2 Option Writing Funds Providing Attractive Distribution Yields
Source: SeekingAlpha
2025-05-17 22:44:17 ET
Summary
- Covered call writing closed-end funds can offer higher distributions through option premiums, but they can also limit some upside potential.
- Some funds incorporate more flexible strategies to help negate some of that upside cap through overwriting only a portion of the fund.
- We are looking at two call writing funds today that are both looking like attractive opportunities for long-term investors at this time, based on valuation.
Written by Nick Ackerman, co-produced by Stanford Chemist
Covered call writing closed-end funds can provide relatively higher distributions to their investors thanks to collecting the option premiums. Though there are two different ways a fund can write calls. That can be the names in the underlying portfolio or writing against indexes. One of the downsides of a call writing strategy can be that the upside participation can be capped when the underlying rises too quickly and goes above the strike price selected....
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2 Option Writing Funds Providing Attractive Distribution Yields
Nuveen NASDAQ 100 Dynamic Overwrite Fund
NASDAQ: QQQX
QQQX Trading
-2.84% G/L:
$27.3103 Last:
108,976 Volume:
$27.55 Open:
