SPXX: Have Buy-Write CEFs Actually Cushioned The Bear Mauling?

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Binary Tree Analytics
2.96K Followers

Summary

  • The Nuveen S&P 500 Dynamic Overwrite Fund is a buy-write CEF from Nuveen.
  • The CEF has significantly outperformed the S&P 500 in 2022.
  • In this article we analyze SPXX's return profile versus other buy-write CEFs and versus the Index to ascertain relative value performance versus outright equity positions.
  • The article parses out the "true" 2022 CEF performance versus premium to NAV increases and derives portfolio timing allocations.
  • This article covers CEFs from our suite of products - we focus on CEFs and yield-generating options strategies in a macro portfolio set-up, targeting overall yearly portfolio returns of 9%+.

Brown bear face contour in black and white. Bear face on black background.

ErikMandre

Thesis

The Nuveen S&P 500 Dynamic Overwrite Fund (NYSE:SPXX) is a closed end fund falling in the equity buy-write strategy bucket. As per the fund's literature:

The Fund is designed to offer regular distributions through a strategy that seeks

what is the return

YTD Total Returns (Seeking Alpha)

where are you my star

CEF Table (Author, Morningstar)

Chart
Data by YCharts

where is the web

Option Overlay (Fund Website)

This article was written by

Binary Tree Analytics profile picture
2.96K 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 no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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