TSLY an option-based ETF vs TSLA Pure Form (Patreon)

Insightful question from 12 Gauge: The market is abuzz with talks of impressive earnings from the TSLY ETF, but things might not be as rosy as they seem. 

Let's dissect what TSLY truly is:

1. Definition: TSLY operates as an option-based ETF.
2. Capped Gains: The ETF restricts the upward potential of Tesla's stock value because it engages in selling call options on Tesla shares. This stipulates that it must sell the Tesla shares at a fixed price, foregoing any profits if the stock's price escalates.
3. Unpredictable Revenue: The revenue generated by TSLY isn't stable. It primarily derives from the sale of call options, the success of which is significantly influenced by the fluctuating nature of Tesla's stock price.
4. Liquidity Issues: Being a notably illiquid ETF, TSLY presents challenges in procuring or vending shares at a reasonable price, potentially making it complicated to withdraw from a position when necessary.

Analyzing the Data - A glance at the TSLY/TSLA pair chart reveals a 56% decline YTD, but digging deeper uncovers a grimmer narrative.

If you owned TSLY vs TSLA year to date - you would have made 120.25% on Tesla and made nothing on TSLY. 

It does apparently pay a dividend like a dividend stock but the stock itself goes nowhere while TSLA jumps up 120%