I’m Ready to Throw in the Towel on MSTY and ULTY—Should I Wait for a Bounce First?

It’s tempting to think about throwing in the towel on an ETF that has so much negative momentum riding behind it. However, when it comes to the YieldMax ETFs, such as the YieldMax MSTR Option Income Strategy ETF (NYSEARCA:MSTY) and the YieldMax Ultra Option Income Strategy ETF (NYSEARCA:ULTY), I do think one has to step back and consider how such intriguing yield-boosting ETFs fit into their portfolio.

Are such popular yield heavyweights the basis of a specific trade? Or are you looking to just increase the average yield of your personal portfolio? Either way, capital losses and negative momentum have been the name of the game, and they could continue to be over the foreseeable future. If you look at the charts of either YieldMax ETF, you’ll pretty much see a line that goes straight down.

In any case, if you’re an investor who’s wondering if you should buy the dip or get out of the YieldMax MSTR Option Income Strategy ETF or the YieldMax Ultra Option Income Strategy ETF after such a volatile start to November, you’re not alone.

MSTY and ULTY have been gravitating lower and fast!

Of course, if you zoom in a bit, you’ll see that there have actually been periods of strength, but, for the most part, they’ve either been limited or short-lived. Either way, I view both ETFs as still worth pursuing once volatility looks to surge higher as we head into the midpoint of the fourth and final quarter of 2025.

While the fast-falling ETFs are definitely not for the faint of heart, I do think that braving the downside, especially if a market-wide growth scare causes a broad sell-off in the stock and crypto markets, might be worth considering for courageous traders who have a goal in mind.

At the time of writing, the YieldMax MSTR Option Income Strategy ETF, which provides an income boost via exposure to a company that buys Bitcoin named Strategy (NASDAQ:MSTR | MSTR Price Prediction), formerly Microstrategy, seems like a very interesting bet if you’re a big believer that the latest turbulence in Bitcoin and, in turn, Strategy shares, is nothing more than a buying opportunity.

Right now, the YieldMax MSTR Option Income Strategy ETF pays a huge 87.2% distribution rate. There’s a lot of yield to be had that may be more than able to offset the magnitude of capital losses moving forward. But, of course, traders will need to time their entry right.

Not panicking is key to doing well with such yield-heavy ETFs

Either way, not making a panic-driven decision seems like the best move, especially after the latest slide in shares of both YieldMax ETFs. Though it’s hard to tell when the bounces will come, I do think that playing the long game and implementing a dollar-cost averaging approach could help reduce the considerable amount of risk involved with trading such ETFs that tend to be choppy, even when the markets aren’t.

If you’re confident that Bitcoin and its derivatives will persevere amid increased market volatility, perhaps the YieldMax MSTR Option Income Strategy ETF could outdo the YieldMax Ultra Option Income Strategy ETF. And, on the flip side, if you’re a bigger fan of playing the hyper-growth stocks, the YieldMax Ultra Option Income Strategy ETF might be the better bet at such a nail-biting time. Indeed, perhaps we won’t be in for a repeat of the selling we saw during Liberation Day.

Either way, I’d strongly suggest contacting a financial advisor for their thoughts on playing hyper-volatile YieldMax ETFs and explaining your goals. Whether you’re looking for a quick buck or a yield boost, the right approach and mindset could make all the difference. And if you’re in a panic over negative momentum, perhaps reducing one’s exposure gradually could make some sense.