ETV: Great Fund, Even Greater Premium

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Binary Tree Analytics
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Summary

  • ETV is an equity buy-write CEF from Eaton Vance.
  • The fund has a great risk/return profile and is one of our core holdings.
  • The CEF is currently trading at a historic high premium to NAV on the back of investors' desire to short volatility.
  • While ETV is a core holding it is time to lighten up on some of the exposure for investors who choose to take a more active approach to their portfolio management.
  • This article covers CEFs from our suite of products - we focus on macro portfolio allocation, CEFs, and yield-generating options strategies, targeting overall yearly portfolio returns of 9%+.
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Thesis

Eaton Vance Tax-Managed Buy-Write Opportunities Fund (NYSE:ETV) is an equity buy write fund from the Eaton Vance suite. As per the fund's literature:

The Fund invests in a diversified portfolio of common stocks and writes call options on one

This article was written by

Binary Tree Analytics profile picture
3.05K Followers
With a financial services cash and derivatives trading background, Binary Tree Analytics aims to provide transparency and analytics in respect to capital markets instruments and trades._____________________________http://www.BinaryTreeAnalytics.com

Disclosure: I/we have a beneficial long position in the shares of ETV 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.

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