Why settle for one stream of income when you can build three?

MSTY, CSPs, and CCs can work together to create a self-funding, compounding income flywheel.

Here’s the full playbook: 🧵 Yield #1: MSTY Distributions for Income + Collateral

MSTY provides consistent income through high monthly distributions. Normally, I DRIP and let it compound.

But the cashflow also functions as soft collateral. It fuels additional yield through options strategies.

Debunking MSTY Myths

The Chief Trading Officer of YieldMax funds, @JayPestrichelli went on @cenaclecapital show to discuss them in detail. Here are some questions he answered:

1. Doesn't MSTY upside have a hard cap due to its covered call strategy?

- MSTY uses call spreads: selling a call while buying a further out-of-the-money call. These allow MSTY to capture MSTR growth if it spikes suddenly (e.g., 10%+ in a day)

- Example: Palantir gapped up 28% overnight, but PLTY's short call spread allowed it to capture ~22–23% upside, avoiding a cap at 5% growth if it only sold a naked call

- While the short call loses value as MSTR rises, the long call gains value. This internal hedge enables more flexibility and quicker repositioning. 2. The yield seems too good to be true. What's the catch?

- If it seems too good to be true, it's likely misunderstood—especially the risk profile.

- MSTY carries concentration risk due to its exposure to one volatile stock (e.g., MicroStrategy).

- Yield is Not Fixed: Distribution rates are based on a snapshot and annualized; they fluctuate with volatility and the underlying price.

- If the underlying declines, the dollar value of the yield decreases even if the rate stays the same. Conversely, if the stock appreciates, income can increase with the same rate due to higher NAV.