PLTY: Why I'm Passing On This Ephemerous 147.89% Distribution Rate

  • The YieldMax PLTR Option Income Strategy ETF uses a covered call strategy on volatile stocks like Palantir, offering high distribution rates but not true profits. I'm skeptical these products outperform simply holding the underlying, especially after accounting for the 0.99% management fee. Covered calls offer some downside protection, but not against sharp sell-offs, and Palantir's valuation and volatility make this risky.