BMO Covered Call Canadian Banks ETF T.ZWB

Alternate Symbol(s): T.ZWB.U | BMDLF

The ETF seeks to provide exposure to the performance of a portfolio of Canadian banks to generate income and to provide long-term capital appreciation while mitigating downside risk through the use of covered call options. To achieve investment objective the ETF will primarily invest in and hold the securities of Canadian banks, ETFs, or a combination of these. Depending on market volatility and other factors, the ETF will write covered call options on these securities. Under such call options, the ETF will sell to the buyer of the option, for a premium, either a right to buy the security from the ETF at an exercise price or, if the option is cash settled, the right to a payment from the ETF equal to the difference between the value of the security and the exercise price.

TSX:ZWB - Post by User

BMO Covered Call Canadian Banks ETF

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Post by gwplanton Nov 23, 2012 7:19pm

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Post# 20638378

Take care folks sold today...

Held this thing wayyyyy too long but sold today to take a bit of a loss and used the proceeds and put it towards a quarter of a full position in CM, which has a better chance of recouping the capital loss along with an almost 5% yield...now I own the big 4 banks for a full 10% position in the portfolio...something I just should have done right from the start as opposed to owning this hunk of junk. Good luck to ya and really consider just owning the bank stocks directly, the premium on the coverd call strategy here just isn't worth it.

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