It’s an investment product so it’s not risk free, but neither is selling your bitcoin.
The most tangible risk is underperforming MSTR just by the nature of running covered calls on a highly volatile stock. But theoretically it has all the risks a security would have.
Monetizing volatility through options trading is not Celsius or FTX gambling on shitcoins despite what ops would say.
Agreed. Monetizing volatility is something that is there to take advantage of
My comment of risky comes from the example given by BH; letting go of 5 bitcoin in order to earn an “income” seems like a bad idea. What if we 5X by eoy? Wouldn’t it have been easier to sell a bit every month and hedge ngu this way?
I dca out every month to take advantage of bitcoin’s price appreciation
Btw I’m freaking retarded so maybe not seeing the upside to it lol
Nah I'm with you.
Better to move 0.5 Bitcoin to the exchange & chip bits off each month. DCA out, so to speak.
Having said that, he owns 50 bitcoin. He's not going to be struggling either way.
Not sure on the CGT over there but I'd be up for a hefty bill come tax time doing it that way.
I'm currently tossing up whether to get a BB loan from LEDN.
I bet he will regret selling those 5 btc if they are soon to be 2.5 mill or even 5 mill lol bc there is no way we stay at these current prices
I had some experience with collateral loans last cycle and was stressful to say the least but if I were to take a loan out, the 85k price seems like a reasonable floor
Personally I’m waiting for interest rates to come down and the collateral ratios to change in our favor. I have a feeling Banks will soon start to offer btc lending services
It sure would be nice to not risk liquidation because of a short dip
below $50k.
You'd think they could handle taking on a little risk when they charge their 12% APR.
The upside is having more bitcoin at the end of the day.
It takes a minute to wrap your head around MSTR and funds that generate income by selling covered calls on MSTR, but the data is crystal clear so far. Not saying everyone needs to do this, but you also can’t ignore the performance and benefits these type of products offer.
Fr 🔥
If Bitcoin 5X, then MSTR will 10X and MSTY will ~7X with dividends reinvested.
Anyone that was living off Bitcoin when MSTY came out in February 2024 would have more Bitcoin today if they had put a portion into MSTY than they would if they had sold Bitcoin to pay expenses.
I haven’t updated my spreadsheet looking into this for a couple of months, but with this price action, the numbers will break even more in MSTY’s favor, is my guess.
Bro the more I look at msty, the more I like it. I could easily buy 1000 shares and create a monthly income of about $3K 🤔
Maybe?
I’m telling you. Once the implied volatility of MSTR ramps up, I can see the dividends going back up to $3/share and higher.
Their average distribution is ~$2.42/share, so if you want to average $3k/month you need 1,240 shares worth $24.6k rn
Bro, heck yeah. I could put 1/2 a coin and let it make me an income 🔥
Is there any downsides to it?
Exactly
From the point of view of needing income, the most obvious downside or caveat is that the fund relies on MSTR being a volatile asset and them growing. But if you’re bullish on Bitcoin, then it’s easy to be bullish on MSTR and MSTY/IMST by extension.
The biggest downside is that it will likely underperform MSTR. This matters if you are looking at this as a long-term investment, but if you use this product for income (as intended), then the trade-off is worth it.
