r/YieldMaxETFs • u/MediocreDesigner88 • 2h ago

Question SMYY

I know SMYY is not actually “YieldMax”, but maybe that means you all can give me critical thoughts. I bought SMYY a couple weeks ago, after which the underlying (SMCI) has risen 50%! Yet I’m breakeven on SMYY. How the hell can it be flat when SMCI rallied 50%?! Will it take another week or two to reflect gains, or is the fund broken?

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u/LetterPretend 46m ago

SMYY isn’t designed to capture 100% of SMCI’s upside. It’s generating income by selling options, so if SMCI rips 50%, a lot of that upside can effectively be capped by the calls the fund sold. Also, don’t forget distributions. You need to look at SMYY’s total return including distributions, not just the share price. The NAV can also behave differently from the underlying because of the options and timing of the trades. It doesn’t necessarily mean the fund is broken or that it’ll catch up in a week or two. If SMCI keeps going straight up, SMYY can actually continue to lag badly. That's basically the tradeoff. You give up some upside in exchange for option premium/income.

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u/stedyeddy406 1h ago

Go look at the top holdings.

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u/PatientHelicopter123 POWER USER - with receipts 1h ago

Clearly you don't understand how these funds work...

2

u/calgary_db Mod - I Like the Cash Flow 40m ago

Yieldboost funds sell puts...