Running DWAS covered calls helps you generate consistent income from Invesco Dorsey Wright SmallCap Momentum ETF's shares you already own, turning a long stock position into a yield-producing asset. A covered call on Invesco Dorsey Wright SmallCap Momentum 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 DWAS 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 DWAS 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 DWAS 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 Invesco Dorsey Wright SmallCap Momentum ETF covered call is worth writing.
The Invesco Dorsey Wright SmallCap Momentum ETF (Fund) is based on the Dorsey Wright SmallCap Technical Leaders Index (Index). The Fund will normally invest at least 90% of its total assets in equity securities of small capitalization companies that comprise the Index. The Index includes securities pursuant to a Dorsey, Wright & Associates, LLC proprietary selection methodology that is designed to identify companies that demonstrate powerful relative strength characteristics based on that company’s market performance. Approximately 200 companies are selected for inclusion in the Index from the NASDAQ US Benchmark Index.
The Fund and the Index are rebalanced and reconstituted quarterly.Effective after the close of markets on Aug. 25, 2023, the Fund’s name will change from Invesco DWA SmallCap Momentum ETF to Invesco Dorsey Wright SmallCap Momentum ETF. No other changes were made to the Fund. See the prospectus for more information.
Income-focused investors, long-term DWAS 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 DWAS covered calls becomes a measured decision instead of a guess. Stop eyeballing the chain — let the best Invesco Dorsey Wright SmallCap Momentum ETF covered calls come to you, already filtered for the metrics that matter.
