DELL - Rare Opportunity In The Columbia Seligman Premium Technology Growth CEF
2024-04-03 10:35:00 ET
Summary
- Large-cap technology stocks are finally seeing some limits to their upside after an epic 40%-plus run to all-time highs over the last year or so.
- So while the Magnificent 7 aren't quite as magnificent as they used to be, in some ways that can be an advantage to funds that write options.
- The Columbia Seligman Premium Technology Growth Fund has historically been the premier option-write technology fund among CEFs, typically trading at a double-digit premium.
- So while most option-income CEFs methodically write options that correlate to a set notional value of the fund's total value, STK's portfolio managers will adjust based on market volatility.
- Combined with a heavily concentrated portfolio of the best growth stocks available, STK's strategy can be a win-win when its portfolio can outperform its benchmark while also writing options against it.
The Columbia Seligman Premium Technology Growth Fund ( STK ) , $31.72 closing market price , has been the most popular and best performing technology growth CEF since its inception in November 2009....
Rare Opportunity In The Columbia Seligman Premium Technology Growth CEF