QQQX: An Excellent Options Fund With Solid History; Is It A Buy?

2025-09-21 08:25:00 ET

Introduction:

Nuveen NASDAQ 100 Dynamic Overwrite Fund ( QQQX ) is a closed-end fund specializing in investing in NASDAQ 100 stocks and writing call options on them. The fund was incepted in January 2007, so that makes for a substantial history of over 18 years. It was started just about a year before the financial crisis of 2008-2009, which was not a great time in retrospect. However, the fund managed to come out of the crisis reasonably well, and since then it has performed pretty well. Also, during its 18 years of existence, it has navigated many different types of market environments, including the ZIRP (Zero Interest Rate Period), the COVID pandemic, and more recently, the high inflation and rising interest rate environment. The fund invests in Nasdaq-100 stocks and aims to provide high total returns. It also sells (writes) call options using the Nasdaq-100 and S&P 500 indexes (or equivalent funds), thereby reducing the volatility and downside risk. However, as the readers would be aware, writing call options also reduces some of the upside of the underlying stocks, especially during the bull market....

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