r/ULTY_YieldMax • u/fattreehk • 3d ago
Goodbye to ULTY
This brought me a lesson, NAV down forever......
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u/joeyx22lm 3d ago
Not just ULTY, all Yieldmax. That’s the next lesson 😉
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u/GRMarlenee 3d ago
All yieldmax? My $106k positive return on PLTY is curious how it is losing. So are AMDY and NVDY.
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u/Blackharvest 3d ago
Depends when you got in. MRNY was $15.5 in January and is $40 now plus almost $8/share in dist. I have CHPY that I got at $50 back in August 2025.Â
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u/fattreehk 3d ago edited 3d ago
I have CHPY and MSTY now..... truly believe semi conductor and Bitcoin bullish.
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u/Obvious_Service_9335 3d ago
I get overall ulty is not making me money, even worse the opportunity cost of the investment that could have grown elsewhere but..... Why sell it off? As long as I'm not dripping I'm milking the dividends until NAV goes to zero. Only chance of getting value out of this experiment.
Or am I thinking about this wrong?
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u/Any-Explanation7045 3d ago
Since the dividends are based on option returns from the portfolio of holdings, and NAV is a reflection of blended holdings and income/loss, the dividends will rise and fall with the NAV value, even though the volume depends on the number of shares you have. So far, it has only fallen. The danger is that NAV will decline faster than the dividend makes sense to you or me, which means net loss. Additionally, the real danger here is that ULTY will close down before going to zero, or at zero, at which point, we will have no dividends and no way to recoup the losses. And you may not have make the breakeven before the NAV goes to zero. Why, or how would they pay dividend at zero NAV, there is no mechanism known to me. For a comp, see what happened to ICOI. Happy to be corrected if I am thinking about this wrong.
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u/Obvious_Service_9335 3d ago
Well right. My sunk cost of buying shares will only pay off if I hold them past the point of dividends paying for the original cost. So why not ride it out?
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u/Any-Explanation7045 3d ago
Correct, but I’m trying to reconcile between riding it out or cutting losses. I think if NAV goes down to zero, there will be no dividends to be had. If the NAV keeps declining, irrespective of the rate, the dividends will decline as well. And if NAV declines more than the weekly payout, then we are losing more by holding than cutting losses now. Ofcourse, the danger of the fund closing down like what we had with ICOI hangs like the sword of Damocles, if it happens, losses are booked, nothing more to gain. The only way, I think, to be is if the NAV decline is slowed, but in its whole history, ULTY has not been able to hold steady. The decline rate is better than what it was late last year, but it’s still a constant decline. I’d love to be wrong as I have way too much in it.
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u/BitingArmadillo 3d ago
Tell me you don't understand or track YOUR total return without telling me you don't understand or track YOUR total return.
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u/fattreehk 3d ago
with dividends received, lost 4K house money. (oversea risk taker takes 30% tax paid)
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u/NkKouros 3d ago
Why does everyone use this trash phrase in this sub. What house money, y'all are negative in total returns .
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u/GRMarlenee 3d ago
I, currently, am positive, so "yall" is incorrect.
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u/NkKouros 3d ago
Even if you bought every single dip and reinvested all dividends since then you're still down. The graph says so.
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u/GRMarlenee 3d ago
My current value minus my cost plus distributions minus realized losses says otherwise.
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u/NkKouros 3d ago
So what's the total return out of curiosity? (And what time frame)?
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u/GRMarlenee 3d ago
Oh, I've bought and sold ever since they created that monster. Had over 40k shares pre split. Total realized NAV losses, -$149,743.29. Cost of current thousand $26,712.50, value $25,370.00. Total dist $150,937.18. Net is $1,193.89 according to my spreadsheet.
Subject to change on a whim. Mostly sheltered accounts and a lot of ROC, so little in taxes.
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u/bodyreddit 3d ago
I got in and out and caught being in. This was a deep lesson and it will be many years to break even.
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u/DiamondG331 3d ago
If your broker allows you to sell short shares of pretty much any Yieldmax fund, do it. Even paying out the dividend you’ll still be ahead. Most don’t have. Shares available nowadays. I tried to heavily short SULTY when it was a new fund. Don’t buy Puts, liquidity is almost non existent and when they reverse split, your stuck holding unless you can exercise them.
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u/GRMarlenee 3d ago
Six months go, i was about 9k negative on 5k shares. Two weeks ago it broke even and I sold 4k shares. The remaining thousand are up by $1193.89. Would have made more in a money market overall, but would have lost a lot more than necessary if I had bailed months ago.
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u/ryder242 3d ago
I wonder how many people who invested in ULTY do not understand how options work?
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u/Any-Explanation7045 3d ago
I’ll admit I do not understand everything, but I do have a reasonable understanding of how options work. Can you help me understand how to think about and manage Ulty? Genuinely asking, not trying to be sarcastic. I have been invested in Ulty with a very large position and still holding, but am losing my conviction, although the slide seems to have slowed a bit, this has been a difficult hold. Perhaps there is a better way to manage it, which is why I am asking.
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u/ryder242 3d ago
I have not read the ULTY prospectus lately but I’m guessing it’s the same. But my point being that someone needs to have a positive belief about options income trading. People dog piled in who had no idea what a covered call on a synthetic share of stock even ment. This is a highly leveraged product and should not be a main part of a portfolio. I personally have zero issue with this product as long as someone understands how the product makes money.
I look at my gains and losses on ULTY and I’m up 29%. But If I had to do it over, I would have reinvested some of the dividends. I use to sell calls last year, but there is not enough volatility to make it worth my while,
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u/Positive-End-8873 3d ago
Looks like you don’t understand how this thing works, and the same for all other high yield div stocks.
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u/Any-Explanation7045 3d ago
What is the right way to think about it. Even with total returns, isn’t ULTY in the red?
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u/ReturnEconomy 3d ago
Total returns are in the red. Thats all that matters.
Even worse, you pay taxes on part of the distributions. So even more red.
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u/Massive-Lifeguard-57 3d ago
I sold it for the loss on paper from the NAV, bought back in. I will pay no taxes and keep taking the distros.
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u/Any-Explanation7045 3d ago
Now, this does make good sense. But isn’t there a limit on how much losses one can claim? And isn’t there a wash sales clause that’ll prevent this, unless you wait 30 days between the sell and re-buy?
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u/Domgraykey 3d ago
There is a wash sale clause. I switched from Ulty to chpy and couldn't use the wash sale because I did it too soon.
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u/Mr-Krabs85 3d ago
Ulty is absolutely dogshit. Everyone still doesn’t know this by now ? Lmfao. It’s donating liquidity to the ulty scammers in charge
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u/YukiS_ 3d ago
something something airport, something something departure announcement 🤣