The $MSTY strategy consists of three components:
1️⃣ Underlying Synthetic Long
2️⃣ Short Calls (covered calls)
3️⃣ Long Calls (occasionally for upside capture)

This month, the portfolio management of the long call component has been VERY disappointing.

YieldMax has lost nearly $30M on extremely out-of-the-money calls (27-39% OTM), essentially gambling on $MSTR upside.

🔻 ~$22M has already expired worthless in 2 weeks.
🔻 Another $8M will likely expire worthless on Friday unless $MSTR skyrockets above $500. 

These moves have eroded the fund's value & will reduce our dividend payout.  

While I could understand buying OTM calls before the SBR news, doing this for the weeks of 1/17, 1/24, and 1/31—at such low probabilities & high premiums—feels excessive! 

When I look at this, I think: 
🚫 Cut the costly, low-probability OTM calls!
✅ Stick to the covered calls.  If more upside is needed, adjust with higher strike short calls!  

Is anyone else concerned about their decisions? Check the charts before replying.     

(Note:  To be fair, a few long calls did pay off earlier this month. But overall, we're still set to lose approx. $26M net in just a couple weeks!   )
#MSTY