The fund writes covered calls and puts secured by cash. The puts do not actually provide 'insurance' in the sense of the word, but rather generate income and allow the fund to buy securities at lower prices, if the stock falls and they are exercised. The calls generate income but positions can be called away if the stock rises. It does not disclose its options weightings, but it is an active fund and these will change anyway. It is considered 'low to medium' risk in terms of regulatory disclosure. It has a short history, but has done well. One year return is 20%; indicated yield 6.6%. The two-sided option strategy enhances yield and offers some insurance, since only one side of an options pair can be exercised. But, considering its holdings, we would consider it riskier than a utility or pipeline ETF, and more risky than most bank ETFs. Generally, if tech cracks, this fund is still going to decline.
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