Stock of the Week

13 Dec 2024 - Investing

This is the fifth Stock of the Week post, for the week of December 8, 2024. In my Stock of the Week posts, I discuss a security (stock or ETF) that I am currently buying or selling, and will explain my rationale. These are trades I am personally making, so you will either make money with me or lose money with me by entering these trades (ideally the former). Financial Disclaimer

Stock of the Week

The stock of the week for this week is $CONY, the YieldMax COIN Option Income Strategy ETF. This ETF is unique in that it is an actively managed fund that does not invest directly in $COIN, but seeks to generate monthly income by selling/writing call options. Coinbase Global (COIN) is a company that provides technology for the crypto economy including a platform for trading crypto and tools to help developers build crypto products and accept crypto as payment. Following the election win of Donald Trump, the most well known cryptocurrency Bitcoin rose above $80,000 for the first time ever, finally rising over $100,000 on December 5. Regardless of your opinion on Bitcoin, I believe we can still set ourselves up to profit (in USD) long term by buying $CONY and collecting the monthly dividends they provide.

CONY is currently priced at $15.69, and pays a dividend of %102.03, according to Nasdaq.com. Its last Dividend Payment Date is today (December 13), and is paying $1.3391 per share. While it is too late to buy the ETF and receive todays dividend, I still believe this is a great time to buy CONY as it has recently fallen over %14 in just the last 5 days. A dividend yield of %102.03 means you will make your initial investment back in dividends just about a year!

In my first Stock of the Week blog post (here), I recommended you buy $FIAT, which provides exposure to the inverse movements of Coinbase (COIN) stock. By holding both $FIAT and now $CONY we can continue to collect dividends off both ETF’s, profiting regardless of whether the share price of COIN goes up or down.