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Closed-End Fund Market Commentaries


This Covered Call Index Tends To Beat The Broader Market In Low Return And Negative Return Climates

Nov 28, 2017
Click here to access This Covered Call Index Tends To Beat The Broader Market In Low Return And Negative Return Climates

View from the Observation Deck

1. From 2001-2016,the CBOE S&P 500 BuyWrite Index (an index designed to measure a covered call strategy) outperformed the S&P 500 Index in six of the 16 calendar years. It has lagged year-to-date thru 11/24/17 (see table).
2. While covered call options can generate an attractive level of current income,they also can cap the potential for capital appreciation.




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