Hi Everyone,
Here we are again with another week’s declaration of dividends to be paid Friday on stocks purchased by tonight. This happens so often, these newsletters might start to seem a bit like Déjà vu, but for those of us doing more than watching, depositing this kind of money in the bank never gets boring.
The paradox we often discuss regarding our investments making money in both directions of market movement is evident today. In the chart below we can see that CONY (the long hedge fund) and FIAT (the short hedge fund) both delivered over 100% (almost equal yields) to us from their option activities on COIN. Regardless of the up or down direction of the Crypto market, COIN is a business that collects commissions on its customer’s Crypto trading activity. Regardless of COIN’s profitability, it is interesting that greed drives people to buy this Coinbase stock when Bitcoin goes up and fear drives the downward pressure on COIN when Bitcoin drops. Our CONY and FIAT make us lots of money on that greed and fear activity. In the case of CONY, it collects money selling options on COIN as it goes up and recovers those options for a net profit as COIN drops. FIAT does exactly the same thing in reverse, as COIN trades in the opposite directions. The crazy thing is the market moves CONY and FIAT according to the price of Bitcoin, not the expected profitability of these funds. So the volatility of the Crypto market makes us great dividend money on both CONY and FIAT. At the same time, irrational selling of these funds as Bitcoin drops or rises creates major bargain hunting opportunities for us. Our profitability increases by buying more CONY only when Bitcoin is down and buying more FIAT only when Bitcoin is up. It really is that simple and THAT IS WHY WE DON’T LET OUR BROKERS AUTO-REINVEST OUR DIVIDENDS FOR US.
| Ticker | Frequency | DIVIDEND/Sh | YIELD | Payment Date | |
| CHPY | Weekly | $0.6229 | 69% | 5/2/25 | |
| LFGY | Weekly | $0.4721 | 65.90% | 5/2/25 | |
| ULTY | Weekly | $0.0936 | 81.75% | 5/2/25 | |
| AMDY | 4 Weekly | $0.3365 | 62.42% | 5/2/25 | |
| CONY | 4 Weekly | $0.6510 | 102.91% | 5/2/25 | |
| CVNY | 4 Weekly | $2.6816 | 86.83% | 5/2/25 | |
| FIAT | 4 Weekly | $0.5618 | 100.78% | 5/2/25 | |
| PYPY | 4 Weekly | $0.5519 | 55.23% | 5/2/25 | |
If you own any of these, congratulations. You made great money this week. If you don’t own them yet, look up their price histories —– except for CVNY, they are all in the bargain basement right now, and by buying today you offset the price further with Friday’s dividend.
Until next week.
Regards,
Clint