IWMY: Likely To Become Insolvent In A Few Years Unless Strategy Changes
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IWMY, a fund known for high-yielding stock investments through options-selling strategies, faces potential insolvency due to its flawed strategy of selling daily in-the-money put options. This approach leads to rapid NAV erosion, making it a risky investment despite positive total returns with dividend reinvestment.
November 06, 2024 | 3:00 am
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IWMY's strategy of selling daily in-the-money put options is causing rapid NAV erosion, making it a risky investment. The fund's declining AUM and unsustainable strategy could lead to insolvency unless changes are made.
IWMY's strategy involves selling daily in-the-money put options, which is leading to rapid NAV erosion. This unsustainable approach, combined with declining AUM, suggests a high risk of insolvency unless the strategy is changed. Despite positive total returns with dividend reinvestment, the fundamental issues make it a risky investment.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100