(sells) a call option on that same security to another investor.
A buy-write (or ) strategy is a two-part move where a fund: Buys a security (like a stock or an entire index).
Buy-Write Funds: Turning Market Volatility into Monthly Income
You get paid every month regardless of whether the house value goes up or down.
In exchange for selling this option, the fund receives an immediate cash payment called a . This premium provides the "yield" that buy-write funds are famous for, often reaching double digits even when traditional dividends are low. How the Math Works (in Plain English)
In a market that often feels like a roller coaster, many investors are looking for a way to smooth out the ride. Enter —investment vehicles designed to generate consistent income by trading away a bit of their upside potential. If you've ever wanted to "rent out" your stocks for extra cash, this strategy is for you. What is a Buy-Write Strategy?
