KraneShares KWEB Covered Call Strategy ETF (KLIP) Covered Calls

Running KLIP covered calls helps you generate income from KraneShares KWEB Covered Call Strategy ETF shares you already own, turning a long stock position into a yield producing asset. A covered call means holding the underlying stock and selling a call option against it, collecting premium in exchange for capping upside at the strike. Use our scanner to find the best KLIP covered calls in real time and filter for the strikes, expiries, and premiums that fit your strategy.

A covered call pairs limited risk with a clear income profile. If KLIP stays below the strike at expiration, you keep the premium and the shares. If it rises above, you deliver the stock at the strike and still pocket the premium. Selling KLIP covered calls works best when implied volatility is elevated, since richer premiums improve the risk reward. Key inputs include strike selection relative to delta, days to expiration, annualized return, and probability of assignment, all of which determine whether a given KLIP covered call is worth writing.

Under normal circumstances, the fund invests at least 80% of its net assets in the component securities of the CSI Overseas China Internet Index or in instruments that have economic characteristics similar to those in the index and writes covered call options on the index or in instruments that have economic characteristics similar to writing covered call options on the index. Currently, the adviser intends to invest in KraneShares CSI China Internet ETF (“underlying fund”) and to write (sell) covered call options on the underlying fund. The fund is non-diversified.