There are two sides to everything when it comes to getting rich in the US stock market.
TSTY and nvidia are ETFs issued by YieldMax based on options strategy. The major risks of maximum loss for them include the following aspects:
**Market Risk**
In the event of a significant drop in stock prices, TSTY and nvidia are based on tesla (tesla) and nvidia's (nvidia) stock prices respectively. If the prices of these stocks plummet, the value of the ETF will also decline, leading to potential significant losses for holders.
Volatility risk, while options strategies can bring profits, if the market volatility is intense, it may affect the effectiveness of the options strategy, causing expected returns to decrease, or even losses.
Risk of options strategies.
Covered call strategy, TSTY and NVDY generate additional income by selling call options. This strategy works better when stock prices are flat or slightly rising, but if stock prices rise significantly, the ETF will be forced to sell stocks at a lower price than the market, missing out on further gains.
The loss of time value, the value of options will decrease as time passes, if the market is not favorable to the options sold, the fund may not receive the expected options income.
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4. Leverage risk (if applicable)
Amplify losses, if the ETF uses leverage (such as some YieldMax ETFs), the losses will be magnified in a declining market. For ETFs without leverage, losses are relatively less, but still...