COIN - CONY Offers An Alternative Income Strategy For Investments In COIN
2024-07-15 08:37:36 ET
Summary
- YieldMax COIN Option Income strategy ETF actively manages a derivative book of Coinbase to provide monthly income for shareholders.
- The ETF sells call options and purchases put options on COIN, creating a synthetic short strategy with treasuries as collateral.
- CONY offers a unique opportunity to passively invest in an actively managed options strategy for COIN, recommended with a BUY rating and upwards of 3% allocation.
YieldMax COIN Option Income strategy ETF ( CONY ) is a leveraged ETF that seeks to provide returns by actively managing a derivative book of Coinbase ( COIN ). YieldMax’s goal is to create monthly income for shareholders through an actively managed options strategy with the intent of distributing excess earnings on a monthly basis. The premise behind the ETF is to provide monthly income for investors of companies that do not provide distributions or dividends. Each individual ETF holds a single-name strategy, or in the case of CONY, options of COIN. This strategy is significantly different than leveraged index ETFs like ( TQQQ ) in which the goal of the fund is to maximize returns as opposed to a passive strategy in achieving 3x daily returns over the index. Given the relatively hedged strategy, I recommend CONY with a BUY rating with a recommended allocation of no greater than 3% within an equity or alternative strategy portfolio....
CONY Offers An Alternative Income Strategy For Investments In COIN