Ads
related to: covered call options etf
Search results
Results from the WOW.Com Content Network
A covered option is a financial transaction in which the holder of securities sells (or "writes") a type of financial options contract known as a "call" or a "put" against stock that they own or are shorting. The seller of a covered option receives compensation, or "premium", for this transaction, which can limit losses; however, the act of ...
Where things get interesting, and where the active management really comes in, is with management's options strategy. Essentially, the ETF sells covered calls to generate income that it can pass ...
Options, including put options and call options, can be written or purchased on most ETFs – which is not possible with mutual funds, allowing investors to implement strategies such as covered calls on ETFs. There are also several ETFs that implement covered call strategies within the funds. [33] [34] [35]
Actively managed equity portfolios seeking to generate maximum income from a variety of sources will often deploy options strategies. This can include covered call writing. spreads, and other ...
DIVO: This ETF focuses on income generation through dividend-paying stocks, combined with a covered call strategy, making it a reliable option for higher yields without excessive risk.
The writing of the call option provides extra income for an investor who is willing to forego some upside potential. The BXM Index is designed to show the hypothetical performance of a strategy in which an investor buys a portfolio of the S&P 500 stocks, and also sells (or writes) covered call options on the S&P 500 Index.
Ads
related to: covered call options etf