SPY - Income Lab Ideas: Single Stock Covered Call Writing And Index Call Writing
Written by Nick Ackerman, co-produced by Stanford Chemist
The majority of closed-end funds have one of two strategies; they utilize leverage or use an options strategy. There are even some CEFs that use both strategies together. I wanted to explore the pros and cons of the options strategy. When a fund is using an options strategy, they overwhelmingly use a covered call writing strategy. From there, some funds use single stocks, and some use indexes to write calls on.
The call writing strategy is more common than the other option strategies for several reasons. For