Key insights
- The author expresses concern about the sustainability of high dividend yields from MSTY, a stock linked to crypto options trading. Initial skepticism turned into excitement due to substantial weekly payouts and price appreciation. However, the author now questions the stock's long-term viability and potential risks, especially given macro headwinds like rising interest rates and tariffs. The high yield raises concerns about a potential 'rug pull' or unsustainable business model, signaling caution for US equity investors.
So about 3 months ago I wanted to get completely out the market. I did really well the previous year and raising interest rates and tariffs had me believing a recession was close. But I have a really good friend that is really into the stock market and she told me about this stock that's tied to option trading on crypto and that it pays a crazy weekly dividend. I was like that sounds super sketch, but she assured me it was solid. And that I should just hold it till I wanted to re-enter the market. So I bought 1500 shares at $22. Then the Iran war started and crypto was on the raise again. So now this stock is up 20% and paying me $500 to $800 dollars a week! I guess I am now at the point of being worried and skeptical about this stock, like why isn't everyone owning this? Is there gonna be a huge rug pull? I've made more in dividends from this stock in the past month than all the dividend stocks I've owned the last 6 years prior!