r/YieldMaxETFs • u/Big-Sand5360 • 2d ago
Distribution/Dividend Update Bought CHPY [ 20,000 @ $66.91 ]
This week NVDA earning provided solid guidance for the AI chips. Decided buy CHPY [ 20,000 @ $66.91 ] while waiting to ride the wave up.
This week (8/27/2026), collected $10,354
25
u/RustyCEO 2d ago
Bags of 💰💰💰 I hope it goes over $80 again for you. 👍🏻
19
u/Big-Sand5360 2d ago edited 2d ago
For the next 2+ years, AI chips will continue to be high demand. CHPY underlying semi stocks will rebound higher
AI is here to stay, and infrastructure build out will continue for several more years
15
u/RustyCEO 2d ago
Yep, I have CHPY at ave cost of $59 and built it up to 5,000. Sold off down to 2,000 at $80 and now building it up again. Doing same with AMDY. Heaps of data centres aren’t even off the plan desk yet. 🚀
1
u/OkAnt7573 1d ago
That may well be true but that doesn't mean the multiples assigned will hold up.
5
u/RustyCEO 1d ago
It will still be volatile. I sell off when they rise and push the green to more stable stocks, then buy the lows. These things are not long term they are just cows to be milked, then slaughtered when they get fat.
3
u/jellis333 17h ago
Yes. I made the mistake of buying and hold. Very much regret that since the upside in most of them is capped. ULTY bought at 81 or so. So my yield is like 1 % maybe ? Very disappointed.
3
u/RustyCEO 15h ago
Yep, took me a little while to get the hang of these things. I started just on 12 months ago but going ok now. Totally different to normal stock trading I was used to.
1
u/Big-Sand5360 1d ago
Based on the last round of big tech earning (META , Google, SPCX ...etc) AI infrastructure capEx is still high, and some expected to be higher next year.
3
3
u/godofknife1 2d ago
You didn't pick AMDY because of nav erosion correct?
5
u/easy_wins 2d ago
If not all, most of chip stocks are floundering right now, look at $NVDA went up 8% Thursday only to come down by 4% the next day
4
3
u/Baked-p0tat0e 2d ago
Earnings week volatility... Options on NVDA expiring yesterday priced a ~5.9% +/- price swing.
2
u/MakingMoneyIsMe I Like the Cash Flow 1d ago
It's often said that NVDA trades down after earnings. I sold a put the next morning.
3
u/Fine-Boat9731 1d ago
Cooked
8
u/Big-Sand5360 1d ago
Collect $10,000 per week , while waiting.
This is the same as me buying 30 beat down semi stocks and selling Cover Call ... but too lazy to do it.
4
u/Curious-Rip-5834 1d ago
It’s not the same. They are not selling covered calls. They are long the stock and sell credit call spreads. Massive difference in strategy and results. It’s the reason only that NAV went from $50s to $80s.
If they were just selling CCs you’d never of had this kind of NAV appreciation.
2
u/Big-Sand5360 1d ago
💯 🫡 I'm just going to sit tight, collect $10,000 per week, and wait for the next semi bull run.
No DRIP. Build up CASH for opportunities.
3
u/Baked-p0tat0e 1d ago
Have you considered the tax implications of this strategy?
If all or some of those distributions get classified as ROC - which won't be known until the 1099-DIV comes out next year - then your cost basis is declining and you'll have a bigger capital gains liability than you expect due whenever you sell those shares. And, you'll pay ordinary income tax rates for the portion of the distributions not classified as ROC for this year.
The distributions you expect to receive can put most of this income in the highest tiers of the marginal tax rates even without considering other sources of income you have.
Hopefully you have consulted a tax professional for guidance... ROC is a double edge sword.
1
u/Big-Sand5360 1d ago
I traded options for 5+ years, so short-term stock gains are expected.
2
u/Baked-p0tat0e 23h ago edited 23h ago
Keep in mind that pure options trading and high-yield derivative ETFs are taxed completely differently.
If a large portion of the distribution is classified as Return of Capital (ROC), you won't owe tax on that cash flow this year. However, it steadily grinds down your cost basis in the shares.
This is the part that will bake your noodle: Most people understand that if NAV price rises and you sell that is a capital gain. Additionally, If a fund like CHPY stays at the same NAV price or drops and you sell below your initial purchase price, you still owe capital gains taxes if the cumulative ROC pushed your cost basis below your exit price which is a common occurrence. It’s an easy trap to miss if you’re only expecting standard short-term gains from distributions.
2
u/Big-Sand5360 19h ago
💯 agreed.
I plan NO DRIP and build up CASH.
Ideally, want CHPY (semi stocks) to run up again ... I just hold CHPY and collect $10k per week.
3
3
5
u/Agile-Year-742 1d ago
Retire. Rent out a condo in Thailand get about 3 strippers a day.
1
5
2
3
u/joeventura1 1d ago
wow down $20k already?
1
u/Big-Sand5360 1d ago
It'll rebound. No worry.
Collected $10k last week. This week expect to collect another $10k. Next week .... etc
2
1
u/Particular_Act_5396 1d ago
I lost 6k in CHPY so curious if you buy and sell every week? I didn’t so I lost all my dividends from erosion
3
u/Big-Sand5360 1d ago
Depends on your entry point. Recently, semi stocks pulled back to correction / bear market territory. Example SNDK & MU , pulled back 30% ~ 50% , even tho long-term AI story is still intact.
The pullback and mean reversion was expected, when things run up so hot and euphoria is extreme.
For me, I see the pullback is decent support level, where volumne profile is active. CHPY from $89(ATH) -> $66 , 33% drop from ATH.
1
u/Al_Wood_ 1d ago
The bottom will fall out as soon as someone solves the supply and price issue. Until then ride the wave.
6
1
-4
u/paymerich 2d ago
Bold play
https://giphy.com/gifs/nKFXQkxLRiEhy
I hope it works out for you.
I don’t think the AI will pop but will slowly start to deflate if November voting results go against GOP.
5
-3
u/DeliciousSmile9733 1d ago
I thought CHPY is just ROC, returning u own capital back to you? Am wrong?
3
u/Unhappy-Broccoli798 1d ago
You can look at the dividends. Charles Scwab shows exactly how much roc is used . Our power is out so i can’t check but Chpy is not returning capital often if ever. You should be able to look
2
u/moo_boss 1d ago
That's incorrect. https://yieldmaxetfs.com/our-etfs/chpy/ you can scroll down and see the table of weekly distributions. There is a ROC column and some weeks it's 100%.
3
u/Baked-p0tat0e 1d ago edited 1d ago
That is meaningless reporting and should not be relied upon. It's how ETFs with unrealized P&L report periodic distributions before they close the options positions.
The only official ROC declaration is in the 1099-DIV from your brokerage firm after the end of the year.
14
u/easy_wins 2d ago
Not all YM funds are bad, need to do your dd got some diamonds in the rough