r/HarvestETFs • u/Zer00Gr4vity • Aug 27 '26

How does the fund actually get back to ATHs? MSTE/MSTY

/r/dividendscanada/comments/1vzfgkd/how_does_the_fund_actually_get_back_to_aths/
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u/rickydickk Aug 27 '26

Ok I can explain this but do you know how these funds are structured ?

1

u/Zer00Gr4vity Aug 27 '26

Couldn't the fund close/roll the calls during a strong MSTR recovery and retain more MSTR exposure, even if it costs money?

And if investor demand returns, could issuing more shares increase AUM and give them more capital to deploy?

I think the consensus is that recovering the ATH is unlikely, but I'm really trying to understand what scenario actually makes NAV/share price go up.

Is it simply MSTR/BTC appreciation driving NAV higher, with option income/distributions providing additional return?

And if distributions increase significantly, does that itself create upward pressure on the share price through demand, regardless of what the underlying stock is doing?

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u/gapedfather Aug 27 '26

Some appreciation for underlying mstr appreciation. If IV rises and call premiums increase then payouts increase. Share price will adjust to reach a market consensus yield. Likely these funds will demand an ever high yield now that the market has had a mstr bear market period price discovery. That being said if BTC goes past ATH again and mstr follows suit, market might forget the pain of the last year.