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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Post by JBBmineron Feb 24, 2012 12:09pm

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Post# 19580248

NA

Looks like the NA shares were assigned. zwb had to buy back in. oh well... going forward it's still a great Divy and the March options are a little further out of the money. unless you think CAD banks are going to soar, getting assigned every month is not going to happen. It looks like they are selling further out in order to capture less than 5% of a price appreciation.

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