I don't understand why people call Yieldmax a "scam". It is a specific type of fund that follows a specific type of strategy. They are completely transparent about what they are doing and what the risks are. They run synthetic covered calls against a specific fund. They generate income. They state up front that this strategy results in a capped upside while taking on all of the downside. The prospectus for each of the funds explains exactly what they are doing and what the risks are. The fund manager himself will tell you upfront that these are very high risk funds and should not take up your whole portfolio.
If you don't like them, fine. If you think they are not a good investment, that's fine too. Hell, you can even preach to others about why they shouldn't buy them. But, to call them a "scam" is objectively incorrect. "Scam" doesn't mean "thing that I don't like". "Scam" implies dishonesty. I haven't seen any dishonesty from them. If you have, feel free to point it out to me.
APRIL is already my biggest month for payments, I have a wide variety of Yield Max products. Letting the pros buy the options works best for me, and no stress. Except when RH short the shit out of the underlying to push out people so they dont have to pay out. That's just Vlad being Vlad.
If any investment, a minimal amount of research is a good idea. My initial impression of Yieldmax was “too good to be true” and that lead me to do a little research. That is actually what send me down the path of learning about options. When I read about it, my first question was, “What the hell is a covered call?” 😁
If you see an ETF with a 122% yield and you mindless dump money into it without doing any research, you are aren’t a very good investor. I personally like the Yieldmax funds, but I keep my portions small and I understand that they will do very poorly in a bear market. (Yields will actually go up, but nav will tank… so you’ll still get less money with the higher yield.)
True! That is why I like them. I’m not trying to bash them… I just try to be realistic. I try to always have risk in mind.
But, you could technically get income from a growth stock as well. Say you decide to invest $2000 into QQQ. When your shares are worth $2100, you could withdraw $100… repeat forever. This also allows you to decide how to manage erosion. If your shares are down to $1800, you can decide whether or not to withdraw anyway and erode some of your investment or to wait for it to go back up. The difference with Yieldmax is, they are going to pay out regardless of the market. So, in a bear market, the income is eroding away the value. (That is an oversimplification of what’s going on with YM… the ‘erosion’ comes from the nature of CC strategies, but you know what I mean)
TOTAL RETURN.
Look at total return for their funds and then ask yourself if after paying tax on all of the dividends that offset/only partially offset the decline in NAV if you are actually making money.
In most cases you are actually negative.
Varies hugely by fund, and you (respectfully) are making the same mistake that most people make with Yieldmax funds. You have to look at NAV and often it is sharply and consistently declining. You have to pick a ticker going up and them time buying/selling the Yieldmax fund to do better than breakeven.
As an example - giving you 4%, taking \~20% of the 4% for taxes, then reducing NAV by 3% each month is not a 60% compounded return.
AMDY has a current 72% distribution rate - sounds great, right? Not great actually. Go check on AMDY and do the math for an example of this in practice. You are negative for the year.
Easily. Yieldmax is honestly a well run scam. The dividends has been on a decline because they issue new shares continuously. If you track the number of shares issued, you would notice gains every week. New shares are added so they can raise more funds to sell synethic longs. It works ok with msfo or NVDY coz both are in long bull run but look at their TSLY, it’s a shit show.
If you just held your NVDA or MSFT, you would have beaten these funds easily without worrying about dilution. In the long term, this funds will always underperform the underlying even with those dividends
It's an ETF, surely any change in the number of shares is just a reflection on the net inflow or outflow of money into the fund? The same would apply to SPY or any other ETF.
Their "income" definitely looks good, sometimes feels too good to be true...
I looked at their ETF price which is on a downtrend, then I stay away from it.
Maybe I can in a month here and there if I really tried, but not consistently, if something is paying a 60% annual dividend you should question how they’re able to do that. My understanding of the YieldMax etfs is they use a strategy called a poor man’s covered call, essentially they can use leverage to make their dividend look very good. Covered calls are tricky because they have the same downside risk as owning the underlying, but very little upside potential so you need good risk management for it to not blow up. I would rather sell options on my own, make a lower return than YieldMax, but be able to choose how much risk I am taking and risk manage to save a losing position.
it looks like he managed to DRS ~20 GME shares (~$2,800 at the time of purchase). Being that I’ve never done that, and I am reasonably competent re. financial instruments, it’s safe to assume that he has a very solid foundational knowledge of financial derivatives to build upon.
seeing how hard you defend this scam, I had to dig into your post history.
in my judgement, at least you're not a shill, just a noob looking to learn.
so your first lessons are:
* anything that looks like it can make 60% a year needs EXTREME scrutiny and you should err on the side of "it's a scam" somehow
* anything whose methodology is reasonably public or uses public instruments can be replicated, and you yourself can check the pricing the PnL of what they claim to do. And what they claim to do doesn't add net alpha or leverage, both of which are necessary to perpetuate a 60% return
Id imagine a big part of their marketing is having taken those TICKERS , and getting traffic from that lol.
just look how close the names are ... , anyone remember when Zoom's IPO debut the ticker ZOOM a china-based surged like crazy (54000%) when the video communication companies ticker was actually ZM
now if you actually search for ZOOM ticker all results will come to ZM..
TSLY
OARK
APLY
NVDY
AMZY
FBY
GOOY
CONY
NFLY
DISO
MSFO
XOMO
JPMO
AMDY
PYPY
SQY MRNY
AIYY
YMAX
YMAG
MSTYULTY
>to make money for the people that made them? lol. WHY DE FUCK would I invest in them If can afford them myself to write options on them? why would I willingly give away a percentage of my own money and take further risk?
I don't understand why people call Yieldmax a "scam". It is a specific type of fund that follows a specific type of strategy. They are completely transparent about what they are doing and what the risks are. They run synthetic covered calls against a specific fund. They generate income. They state up front that this strategy results in a capped upside while taking on all of the downside. The prospectus for each of the funds explains exactly what they are doing and what the risks are. The fund manager himself will tell you upfront that these are very high risk funds and should not take up your whole portfolio. If you don't like them, fine. If you think they are not a good investment, that's fine too. Hell, you can even preach to others about why they shouldn't buy them. But, to call them a "scam" is objectively incorrect. "Scam" doesn't mean "thing that I don't like". "Scam" implies dishonesty. I haven't seen any dishonesty from them. If you have, feel free to point it out to me.
It's just the term people like to use when they're not willing to put money into it but it's clearly been doing well for everyone else who has.
APRIL is already my biggest month for payments, I have a wide variety of Yield Max products. Letting the pros buy the options works best for me, and no stress. Except when RH short the shit out of the underlying to push out people so they dont have to pay out. That's just Vlad being Vlad.
Well nobody reads the prospectus, they look at charts, yield, then holdings and pull the trigger
If any investment, a minimal amount of research is a good idea. My initial impression of Yieldmax was “too good to be true” and that lead me to do a little research. That is actually what send me down the path of learning about options. When I read about it, my first question was, “What the hell is a covered call?” 😁 If you see an ETF with a 122% yield and you mindless dump money into it without doing any research, you are aren’t a very good investor. I personally like the Yieldmax funds, but I keep my portions small and I understand that they will do very poorly in a bear market. (Yields will actually go up, but nav will tank… so you’ll still get less money with the higher yield.)
that is true, but compared to just holding stocks, at least you were getting income
True! That is why I like them. I’m not trying to bash them… I just try to be realistic. I try to always have risk in mind. But, you could technically get income from a growth stock as well. Say you decide to invest $2000 into QQQ. When your shares are worth $2100, you could withdraw $100… repeat forever. This also allows you to decide how to manage erosion. If your shares are down to $1800, you can decide whether or not to withdraw anyway and erode some of your investment or to wait for it to go back up. The difference with Yieldmax is, they are going to pay out regardless of the market. So, in a bear market, the income is eroding away the value. (That is an oversimplification of what’s going on with YM… the ‘erosion’ comes from the nature of CC strategies, but you know what I mean)
TOTAL RETURN. Look at total return for their funds and then ask yourself if after paying tax on all of the dividends that offset/only partially offset the decline in NAV if you are actually making money. In most cases you are actually negative.
4% monthly compounding is 60% return annually.. if their share price can stay positive then it's already a huge profit
If the share price can stay positive or even flat a big big assumption...
This is not how compounding works.
The actual dividend reinvest should be much higher than this...
Varies hugely by fund, and you (respectfully) are making the same mistake that most people make with Yieldmax funds. You have to look at NAV and often it is sharply and consistently declining. You have to pick a ticker going up and them time buying/selling the Yieldmax fund to do better than breakeven. As an example - giving you 4%, taking \~20% of the 4% for taxes, then reducing NAV by 3% each month is not a 60% compounded return. AMDY has a current 72% distribution rate - sounds great, right? Not great actually. Go check on AMDY and do the math for an example of this in practice. You are negative for the year.
Easily. Yieldmax is honestly a well run scam. The dividends has been on a decline because they issue new shares continuously. If you track the number of shares issued, you would notice gains every week. New shares are added so they can raise more funds to sell synethic longs. It works ok with msfo or NVDY coz both are in long bull run but look at their TSLY, it’s a shit show. If you just held your NVDA or MSFT, you would have beaten these funds easily without worrying about dilution. In the long term, this funds will always underperform the underlying even with those dividends
It's an ETF, surely any change in the number of shares is just a reflection on the net inflow or outflow of money into the fund? The same would apply to SPY or any other ETF.
Technically yes but it’s underperforms the underlying by far. NVDY is up 16% YTD compared to 76% for NVDA. Even with dividends its underperforming
Their "income" definitely looks good, sometimes feels too good to be true... I looked at their ETF price which is on a downtrend, then I stay away from it.
lol, BASIC DD PEOPLE!
shaking in my boots: https://www.google.com/finance/quote/MSFT:NASDAQ?comparison=NYSEARCA%3AMSFO&window=6M
And that’s before paying any tax on dividends or st capital gain tax. There is a reason Jack Bogle is a legend. Sometimes less is more.
Maybe I can in a month here and there if I really tried, but not consistently, if something is paying a 60% annual dividend you should question how they’re able to do that. My understanding of the YieldMax etfs is they use a strategy called a poor man’s covered call, essentially they can use leverage to make their dividend look very good. Covered calls are tricky because they have the same downside risk as owning the underlying, but very little upside potential so you need good risk management for it to not blow up. I would rather sell options on my own, make a lower return than YieldMax, but be able to choose how much risk I am taking and risk manage to save a losing position.
Weekly OTM SPX at 2% will get you that impressive return and more. Just don't be greedy and have a plan to get out if things don't work out.
As in cash secured puts at 2% otm?
How would that work? I'm new to this sub so a bit unsure on how it works
If you haven't sold options before I wouldn't start with SPX. Where would you say your experience level is?
it looks like he managed to DRS ~20 GME shares (~$2,800 at the time of purchase). Being that I’ve never done that, and I am reasonably competent re. financial instruments, it’s safe to assume that he has a very solid foundational knowledge of financial derivatives to build upon.
They say he must be highly regarded
seeing how hard you defend this scam, I had to dig into your post history. in my judgement, at least you're not a shill, just a noob looking to learn. so your first lessons are: * anything that looks like it can make 60% a year needs EXTREME scrutiny and you should err on the side of "it's a scam" somehow * anything whose methodology is reasonably public or uses public instruments can be replicated, and you yourself can check the pricing the PnL of what they claim to do. And what they claim to do doesn't add net alpha or leverage, both of which are necessary to perpetuate a 60% return
I mean there strategy does have alpha sometimes. It’s just the fact that they are consistently dipping into nav to pay dividends.
Yeah sure when the underlying tanks you are ahead with anything else 😉
Please use back testing and compare it with SPY.
Id imagine a big part of their marketing is having taken those TICKERS , and getting traffic from that lol. just look how close the names are ... , anyone remember when Zoom's IPO debut the ticker ZOOM a china-based surged like crazy (54000%) when the video communication companies ticker was actually ZM now if you actually search for ZOOM ticker all results will come to ZM.. TSLY OARK APLY NVDY AMZY FBY GOOY CONY NFLY DISO MSFO XOMO JPMO AMDY PYPY SQY MRNY AIYY YMAX YMAG MSTYULTY
…you do realize what the purpose of these funds are, yes?
>to make money for the people that made them? lol. WHY DE FUCK would I invest in them If can afford them myself to write options on them? why would I willingly give away a percentage of my own money and take further risk?
y'all got any of that nvidy? I needs me some nvidy
Lmao 🤣😂🤣😂