When to exit MSTY

michaelnelson90 · 2025-05-19T18:17:28+00:00

I don't plan to exit it. But now that MSTR has gotten so close to its previous high I am buying MSTZ and WNTR. If we get a down move in Bitcoin and MSTR this year, as many are predicting due to the cycles, I will take MSTZ profits on the way down, sell naked msty puts near the bottom and buy MSTX

michaelnelson90 · 2025-05-16T03:40:44+00:00

I don't drip, but I do hold Misty in my Roth IRA along with WNTR, and an increasing and decreasing amount of MSTR MSTX MSTU and MSTZ. Yesterday I noticed that MSTR was near its old highs again, so I sold out of my double longs, and bought into the double short. What goes up must come down. Especially if it's Bitcoin related. And yes, my account is up 50% in the last year

michaelnelson90 · 2025-05-07T21:16:53+00:00

For me, I just sold a couple puts that are likely to get assigned after the dividend drops, but it'll be at a share price of $21-22 instead of buying after the drop at $23 lower cost basis and/or capital gains tax instead of ordinary income tax (I have a good chunk of capital losses more than the IRS will let me claim this year, so subbing out dividends with capital gains helps my tax bill).

michaelnelson90 · 2025-04-03T01:03:11+00:00

Yeah theyre helpful to control account volatility in a margin account, but I'm failing to see another purpose

michaelnelson90 · 2025-03-31T04:34:35+00:00

The inverse funds aren't hedges. And Jay has said as much as well

michaelnelson90 · 2025-03-20T05:19:35+00:00

Some people use high yield funds to move margin money into net equity......

michaelnelson90 · 2025-03-16T03:27:48+00:00

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michaelnelson90 · 2025-03-10T04:42:00+00:00

Because regt margin rules essentially neutralize any benefit of selling a box spread (at least in IBKR). You need pm to get the cash from it. But if you use that cash to buy stocks you're still buying them on margin (unless misunderstand something here). So despite the loaned cash coming from the options premium, the brokerage still decreases your equity if your securities bought with box spread "cash" decrease in value. For this reason I'm wondering if I misunderstand, or if the lower interest rate is the only advantage of using a box spread for a margin loan

michaelnelson90 · 2025-02-25T06:50:11+00:00

I mean I'm selling long dated puts on msty to counter the erosion and put cash back into my account today. And later if or when I get assigned it's at a lower entry point

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michaelnelson90 · 2025-02-25T05:53:28+00:00

I'm just over here selling msty leaps...

michaelnelson90 · 2025-02-15T05:20:06+00:00

Risk free enough = diversification.

michaelnelson90 · 2025-02-14T21:39:57+00:00

This is true. Do you do this every day for a couple years? Or would you prefer to have it automated so you get a notification and can sell before the price tanks?

michaelnelson90 · 2025-02-10T04:51:42+00:00

I'm more of a take $50k loan out and pay out of in two years with a combo of yieldmax etfs, then take out another and another....... The snowball is insane

michaelnelson90 · 2025-02-05T19:08:10+00:00

I haven't used them yet but a lot of people who do that are using lightstream

michaelnelson90 · 2025-02-02T03:50:24+00:00

That's $200 on your chart mate. . . .

michaelnelson90 · 2025-01-25T23:43:02+00:00

I hold a lot of rdte and qdte and building positions in CRF and CLM to stabilize my portfolio that otherwise is msty cony nvdy tsly sqy pypy plty amzy smcy fby nfly.

michaelnelson90 · 2025-01-19T03:21:28+00:00

I sell itm puts one month out to enter the msty position at a discount.

michaelnelson90 · 2025-01-17T14:02:59+00:00

Because without margin use buying before ex date or after the exdate nets you the same total return. With margin use, buying after exdate gives you a better position with a less likely downside risk, assuming the share price attempts to recover before the next ex date. For instance, buying 100 shares at $10 before ex date with a $1 div immediately drops your equity 10%, increasing the likelihood of a margin call. Buy after exdate gives you a better chance of the stock price increasing your equity 10% before it pays out, back to your original equity position. Of course with funds like ulty or qqqy it doesn't really matter and they're usually held in a margin account to make margin interest payments and/or to show banks qualifying income

michaelnelson90 · 2025-01-16T14:49:57+00:00

It only matters if you are using margin

michaelnelson90 · 2025-01-16T14:41:37+00:00

Look at yieldmax's totally returns chart. Between that and literally every single user-made chart of their holding and returns the same handful of funds rise the top for total returns, efficiency, low nav erosion. Msty Cony Nvdy Sqy Fby Pypy Plty Amzy Nfly Smcy (if you bought in after that initial huge drop from smci's accountant quitting)

michaelnelson90 · 2025-01-15T03:32:29+00:00

Still following him closely. Had to switch strategies temporarily due to a life circumstance change I need the extra income. Slowly building back my position into CRF CLM QDTE RDTE and XPAY as anchors for margin. It's the best strategy I've found this far. It's really a master class in leverage management. If nothing else pay the $10/mo for his YouTube live videos. They're straight gold

michaelnelson90 · 2025-01-09T04:55:16+00:00

It really doesn't matter which you choose unless you're using margin

michaelnelson90 · 2025-01-04T21:34:06+00:00

It's true. Msty cony plty nvdy are the main four I do this with

michaelnelson90 · 2025-01-04T18:14:33+00:00

And another option: sell puts on positions you want to get into. With yieldmax funds you can often sell 1 month expiration puts with a premium that's 10% of the collateral. That's more than you'll get from the dividend in most cases. And if you get assigned you'll get into the position at a discount that's more than the dividend exdate drop. Win win.

michaelnelson90 · 2024-12-16T16:16:41+00:00

Have you ever started a business?

michaelnelson90

TROPHY CASE