EXTREME DIVIDENDS INVESTOR GROUP
Hi Everyone
One of you had the same question as some on the Yahoo Finance chat room regarding the drop in ULTY’s price. YieldMax Ultra Option Income Strategy ETF (ULTY) Stock Forum & Discussion – Yahoo Finance
So, I just tried to post the following answer:
“OK everybody. In answer to Niki, Nate and anyone else wondering about their low portfolio value with high dividends on ULTY, I have been trying to analyze whats going on based their holdings in the chart on their ULTY page – yieldmaxetfs.com/ulty. So, Here is what I see:
At the bottom of the chart is a download button that brings up a detailed spreadsheet. From this you will notice that unlike others, these fund managers are writing both covered-calls and synthetic-covered-calls. Both make money and are exceptionally profitable, which explains why we get huge dividends – DEFINITELY NOT A PONZI SCHEME – they don’t invent them from our investment. Our dividends are a split of their earnings.
Furthermore, as of 10/18 you will notice at the bottom of the chart, ULTY has a healthy cash and other amount of $16,274,235.79 – not bad considering the less than 21M shares outstanding,
Because they actually own shares in many of their covered call positions, the Net Asset Value of the fund drifts with the volatility of the market. World politics being what it is, we have been in more down markets than up since the fund’s inception in Feb. of this year. Thus, YieldMax reports that ULTY’s NAV has eroded 8.83% since inception.
On the other hand, ULTY’s stock price has eroded more than 50% since inception!!!! This is typical in a market where panicked stockholders stupidly cash out without bothering to find out what is really going on. Thanks sellers, its bargain hunting time for me!!!!!”
Regards,
Clint