yellowman98

An In Depth Look at the New Covered Call ETFs

Nice post (including revised blog & comments by Mr. Nusbaum). As a newbie, I am understanding better how this investment idea works.

To me, seems like BEP is a good option if you're looking to roughly match SPY performance with less volatility, with the bonus of a 10% dividend, and don't mind the 100 basis points.

Is there a point a few years in the future when BEP will stop writing covered calls and it's dividend, and simply become an index fund and revert to its NAV? (I read some posts expressing this concern a few months ago) What happens then? Wouldn't that reversion make relvant how the fund trades relative to the NAV, especially for your entry point into the fund?

Thank you for sharing your opinion.