NVDA - BST: Covered-Call Tech Has Performed Well Eyeing Risks
2024-07-16 10:27:31 ET
Summary
- The BlackRock Science and Technology Trust is a top-performing closed-end equity fund with a unique approach to investing in tech stocks.
- The fund's performance is heavily dependent on the future interest rate environment and potential shifts in investor preferences with the US election in the offing.
- BST offers exposure to current and emerging leaders in the technology sector, but uncertainties surrounding rates and market trends warrant a hold rating.
- I outline key price levels to watch on this high-fee CEF.
The BlackRock Science and Technology Trust (BST) has been among the better-performing closed-end equity funds over the past year. While many CEFs aim to take on leverage to garner a higher yield in income-focused stocks, BST takes a different approach. It primarily owns tech stocks, along with shares in companies adjacent to digital breakthroughs and communications, and writes call options on those securities. ...
BST: Covered-Call Tech Has Performed Well, Eyeing Risks