ROBO
2.1K posts


@CryptoKaleo Got high conviction our @pudgypenguins will reach 80B MC this year. It’s listed on almost every major exchange and great support from entire world
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@Moon_Boy_Ranger Only token with such great volume and we are heading $1 by December
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@Alice_MiaX ULTY is safe haven than Msty
If market crashes , everything falls
And MSTy falls hard and recover takes long. On other hand ULTY do fall but recovery and dividends distribution is consistent
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Clearing Up Confusion on $ULTY ETF: Does It Protect Against Crashes with Puts or Collars?
Hey everyone, there's a lot of confusion about the YieldMax Ultra Option Income Strategy ETF $ULTY and whether it shields your holdings from stock crashes using puts or collars.
Based solely on the fund's website and prospectus, let's break it down simply and specifically. $ULTY is an income-focused ETF, not a pure hedge fund—its main goal is generating monthly distributions via options premiums, with secondary exposure to underlying stocks' price moves.
Key Strategies in $ULTY (from Prospectus)
Covered Calls
– Sells calls on held stocks for income.
– Caps upside but offers NO downside protection.
– If the stock crashes, you eat the loss (premium helps a bit, but not much).
Cash-Secured Puts
– Sells puts with cash ready to buy if assigned.
– Income from premiums, but in a crash, you might buy the stock at a bad price.
– Amplifies risk, doesn’t protect.
Credit Spreads & Diagonal/Calendar Spreads
– Generate income via time decay/volatility.
– Limited loss on the options side, but no crash protection for the underlying stock.
Collars
– This is where protection comes in!
– $ULTY sells a call (for income) and buys a put (using part of that premium).
– The put sets a floor—if the stock crashes below the put strike, you can sell at that price, limiting losses.
– But it's not foolproof: downside is capped (e.g., to 5–10% depending on strikes), not eliminated.
Does It Protect from Crashes?
With Puts?
– Partially. Puts are bought mainly in collars (not standalone).
– They hedge by providing a sell-floor in downturns.
– But sold puts (cash-secured) can force buys during crashes, increasing exposure.
With Collars?
– Yes, to an extent.
– Collars create a "band" around the price—limits big losses from crashes but also caps gains.
– Prospectus says strikes are often at-the-money, with options rolling monthly (1–12 months via FLEX options).
Overall?
– Not fully. $ULTY can still crash with the market.
– Prospectus warns of "substantial downside" from derivatives, leverage risks, and NAV erosion (distributions often return capital).
– In extreme drops, premiums won’t offset everything, and focused holdings (15–30 stocks) amplify volatility.
Trade-Off
High yields (target 50–150% annualized, per website)
But high risk.
Not for protecting your whole portfolio—it's income-first.
Always read the full prospectus: strategies can shift, no guarantees.
Bottom Line
In a crash like 2025’s, collars/puts cap some losses (e.g., turning 25% drops into 5–10%), but ULTY can still tank 30%+ if volatility spikes costs or underlyings crash hard.
Great for income in stable times, risky in downturns—prospectus warns of “substantial downside.” Not a full shield!
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@DevotedDividend How to start this dividend income strategy and what buys would be initial
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@Alice_MiaX For these weekly lets hope starting launch price around $25
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What do we think about this 𝕏 investors?
Amplified weekly returns…
Roundhill Investments@roundhill
Next week we're launching our first five WeeklyPay™ ETFs designed to pay weekly income distributions while targeting amplified weekly returns linked to high-growth stocks. Stay tuned!
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@Alice_MiaX To some extent I agree there is slight nav erosion but as investors we need to be smart and buy only on dips.
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@trades_hayes Yes, I was experimenting with Grok, testing strategies like buying at specific times and reinvesting dividends on Mondays to see if it made a difference. Turns out he was off, so I won’t be using him again, haha.
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I’ve been running all the historical data on $QDTE through Grok, analyzing its price history and dividend payouts. Specifically focusing on what the returns would look like if you had bought at the peak. I’m also factoring in the strategy of getting paid out on Fridays and reinvesting those dividends back into the stock on Mondays.
If you invested $20,000 in QDTE at its high of $46.10 on March 26, 2024, buying 433 shares, and reinvested the dividends every Monday following each Friday's payout, your investment would have grown to approximately 447 shares by January 9, 2025, due to dividend reinvestments. However, with the stock's closing price dropping to $39.10 by that date, your investment would be worth about $17,477.70, reflecting a decrease in share value of around $2,522.30. Despite collecting and reinvesting dividends totaling roughly $2,022.30, the overall return would be negative due to the significant drop in share price, highlighting the impact of market volatility on investment returns.
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@CrashiusClay69 Get ready as exchanges waiting on right moment to launch
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