About YieldMax TSLA Option Income Strategy ETF
Introducing the YieldMax TSLA ETF (TSLY). It's not your typical run-of-the-mill investing fad; it's a sophisticated, actively managed fund designed to maximize income potential.
Here's how it works with YieldMax: 🚀
YieldMax strategically utilizes covered call options (more on this soon) on Tesla stock to generate a monthly income for you. By leveraging this innovative strategy, you have the opportunity to enjoy a very high monthly income.
Imagine renting out your shares' upside potential in exchange for cash. It's a thrilling trade-off that requires a keen eye on the market and nerves of steel.
But beware, this rollercoaster of options trading can make or break fortunes in an instant. Strap in tight, because with TSLY, you're in for an exhilarating adventure!
TSLY Investment Objective
The Fund primarily focuses its investments on seeking current profits. The fund's secondary investment objective for TSLA is to seek exposure to Tesla Inc's stock within specific limitations, aiming to maximize potential investment profit.
What are covered call options
You've heard about options, but what are covered call options, anyway? It's like a one-two-punch strategy for your portfolio. First, you own a stock—like a slice of Tesla's electric pie. Then, you sell someone else the right, but not the obligation, to buy that slice from you at a set price within a certain timeframe.
Sure, it's not all rainbows and high-fives. If Tesla's stock skyrockets and exceeds the strike price, you might miss out on potential investment gains. Tough choices, right? But if you seek regular current income and can handle limiting your "what if" gains, the TSLY ETF puts you in control with a time-tested strategy.
This isn't charity; you're not giving away this opportunity for free. The buyer pays the share price and you receive a premium upfront. That's cash in your pocket now, no matter how the market moves. And here's the kicker: if the stock doesn't reach the strike price by expiration, you still keep your shares and the premium. It's like getting paid to potentially sell something you own.
Considering your investment objective, covered call options could be an interesting addition to your investment strategy, even in an adverse market.
Learn more about covered calls in this YouTube video: link
How much does TSLY pay in dividends?
As of Feb 6, 2024, TSLY pays a dividend yield of 96% with a $0.72 dividend amount per share. Investors can explore TSLY's dividend history here.
How safe is YieldMax TSLA ETF?
When it comes to investing, there's no guarantee of never getting cold. This is especially true with TSLY, a non-diversified fund focused solely on Tesla's common stock. Putting all your eggs in one basket amplifies both the highs and lows. If Tesla prospers, you may celebrate, but if it doesn't, you shoulder that fallout alone. TSLY caps your highs, so you won't pocket additional gains if Tesla's stock value soars beyond set limits. Investments require strategic plays and understanding your risk tolerance. TSLY tempts with dividends and income from covered calls but also presents potential for loss. If volatility isn't your idea of fun and you prefer a diverse portfolio safety net, YieldMax TSLA ETF may not align with your investment style. Invest informed, invest with eyes open.