options-income fund

(redirected from Option Income Funds)

Options-Income Fund

A mutual fund where the money managers write covered calls on the securities in the fund. This allows the fund to profit from the collection of the premiums while eliminating the risk that it will lose on the option transaction. In the worst case scenario, it must sell a security in its portfolio when an option is exercised. Most of the time, the options are not exercised and the fund simply increases its income with the premiums.

options-income fund

A mutual fund that attempts to increase current income by writing covered call options on securities held in the fund's portfolio.
References in periodicals archive ?
A) As of January 92, Option Income Funds Report in Income- Equity category.
Option Strategy and Distribution Rate Data: Enhanced data focusing on the option strategy and Distribution Rate on the equity portfolios for Nuveen's equity option income funds.
Hawkes pioneered the development of an array of value-added investment products, including floating-rate bank loan funds, municipal bond funds, tax-managed equity funds, equity option income funds and the nation's first mutual funds to focus on China and India.