(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
Think of a buy-write fund like owning a house and renting out the spare room. (sells) a call option on that same security
If someone offers to buy your house for a high "strike price" you previously agreed to, you must sell it to them at that price—even if the market value has soared way past it. Pros and Cons: Is the Trade-Off Worth It? The Upside 3 ways bond buy-write ETFs can benefit investors - iShares buy write funds
Buy-Write Funds: Turning Market Volatility into Monthly Income