dale toney on Basis Pointing

Then what are your thoughts on ULTY which owns the underlying volatile stocks and writes covered calls? Seems the loses you describe have been sucked out of this one thus far as the price of the ETF has fallen from $45 to narrow channel around $6.40...meaning the market has concluded you are right up to a certain point. My confusion with these derivative income ETFs, like any ETF, is the market maker can destroy or add new shares at will...which leads me to believe they can add AUM to their capital stack, refueling the base...and thus create a quasi ponzi structure. Am I missing something here?