Investment Q&A

Q: MSTY is getting close to its 52 week low and of course showing a massive yield. What’s your assessment of the risk reward at this level?

How much if at all has the monthly dividend changed since the beginning?

Can you explain the WHY behind the consistent decline in share value?

Is it Saylor’s intention for this to be a long term stock or is this some kind of borderline legal Ponzi scheme.

Given this is still early days (presumably) for BTC I would hope he is thinking long term in terms of ensuring his credibility and that of bitcoin.

Q: Hello,

What are your thoughts on having those ETF/MF in ones portfolio with the purpose of generating a stable monthly dividend? Also, I am interested in your thoughts regarding MSTY (US) ETF which appears to pay a dividend of 127.45%. How sustainable is this rate. Looking forward to your thoughts.

Q: It seems you don't have it in your companies list, the question is, if one will buy it today will they receive the dividend? What do you think about the strategy in general?

Q: My question is concerning the NYSE traded ETF MSTY as well as the MSTY.CA ETF. Mike Khouw recommended the NY traded ETF as not so much a play on Microstrategy as it is a play on the options trading volatility on that particular stock. Could you provide your analysis and opinion regarding this ETF. Could you also compare differences and similarities of the NYSE ETF and the
Canadian one. Lastly would you recommend either for an income focused investor? Thank you as always.

Q: Hello. I was going to ask you about MSTY:US, one of YieldMax ETFs. It creates synthetic long exposure, then writes covered calls to generate income. I specifically wanted to ask you about how distributions would be treated from a tax perspective as a Canadian. The distributions are options premiums. So would the distributions then be treated as capital gains, or as US dividends? I assume there would also be a 15% US withholding tax.

When I entered the symbol to ask this question, I discovered that MSTY:CA is a Canadian equivalent, although they only have 50% exposure. Do you know anything about the company Harvest? I had never heard of them. Are they an established and reputable company? How would distributions from MSTY:CA be treated from a tax perspective? Thanks for your help

Q: I've seen these high yielding products before and just noticed that a few are now available on the TSX. I'm curious as to what your thoughts are on this type of product and how they work. I noticed the yields are pretty extreme and particularly on MSTY. I'm assuming this is maybe due to the high option premiums and volatility on the underlying MSTR?
Is there any rationale to a short term hold in this type of thing if you believe there's at least short term upside in the underlying?
(I considered buying MSTR last year but put it off. I think it maybe has a few months to a year of upside still if the Bitcoin cycle continues. Being able to buy in MSTY in $C is a plus and avoids exchange rate fees if buying and selling within a few months/year).

Thanks!