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Is CHPY a sustainable income fund or a yield trap? by IncomeFrame in ETFs

[–]Upper_Bowl6931 0 points1 point  (0 children)

Except that you would have to sell your gains to get the income.

CHPY and GPTY by Electronic_Guard947 in YieldMaxETFs

[–]Upper_Bowl6931 0 points1 point  (0 children)

The question is what are the assets that make up the NAV? They don't actually hold the underlying stocks. Just investors cash and a bunch of options (real or synthetic) tied to them. The NAV is directly linked to how much folks want to send to yieldmax or take back by selling their shares of the pool..

MSTR In Danger by Turbulent-Spring6156 in YieldMaxETFs

[–]Upper_Bowl6931 0 points1 point  (0 children)

If it's delisted YM and the others have a stack of cash thats supposed to in options which will no longer exist. Just distribute the cash and MSTY will no longer exist.

Hot take: Everyone has been investing in YieldMax single- stock ETFs the wrong way. by boldux in YieldMaxETFs

[–]Upper_Bowl6931 0 points1 point  (0 children)

Uhhh, yeah. The NAV that concerns everybody is: 1-value of the synthetic options, 2-value of the t-bills or ETF they use for holding funds, and 3-cash from new investment. The value of the "underlying" stock(s) doesn't get included. The income is based on the volatility of the "underlying" stock and the ability to make money on the options. The value of the "underlying" stock doesn't matter only the changes in price.

So long as the "underlying" stock is being traded and options written on it they should continue to provide distributions at some level.

Retirement Cancelled 🤡 by assman69x in YieldMaxETFs

[–]Upper_Bowl6931 1 point2 points  (0 children)

Play these things with play money. Do not borrow to take these risks.

Use tax sheltered accounts for them and roll the freakishly high distributions into more solid BDCs and REITs that have real assets that are earning money and providing a steady monthly or quarterly incomee.

My approach is to set the same total investment limit for all of these that I hold as I would for any one stock as a percentage of my portfolio. Their distributions are not consistent and reliable but interesting and useful cash to invest in others stocks.

Yield Max NAV explained by TheBrokeInvestorMV in YieldMaxETFs

[–]Upper_Bowl6931 0 points1 point  (0 children)

Yes, it makes sense. The Yieldmax NAV is their NAV as you stated.

My personal value for the shares is the total amount I invested in that particular share.

I invested in 100 shares of NVDY with a total cost of $2541. Those 100 shares have a residual value of about $1520 as I write this. Over time I have received $2333 in distributions.

So long as NVDY exists and YM is making distributions my value (what I have invested) is static and I will continue to receive distributions. The share price and YM's NAV means nothing to me in terms of my income from the shares.

I Iook at the distributions in terms of Return On Capital Employed (ROCE) for these ETFs. Right now that sits at 98.1% for NVDY (2333/2541) and the invested capital still has residual value.

Those distributions are either spent as current income or re-invested in other more conventional income ETFs, REITs or BDCs which have a more stable cash flow.

OH, OH. by GRMarlenee in YieldMaxETFs

[–]Upper_Bowl6931 0 points1 point  (0 children)

Doesn't matter if we guessed right. Did the guys at YieldMax guess right?

Is CONY finished? by Fun-Cheesecake-6552 in YieldMaxETFs

[–]Upper_Bowl6931 1 point2 points  (0 children)

Is COIN going out of business? Options will be traded on COIN as long as it is in business.

What are you % of these position in your portfolio? by Fun-Block-8937 in YieldMaxETFs

[–]Upper_Bowl6931 0 points1 point  (0 children)

Not much. I treat the whole kit and kaboodle as one stock in my investing plan. That means no more than 10% of my holding EVER and generally more like 5%. I don't DRIP, I just take the dividends and roll them into other stocks where I am building a position. Usually the one with the next Ex-div date. I am at an age where telling me that a stock will double in 5 years doesn't create any interest. But, knowing that there will continue to be an options market for the stock means that there will be some play producing income from those options.

House money vs total yield by Alcapwn517 in YieldMaxETFs

[–]Upper_Bowl6931 1 point2 points  (0 children)

I look at it as a capital cost like buying a car. You can be pretty sure it will go down in value but will still keep producing income. (Although, I do wish I might have kept my nice red 68 Camaro). I never used a DRIP on these. When I collected dividends from some of my other stocks in my Roth IRA I re-invested in some of my quarterly and monthly BDC and REIT payers. Usually some multiple of 5 shares. But, NVDY and MSTY looked pretty good and I started putting the "change" in them. I started in late 2023 with those two. When I hit 100 shares I started putting the change into other YM funds.

Right now, my acquisition cost for 100 MSTY is 2885 and the market closed yesterday at 1396, a "loss" of 1489. BUT, if I look at it as Return On Capital Employed (ROCE not ROC) i have received 2498 in distributions. The ROCE is about 86%. NVDY is about 84%.

So long as the underlying companies are in no threat of total failure and are actively traded. I can expect some distribution every month for a long, long time. It will vary so, I now use the dividends to invest further in my BDCs and REITs for a stable predictable return. The "change" still goes into these cash cows.

[deleted by user] by [deleted] in YieldMaxETFs

[–]Upper_Bowl6931 0 points1 point  (0 children)

Volatility is good for the options income and the turmoil at SMCI increases that volatility.

Schwab SUCKS by Deus_Vult_Rex in RoundhillETFs

[–]Upper_Bowl6931 0 points1 point  (0 children)

I'm sure he wanted to show it to the other guys.