New Buy-Write Mutual Fund Aims to Outperform BXM Index

New Buy-Write Mutual Fund Aims to Outperform BXM Index

November 8, 2015 Uncategorized 0 Comments

IRON Equity Premium Income Fund (CALLX)
mentioned in DailyAlts.com

The CBOE S&P 500 Buy-Write Index (“BXM”) is a benchmark designed to track the performance of a hypothetical buy-write strategy on the S&P 500 Index. So-called “buy-write” strategies involve buying a stock or portfolio of stocks (in the case of the BXM, it is the S&P 500 Index itself), and “writing” (or selling) call options on those securities.

The objective of BXM and all buy-write strategies is to generate attractive risk-adjusted returns with lower volatility and less tail risk than long-only equity investments by generating income from the sale of call options. This isn’t a free trade however, as the seller of a call option caps the upside of the underling equity investment.
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The views expressed in the article are those of the author and participants as of 11.8.2015 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security. Information provided with respect to the Fund’s Portfolio Holdings, Sector Weightings, Number of Holdings, Performance and Expense Ratios are as of the dates described in the article and are subject to change at any time.

Option writing may limit the amount of capital appreciation, especially in a rapidly rising stock market. The short-term return profile might be unattractive; hence this strategy is not suitable for shorter-term investment horizons. No strategy, including option strategies, can eliminate risk.

You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing. The Fund’s prospectus contains this and other information about the Fund, and should be read carefully before investing. You may obtain a current copy of the Fund’s prospectus by calling 1-877-322-0575. Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

Distributed by Unified Financial Securities, Inc., 2960 North Meridian Street, Suite 300, Indianapolis, IN 46208. (Member FINRA)

An investment in an exchange-traded fund (ETF) generally presents the same primary risks as an investment in a conventional fund (i.e., one that is not exchange traded) that has the same investment objectives, strategies, and policies. The price of an ETF can fluctuate up or down, and the Fund could lose money investing in an ETF if the prices of the securities owned by the ETF go down. In addition, ETFs may be subject to the following risks that do not apply to conventional funds: (i) the market price of an ETF’s shares may trade above or below their net asset value; (ii) an active trading market for an ETF’s shares may not develop or be maintained; or (iii) trading of an ETF’s shares may be halted if the listing exchange’s officials deem such action appropriate, the shares are delisted from the exchange, or the activation of market-wide “circuit breakers” (which are tied to large decreases in stock prices) halts stock trading generally.