I Won’t Panic Sell $ULTY, No Matter What

The YieldMax Ultra Option Income Strategy ETF (NYSEARCA: ULTY) has become a lightning bolt of controversy among ETF investors. As part of the YieldMax catalog of ETFs, ULTY is one of the few based on a floating collection of 30-40 highly volatile stocks for its portfolio, with management discretion over which ones to utilize for its derivatives strategy, as opposed to fixed YieldMax single stock ETFs, such as are contained in its “fund of funds” YMAX. 

Since its inception launch price at roughly $20 in February 2024, ULTY has dropped in NAV to a $5.40-$5.55 range at the time of this writing. Although its proportionate weekly dividend distribution of roughly 10 cents per share has escalated to what is effectively a yield of 129.06% (as posted by Yahoo! Finance), the shareholders and followers have split into two camps: those who have either sold their holdings and voice their regrets and negative warnings on social media, and those who not only are staunchly resolved to keep their holdings and dividends, but are even doubling or tripling down, and viewing the current low price as a buying opportunity. 

Those that have sold their shares regret their purchases and are understandably dismayed, thinking that the dividends are simply a snake-oil ploy to get their investment dollars so YieldMax can collect its 1.5% fee. However, there are a number of reasons that those who remain bullish have cited as their rationale for optimism. 

The Case For ULTY Bulls

The ULTY bulls point out that although NAV has dropped, Assets Under Management (AUM) has tripled since July, which drastically minimizes the risks of capital depletion.

Those that have doubled down or more on ULTY have listed a number of strong and compelling reasons to support their views:

• Summer Doldrums–  While there is some risk of capital depletion, as stated in the risk disclosures, the underlying market for the options is most greatly at risk in a bear or flat market. The July-August months are traditionally the slowest period, since many traders and investors take their vacations during that time, so the activity is expected to pick up going into Autumn. 
• Comparing Apples and Oranges – A significant percentage of naysayers are comparing ULTY to other stocks and ETFs whose NAVs fall, without taking into account its unique operational structure. The high dividend frequency from option derivative underwriting is the primary source of dividends. People who look at NAV and market price are judging ULTY erroneously, compared to conventional ETFs. Instead, due to its high dividend distribution emphasis, the focus for valuation, they insist, should be on total returns. When viewed through that lens, it was returning 14.45% going into the end of August, vs. 10.44% for SPY, the S&P 500 ETF. 
• Option Trading Convenience – Option trading is a time intensive activity that can even whipsaw seasoned professionals, yet countless numbers of hedge funds routinely use them to augment gains. By investing in ULTY, some argue that they are getting the benefit of option trading income on a proportionate scale to some hedge funds while only paying 1.5% in fees, which is relatively low by comparison. 
• AUM Growth – This is probably the strongest argument in the Bulls’ favor. Despite the listed NAV dropping, ULTY’s total assets under management have ballooned from $960 million in July 2025 to close to $3 billion by mid-August, according to an article in Seeking Alpha. As a result, the likelihood that ULTY will run out of money would appear remote, and should the Autumn activity pick up as anticipated above, the odds are reasonably in the Bulls’ favor for a return to $6-$7 per share, with dividends continuing. At present levels, a full recoupment within 24-30 months is possible if dividends remain at present levels or increase. At that point, future proceeds would be taxed as capital gains instead of as income for those investors.

Professional Risk Management Advice

Financial consultants can provide invaluable advice from hands-on real-world experience that surpasses that of a virtual or AI-originated bot derived solely from data numbers.

For those investors looking to take the plunge or perhaps add to current ULTY positions, the advice of an experienced financial professional can be invaluable. Some of the assistance that a firm and its representatives can render investors includes:

• Setting up a Dividend Reinvestment Plan (DRIP) that can allocate dividend income towards reinvesting in the same security or in a prescribed checklist of other securities;
• Providing alerts that may not readily relevant to a specific security, but perhaps to a sector that could be important for one’s overall portfolio strategy;
• Advise on prudent risk management, portfolio stop-losses and other strategies based on historical hands-on experience, as opposed to theoretical or virtual proposals from AI, such as how particular market makers might attempt to bait or fool their competitors.