YieldMax files for ETF focused on MicroStrategy derivatives
YieldMax, a firm specializing in exchange-traded funds (ETFs), has filed to launch a novel yield-bearing ETF based on shares of Michael Saylor’s Bitcoin (BTC) holding company, MicroStrategy. According to a Dec. 7 filing with the U. S. Securities and Exchange Commission (SEC), the proposed ETF, named Option Income Strategy ETF, is scheduled for a 2024 release and will trade under the ticker MSTY. This ETF employs a “synthetic covered call” strategy, which involves a combination of buying call options and selling put options to generate income. This income is then planned to be distributed monthly to MSTY ETF holders. Interestingly, the ETF will not hold any spot MicroStrategy shares but will solely focus on trading MSTR derivatives . To mitigate risks, the fund will cap its monthly gains from call options at 15%. This strategy means that the monthly yields from the ETF are not directly tied to the performance of MicroStrategy’s stock. Therefore, investors co...