YieldMax MSTR Option Income Strategy ETF

MSTY

Market cap $1.42B

WNTR is up 68%+ since October 2025, while BTC and IBIT are down over 20%, establishing WNTR as a high-beta inverse BTC exposure that can complement even long-term HODL positions. I remain skeptical of options-based ETFs. Despite a reported 60%+ yield, WNTR's structure and distribution history tell a different story—yet specific advantages still support a strong buy. The fund's heavy put-credit positioning signals expectations of near-term dramatic downside in MSTR and Bitcoin.

CHICAGO and MILWAUKEE and NEW YORK, Dec. 31, 2025 (GLOBE NEWSWIRE) -- YieldMax® ETFs today announced distributions for the YieldMax® Group 2 weekly pay ETFs.

CHICAGO and MILWAUKEE and NEW YORK, Dec. 24, 2025 (GLOBE NEWSWIRE) -- YieldMax® ETFs today announced distributions for the YieldMax® Group 2 weekly pay ETFs.

YieldMax MSTR Option Income Strategy ETF (MSTY) closely tracks MSTR, serving as a high-yield covered call ETF proxying Bitcoin exposure. MSTY's recent share price decline is attributed to MSTR and Bitcoin corrections, not structural NAV erosion, suggesting strong rebound potential with underlying recovery. Covered call upside caps refer to option premium limitations, not direct share price ceilings; MSTY's income and price will rise if MSTR and Bitcoin rebound.

YieldMax MSTR Option Income Strategy ETF (MSTY) offers a headline 110%+ yield but suffers from severe NAV erosion and high risk. MSTY's covered-call strategy on MSTR exposes investors to leveraged Bitcoin volatility, with a -45% total return over the past year. Distributions are largely return of capital, not sustainable income, and the ETF's structure risks ongoing book value destruction.

YieldMax MSTR Option Income Strategy ETF (MSTY) is now a strong sell due to ongoing Bitcoin weakness and MSTY's structural underperformance. BTC and major altcoin dominance declines, coupled with stablecoin inflows, signal a risk-off phase and likely further crypto drawdowns. MSTY's options strategy has failed to outperform MSTR, on a total returns basis, raising questions about MSTY's value addition through its options sleeve.

The Dividend Harvesting Portfolio remains up 32.60% on invested capital, yielding 8.02%, despite a temporary dip in dividend income from the MSTY reverse split. A dovish Fed rate cut and bullish GDP projections support expectations for a year-end market rally, favoring income-generating, rate-sensitive holdings. Recent capital was allocated to AMLP for high-yield, fee-based energy exposure, and to VZ, citing turnaround potential and robust EBITDA.

The Yieldmax MSTR Option Income Strategy ETF (MSTY) offers a headline 100%+ yield, but this is largely unsustainable and primarily funded by return of capital. MSTY consistently underperforms MSTR during rallies, while only marginally mitigating downside, making it unattractive compared to direct MSTR exposure. Recent dividend reductions and high return of capital indicate the payout is shrinking and not supported by true income generation.

I construct covered call ETF portfolios using a three-bucket approach: safe, moderate, and ultra-high yield for balanced income and risk. Portfolio weightings target 50% in 10–25% yield ETFs, 30% in 25–50% yield, and 20% in 50%+ yield, with regular rebalancing. Proxies like IWMI (safe), BLOX (moderate), and MSTY (ultra-high yield) illustrate how to allocate and manage risk across buckets.

The beauty of passive income grows with time, especially in the current economic climate.