Motley Fool 100 Index ETF (TMFC) Covered Calls

Running TMFC covered calls helps you generate consistent income from Motley Fool 100 Index ETF's shares you already own, turning a long stock position into a yield-producing asset. A covered call on Motley Fool 100 Index ETF involves holding the underlying stock and selling a call option against it, collecting premium in exchange for capping upside at the strike price. Use our scanner to find the best TMFC covered calls in real time and filter for the strikes, expiries, and premiums that fit your strategy.

A covered call is one of the most widely used options strategies because it pairs limited risk with a clear income profile: if TMFC 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 TMFC covered calls works best when implied volatility is elevated, since richer premiums improve the risk-reward. Key inputs to evaluate include strike selection relative to delta, days to expiration, annualized return, and the probability of assignment — all of which determine whether a given Motley Fool 100 Index ETF covered call is worth writing.

Under normal circumstances, at least 80% of the fund's total assets (exclusive of any collateral held from securities lending) will be invested in the component securities of the index. The index was established by TMF in 2017 and is a proprietary, rules-based index designed to track the performance of the 100 largest, most liquid U.S. companies that have been recommended by TMF’s analysts and newsletters. The fund is non-diversified.

Income-focused investors, long-term TMFC holders, and systematic premium sellers all face the same challenge: finding the covered call strike and expiry that balances yield against the risk of being called away. Our scanner ranks covered calls by annualized return, downside protection, and probability of profit, so selling TMFC covered calls becomes a measured decision instead of a guess. Stop eyeballing the chain — let the best Motley Fool 100 Index ETF covered calls come to you, already filtered for the metrics that matter.