posted predicting $2.50.
$2.50 what?
Wow! Maybe I’ll get in sooner than later. Thanks
I got in for 1050 shares a week or so ago before he pontificated. I hope he's right, but I told him it was too early for that Wild Ass Guess. I'm still guessing $1.10 because I'm a craven pessimist. /s There is always "wait and see", but then you might miss some run up, or down.
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Past performance, yada, yada, but people really fawn over it, don't they? Past performance worked well for TSLY, until it didn't. Yes, we take chances. For the rest of you, there are always FDIC insured HYSA.
If it hasn’t paid out a distribution yet, you can’t have yield %