I'm Buying 7,000 Shares of ULTY Monday – Here's Why I'm All In! David MoadelSeptember 4, 2025 at 11:30 PM 0 Key Points There are potential hazards when making a YOLO (You Only Live Once) trade with the ULTY ETF. It's fine to hold a small stake in ULTY shares as long as you monitor your position.
- - I'm Buying 7,000 Shares of ULTY Monday – Here's Why I'm All In!
David MoadelSeptember 4, 2025 at 11:30 PM
0
Key Points -
There are potential hazards when making a YOLO (You Only Live Once) trade with the ULTY ETF.
It's fine to hold a small stake in ULTY shares as long as you monitor your position.
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They call it the ultimate YOLO (You Only Live Once) trade: buy 7,000 shares of the YieldMax Ultra Option Income Strategy ETF (NYSEARCA:ULTY) and, just maybe, you could double your money or even better. YieldMax's ULTY ETF is generating a whole lot of buzz on Wall Street, so why not just dedicate your entire portfolio to this high-potential fund?
This sounds like a reasonable plan if you're intrigued by ULTY's sky-high yield. Don't buy any shares until you've learned the facts about this fund, though, as the YieldMax Ultra Option Income Strategy ETF isn't necessarily your golden ticket to untold riches.
What If You Bought 7,000 ULTY Shares on Monday?
After spotting a Reddit post complaining about "cry babies over the ULTY price drop" and vowing to buy "7,000 shares of ULTY Monday," I considered what might happen if someone actually put this plan into action next week (as opposed to the time of the aforementioned Reddit posting). It's fascinating to consider the possible results, good or bad, of such a trade if one made it on the morning of Monday, September 8.
It's difficult to know what the exact price of the YieldMax Ultra Option Income Strategy ETF will be on Monday since it's a fast-moving target. However, if ULTY happens to be trading at around $5.50 on Monday, then buying 7,000 shares would cost you approximately $38,500.
Thus, if you had an investment account with $40,000 in cash, then purchasing 7,000 shares of the YieldMax Ultra Option Income Strategy ETF would truly be a YOLO trade. It's a huge gamble, though I can understand why someone might want to do this.
The YieldMax Ultra Option Income Strategy ETF is a somewhat diversified fund. I downloaded the fund's full holdings list and found 23 different stocks and/or options on those stocks.
These stocks, for the most part, tend to be volatile at times. A few examples are Applovin (NASDAQ:APP), Rocket Lab USA (NASDAQ:RKLB), Oklo (NYSE:OKLO), Microstrategy (NASDAQ:MSTR), Affirm Holdings (NASDAQ:AFRM), Reddit (NYSE:RDDT), and IonQ (NYSE:IONQ).
The YieldMax Ultra Option Income Strategy ETF leverages the volatility of these stocks by selling covered call options, among other strategies, to generate income. That's how the ULTY ETF is able to pay investors cash distributions each and every week.
Thus, if you bought 7,000 shares of the YieldMax Ultra Option Income Strategy ETF on Monday, you'd probably start seeing cash payouts in your account in a matter of days. This would undoubtedly provide a thrill factor that you won't get with the many ETFs that only pay dividends once every three months.
Huge Yield From This YieldMax Fund
The last time I checked, the YieldMax Ultra Option Income Strategy ETF advertised an expected annualized distribution rate of 88.6%. This figure often changes, but lately it's been above 80% or even above 90%.
And again, the ULTY ETF pays out its distributions on a weekly basis. Hence, if you reinvested every weekly payment back into the fund, you might conceivably achieve 100% or greater annual returns due to the compounding effect.
Or at least, that's what someone might hope for if he or she made a YOLO trade with 7,000 shares of the YieldMax Ultra Option Income Strategy ETF. It's easy to understand why someone would see the huge expected yield for ULTY and would want to get started making money on Monday.
Sorry, but No Guaranteed Profits
The reason I personally wouldn't dedicate nearly an entire $40,000 account to the YieldMax Ultra Option Income Strategy ETF is that its share price could erode over the long term. Even if you're collecting sizable cash distributions every week with ULTY, your profit-and-loss profile will suffer if the share price drops.
One thing to bear in mind is that the YieldMax Ultra Option Income Strategy ETF automatically deducts 1.3% worth of annualized operating expenses from the share price. That's important, but there's an even more impactful factor to consider that could weigh heavily on ULTY's share price.
The same options-trading strategies, and especially the selling of covered call options, that enable ULTY's huge yield could also drag down its share price. In fact, it's possible for the stock prices of Applovin, Rocket Lab USA, Oklo, etc., to go up while the YieldMax Ultra Option Income Strategy ETF's share price barely rises or even goes down.
To put it another way, there are no guaranteed profits with the ULTY ETF despite its big yield and frequent distributions. The share-price erosion issue is undeniable as the YieldMax Ultra Option Income Strategy ETF's share price fell nearly 49% over the past year.
Buying ULTY on Monday: The Takeaway
It's fine to purchase a few ULTY shares, but buying 7,000 shares would involve too much YOLO and not enough caution. Also, carefully monitor the share price and distribution yield of the YieldMax Ultra Option Income Strategy ETF.
Finally, be sure to use a high-quality broker when buying the YieldMax Ultra Option Income Strategy ETF. That way, you can easily keep track of your ULTY position and adjust it as needed.
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