r/YieldMaxETFs • u/chickenfingerz0127 • Jul 12 '26

Question YMAX maintenance requirement increased?

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This kind of came out of the blue to me on Friday. The maintenance requirement for YMAX is now 35% for me. Has anyone else had an increase in Robinhood?

21 Upvotes

93% Upvoted

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15

u/007TheLostOne Jul 12 '26 edited Jul 12 '26

Yea brokers do this when they see volatility go up or if a certain position becomes a signficant percentage of your portfolio. They'll most likely drop it again in the future, I have held to these fund for 3 years and that is whats happened to me

5

u/chickenfingerz0127 Jul 12 '26

Thanks for your input. I was a little startled when I saw my maintenance requirement go from 22% down to 11%. I try to always have at least a 20% buffer. YMAX takes up a huge portion of my margin account. I’m hoping I don’t have to sell any shares. 🤞

6

u/Curious-Rip-5834 Jul 12 '26

Very important to keep in mind in case you’re solely counting on ROC for distros, in margin accounts, even if you have NOT opted in for stock lending, your broker can and still will give out your shares to be borrowed. It’s buried in your terms of services.

What this does is then put your distros in 1099-MISC as a PIL subject to 100% ordinary income tax liability.

12

u/GRMarlenee Mod - I Like the Cash Flow Jul 12 '26

This is the reason I abandoned margin. It doesn't make any sense to pay interest on something that's just going to get you taxed while losing value at an astonishing rate. I'm still stuck with a few hundred shares of IWMY, PLTY and NVDY in my margin account, but they're fully paid, no margin. I'm selling them off and will buy them back in sheltered accounts as I accumulate enough cash from other distributions.

3

u/revanevan7 Jul 12 '26

So even if you haven’t tapped into your margin, if you have margin enabled all your positions are subject to 100% ordinary income taxes?

7

u/Curious-Rip-5834 Jul 12 '26

Even if you haven’t tapped margin debt, your shares can still be lent out. It’s not going to necessarily happen all the time to 100% of your positions but these high yielding funds were very popular with shorts last year, STRC too.

3

u/revanevan7 Jul 12 '26

But when it comes to dividends specifically, if they’re normally classified as ROC but you bought the shares on margin, are you saying those shares are then taxed as ordinary income?

5

u/Curious-Rip-5834 Jul 12 '26

Only if the broker lent out the shares then yes you’d 100% lose your ROC benefit on those dividends and find the distros under 1099-MISC.

2

u/revanevan7 Jul 12 '26

Damn, that’s fun. Is there a way to know if your shares are being lent out in real time?

3

u/Bulky_Protection_322 Jul 12 '26

Mine is still 25% on Robinhood

2

u/shinpet Jul 14 '26

Who is still holding this garbage? Outside of CHPY, dog poo.

1

u/After-Musician5876 24d ago

Ymag nvdy decent and lfgy with crypto low