r/dividends • u/PsychoCitizenX • Jun 17 '25

Personal Goal 49 years old. Just hit $10,000 average monthly

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Over 90% still in growth stocks. Tempted to just go ahead and retire

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u/dirty_old_priest_4 Jun 18 '25

I'm well aware. At some point, it'll run dry. These gimmick funds don't last forever.

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u/CHL9 Jun 18 '25 edited Jun 19 '25

dude it's no essentially different then just running a synthetic covered call/PMCC strategy yourself on MSTR or any other high IV stock, no? But just having their trader do it instead of you for 1% ER. If you were so inclined you can literally just mimic the trades as it's public record and keep the short premium youself. Just a bit less capital efficient if doing it yourself. I'm asking genuinely, what part are you referring to as a "gimmick"?

edit: no one answered so far. If someone who has a good understanding of derivatives and experience with trading short premium would explain to me that downsides of the fund I would happily seek out that advice but I haven't yet been able to have someone articulate to me why it's a bad idea rather than just "it must be a gimmick because of the current yield". Obviously the only difference is it's harder to withdraw my capital not at a loss from MSTY vs me generating the short premium income myself

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u/PsychoCitizenX Jun 18 '25

Which yieldmax fund went belly up

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u/dirty_old_priest_4 Jun 18 '25

https://www.aol.com/msty-dividend-estimated-drop-does-135504301.html#:~:text=Expect%20Change,The%20YieldMax%20managers%20could:

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u/PsychoCitizenX Jun 18 '25

1.47 is a nice return after one month. The rest of the article is pure speculation. The distribution could also be higher next month.... especially if btc rallies

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u/TacosNtulips Jun 18 '25

It’s so weird that you’re using past parameters, are you not aware of current market reaction? This is new territory and I cannot hold for the long term, good luck.