AMDY: Roughly 50% Yield On AI

seekingalpha06-09

Monty Rakusen Looking for high-yield AI for your portfolio? As we noted in our recent article about NVIDIA (NVDA) and The YieldMax NVDA Option Income Strategy ETF (NVDY), AI has been a hot topic over ...

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As we noted in our recent article about NVIDIA (NVDA) and The YieldMax NVDA Option Income Strategy ETF (NVDY), AI has been a hot topic over ...</p>\n\n<a href=\"https://seekingalpha.com/article/4698079-amdy-roughly-50-percent-yield-on-ai\">Source Link</a>\n\n</div>\n","source":"seekingalpha_fund","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMDY: Roughly 50% Yield On AI</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMDY: Roughly 50% Yield On AI\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-09 21:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4698079-amdy-roughly-50-percent-yield-on-ai><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Monty Rakusen Looking for high-yield AI for your portfolio? As we noted in our recent article about NVIDIA (NVDA) and The YieldMax NVDA Option Income Strategy ETF (NVDY), AI has been a hot topic over ...</p>\n\n<a href=\"https://seekingalpha.com/article/4698079-amdy-roughly-50-percent-yield-on-ai\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"GB00BDT5M118.USD","symbol_name":"天利环球扩展Alpha基金A Acc","start_time":0,"source_url":"https://seekingalpha.com/article/4698079-amdy-roughly-50-percent-yield-on-ai","article_id":"2442857879","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/556415433/image_556415433.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2442857879","pubTimestamp":1717938900,"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"Monty Rakusen Looking for high-yield AI for your portfolio?","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","AMDY":"YieldMax AMD Option Income Strategy ETF","LU1242518857.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"I\" (USD) ACC","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","GFS":"GLOBALFOUNDRIES Inc.","LU1989764664.SGD":"CPR Invest - Global Disruptive Opportunities A2 Acc SGD-H","NVDY":"YIELDMAX NVDA OPTION INCOME STRATEGY ETF","IE00BMPRXR70.SGD":"Neuberger Berman 5G Connectivity A Acc SGD-H","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","BK4554":"元宇宙及AR概念","BK4532":"文艺复兴科技持仓","AMD":"美国超微公司","LU0109392836.USD":"富兰克林科技股A","LU0353189763.USD":"ALLSPRING  US ALL CAP GROWTH FUND \"I\" (USD) ACC","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","LU1242518931.SGD":"Fullerton Lux Funds - Asia Absolute Alpha A Acc SGD","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4587":"ChatGPT概念","LU0320765059.SGD":"FTIF - Franklin US Opportunities A Acc SGD","BK4566":"资本集团","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","NVDA":"英伟达","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","AMD.AU":"Arrow Minerals Ltd","BK4527":"明星科技股","BK4543":"AI","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","LU0889565833.HKD":"FRANKLIN TECHNOLOGY \"A\" (HKD) ACC","BK7504":"锂钴概念","BK4141":"半导体产品","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0109391861.USD":"富兰克林美国机遇基金A Acc","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","BK4549":"软银资本持仓","FDN":"First Trust Dow Jones Internet I"},"translate_title":"AMDY：人工智能收益率约为50%","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMD.AU":1,"US7Y.BOND":1,"US6M.BOND":1,"US5Y.BOND":1,"US3Y.BOND":1,"US30Y.BOND":1,"US2Y.BOND":1,"US12M.BOND":1,"US10Y.BOND":1,"NVDY":1,"NVDA":1,"AMD":1,"AMDY":1,"FDN":0.9,"GFS":0.9},"content_text":"Monty Rakusen Looking for high-yield AI for your portfolio? As we noted in our recent article about NVIDIA (NVDA) and The YieldMax NVDA Option Income Strategy ETF (NVDY), AI has been a hot topic over the past year. There are several players in the AI field, and semiconductor manufacturer Advanced Micro Devices, Inc. (AMD) has also been sharing in the action. The YieldMax AMD Option Income Strategy ETF (NYSEARCA:AMDY) is a relatively new ETF, which has been trading since 9/19/23. Fund Profile: AMDY uses options strategies to generate income on AMD. These include synthetic long exposure to AMD, writing covered calls on AMD, and using US Treasuries for collateral and income. The fund caught a break on the treasuries since rates have been much higher over the past year. Writing/selling covered calls limits the amount of upside price gain participation, in return for receiving call option premiums. AMDY site  \"1. To achieve a synthetic long exposure to AMD, the Fund will buy AMD call options and, simultaneously, sell AMD put options to try to replicate the price movements of AMD. The call options purchased by the Fund and the put options sold by the Fund will generally have one-month to six-month terms and strike prices that are approximately equal to the then-current share price of AMD at the time the contracts are purchased and sold, respectively. The combination of the long call options and sold put options provides the Fund with indirect investment exposure equal to approximately 100% of AMD for the duration of the applicable options exposure. 2. As part of its strategy, the Fund will write (sell) call option contracts on AMD to generate income. Since the Fund does not directly own AMD, these written call options will be sold short. In this strategy, the call options written (sold) by the Fund will generally have an expiration of one month or less (the “Call Period”), and generally have a strike price that is approximately 0%-15% above the then-current AMD share price. 3. The Fund will hold short-term U.S. Treasury securities as collateral in connection with the Fund’s synthetic covered call strategy.\" (AMDY site.)  AMDY's long call option and short put option positions run from 1 to 6-month terms, while its short call options expire in 1 month or less. Its Treasury positions mature in 6 to 24 months: AMDY site Tidal Investments LLC serves as investment adviser to the Fund, and ZEGA Financial, LLC serves as the investment sub-adviser to the Fund. Risks: As part of the Fund’s investment objective, the Fund seeks to provide current monthly income. There is no assurance that the Fund will make a distribution in any given month. If the Fund does make distributions, the amounts of such distributions will likely vary greatly from one distribution to the next. Additionally, the monthly distributions, if any, may consist of returns of capital, which would decrease the Fund’s NAV and trading price over time. The AMDY prospectus summary lists the various risks associated with the fund, on pages 5–9. Dividends: AMDY pays variable monthly distributions, based upon the AMD option premiums it receives. These monthly payouts have ranged from $.44 to $1.67 since its inception in 2023. Management declares the monthly distributions the day before the ex-dividend date, with the pay date generally being 2 days after they declare. AMDY site AMDY's most recent monthly distribution was $.9008. If that were to be steady, it'd equal a 63% dividend yield. However, as noted above, the monthly payouts vary, but even with only 8 months of distributions, paying out $8.60/share, AMDY's trailing dividend yield is ~50%. Hidden Dividend Stocks Plus Holdings: As of 1/31/24, AMDY $54M in assets consisted of 52% in US Treasury 0.75% 11/15/2024 Notes, 3.4% in AMD 3/15/24 call options, 17% in Money Market funds, and 51.5% in US 5.07% 6/13/24 T-Bills: AMDY site On the liability side, AMDY was short 2/9/24 $175.00 call options, worth $352.75K and AMD 3/15/24 $180.00 put options, worth $5.34M: AMDY site Performance: As of 5/31/24, AMDY's NAV return was 25.67% from inception, and its price return was 27.35%: AMDY site Although it has declined $2.67 in price since inception, AMDY has paid out $8.60 in distributions, for a net total return of ~30%, as of 6/6/24. From a recoupment perspective, AMD investors have recouped 43.48% of their initial investment in a bit under 9 months, via the $8.60 in distributions. At that distribution pace, they'd recoup their entire investment in ~19.5 months. However, there's no guarantee that the future distribution pace will be as high. Note the radically different returns for these 2 periods. AMDY's ~30% total return from inception is quite impressive - kudos to those income investors who got in at inception. However, for 2024 YTD investors, the story is not so upbeat - AMDY lost $6.26/share, as of the 6/6/24 close, a bit less than the $6.98/share it paid out ytd, for a modest ~3% total return. On the plus side, 12/29/23 investors recouped ~30% of their investment in a little over 5 months.   Hidden Dividend Stocks Plus AMD Profile: AMD engages in the provision of semiconductor businesses. It operates through the following segments: Data Center, Client, Gaming, and Embedded. The Data Center segment includes server-class CPUs, GPUs, AI accelerators, DPUs, FPGAs, SmartNICs, and Adaptive SoC products. (AMD site.) AMD Earnings: AMD had major revenue growth in Q1 '24, in its Data Center and Client segments; while its Gaming and Embedded segments' revenue saw declines vs. Q1 '23: AMD site Analyst Upgrades & Targets: AMD received 5 positive grades with price targets from $190 to $225 in April-May '24, from Jefferies, DZ, TD Cowen, HSBC, and Evercore. As of 6/7/24 am, AMD was trading at ~$167.15, ~13% below the average target price of $191.92.   fvz Price Performance: As expected with its synthetic covered call strategy, AMDY has lagged AMD's performance so far in 2024, and sits 7.75% above its 52-week low of $15.88, whereas AMD is 79% above its 52-week low. Hidden Dividend Stocks Plus Parting Thoughts: The YieldMax ETF's with very high yields, such as 50% for AMDY, appear to offer a much quicker recoupment period than other income vehicles. The downside is that many of them have declined in price since their recent inceptions, so you'll need to be patient enough to deal with that. Potential investors will also have to deal with the fact that, for AMDY, there's no fixed monthly payout - it's dependent upon option premiums and volatility. We rate YieldMax AMD Option Income Strategy ETF a Hold, meaning \"hold off,\" for now. It's worth adding it to your watch list, and waiting for a market selloff, which may give you a lower entry price with which to withstand AMDY's price volatility.  All tables furnished by Hidden Dividend Stocks Plus, unless otherwise noted.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2442857879"}