What Is MSTY?

The YieldMax MSTR Option Income Strategy ETF (MSTY) is an actively managed ETF (that you can purchase on any brokerage and fully regulated) designed to generate high monthly income through a synthetic covered call strategy on MicroStrategy (MSTR), a Bitcoin proxy holding ~531,644 BTC (the largest Bitcoin holder as of April 2025). MSTY sells call options on MSTR to collect premiums, paid out as monthly dividends, while holding U.S. Treasury bills and cash for collateral. It aims for:

• Primary Goal: Current income (e.g., ~$1.337/share in April 2025, ~$6,685 on 5,000 shares).
• Secondary Goal: Limited exposure to MSTR’s price gains, capped by the call strategy.

Key Stats (April 2025):

• Price: ~$20.50/share (down from $30.50 due to tariff-war volatility).
• Dividend Yield: ~100%-160% annualized of your principle invested, driven by MSTR’s high volatility (87% implied).
• Risk: High volatility, full downside exposure if BTC and thus MSTR drops, intentionally capped upside in bull runs.

How It Works: MSTY monetizes MSTR’s Bitcoin-driven price swings, offering cash flow without selling assets like equity or BTC, ideal for entrepreneurs needing income while building a startup.

Key Stats

• Fund Inception: Feb 21, 2024
• Opened at $20/share
• Last 12 months of distributions (April 2024-April 2025): $34.52/share
  • If purchased 5000 shares at $20/share for $100,000, $34.52/share distribution payout for last 12 months total would = $172,600 (while principle remained the same as of April 2025 with share price in ~$20/share)
  • If purchased 10000 shares at $20/share for $200,000, $34.52/share distribution payout for last 12 months total would = $345,200 (while principle remained the same as of April 2025 with share price in ~$20/share)
• Assume 30% returns of MSTR growth conservatively
• Assume 5% yield per month of total invested conservatively
• If BTC, and thus MSTR goes up, MSTY goes up, ideally MSTY share/price increases > than QQQ (NASDAQ 100) CAGR of 22%