New ETF emulates covered call strategy

long etfsOne approach investors consider in uncertain market conditions is a covered-call strategy.

The idea is that you write out-of-the-money call options on stocks that you hold to tweak your returns while collecting dividends and waiting for the market to start heading up again.

PowerShares Capital Management recently listed the Powershares S&P 500 BuyWrite Portfolio (PBP) based on the CBOE S&P 500 BuyWrite Index which measures the total rate of return of an S&P 500 covered call strategy.

Learn more about the BuyWrite Portfolio at the PowerShares website.

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