EOI: Take Advantage Of The Tech Sell-Off And Higher Vol

Binary Tree Analytics
5.15K Followers

Summary

  • EOI is a closed end fund that is a form of a "buy-write" vehicle.
  • EOI only writes call options on half of its portfolio, thus providing investors price upside as well.
  • Given the current Tech sell-off, layering in a high dividend fund that provides income from the high volatility is a good way to take advantage of the move.
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Thesis

Eaton Vance Enhanced Equity Income (NYSE:EOI) is a closed end fund that has current income as a primary investment objective. EOI invests in a portfolio of equity securities with a sector allocation very similar to the S&P 500 and writes

This article was written by

5.15K Followers
With an investment banking cash and derivatives trading background, Binary Tree Analytics ('BTA') aims to provide transparency and analytics in respect to capital markets instruments and trades. BTA focuses on CEFs, ETFs and Special Situations, and aims to deliver high annualized returns with a low volatility profile. We have been investing for over 20 years after obtaining a Finance major at a top university.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of EOI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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