Interpretations of Splits ......we all have one .How does the writing of covered calls fall into the calculation of distributions on capital shares ?
I have my interpretation but would like to know yours ( all the numbers guys , here ) ?
Brompton gives a commentary on how volatility will enchance their ability to achieve better returns on their covered call writing . I assume that all splits use this to enchance monthly returns for capital share holders.
For example if Middlefield achieves a 5% premium yearly on the total value of ENS at todays nav ( approx. $25.00 ) that would be $1.25 avaliable to capital share holders for fund expenses and distributions beyond the ENB dividend .
Also , my experience tells me that funds are allocated out of the nav once the ex-date is reached in order to have them avaliable for the stock holders on record . The market adjusts to this on ex-date depending on market conditions and numerous other factors .
I am here to learn so please feel free to comment . Lets all learn from this .
ted