BMO Covered Call Canadian Banks ETF T.ZWB

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

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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Comment by jjmaxon Apr 02, 2011 3:22pm

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Post# 18377575

RE: Great conditions for Covered Calls

That's exactly what I did Lou!

Great minds as the saying goes and i'm just an amateur. I think the first payout is next month so we'll se if they can make that 10% annual as promised.

I also hold FFN which I wrote you about in your G&M mailbag. No response yet? Hoping? As i mentioned it's a split corp., all financial wwith a threshold NAV which they've been making since last DEC and should be okay now if the banks go higher.

I've also discovered that a few other funds use covered calls including Evervest EIT.UN.

Thanks, Max in Victoria

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