ULTY's Underperforming Strategy: A High-Risk, Low-Reward Gamble
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YieldMax Ultra Option Income Strategy ETF (ULTY) offers a high distribution yield but has underperformed with only 2.4% total performance since inception. The fund's strategy involves selling options on volatile stocks, leading to high premiums but significant principal erosion. ULTY's approach contrasts with more conservative ETFs like JEPI and QYLD.
November 12, 2024 | 5:45 am
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YieldMax Ultra Option Income Strategy ETF (ULTY) offers a high distribution yield but has underperformed with only 2.4% total performance since inception. The fund's strategy involves selling options on volatile stocks, leading to high premiums but significant principal erosion.
ULTY's strategy of selling options on volatile stocks results in high premiums but also significant principal erosion, leading to underperformance. This high-risk approach is likely to continue affecting its stock price negatively in the short term.
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