ProShares MSCI EAFE Dividend Growers ETF (EFAD) Covered Calls

Running EFAD covered calls helps you generate income from ProShares MSCI EAFE Dividend Growers 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 EFAD 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 EFAD 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 EFAD 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 EFAD covered call is worth writing.

The index, constructed and maintained by MSCI, targets companies that are currently members of the MSCI EAFE Index ("MSCI EAFE") and have increased dividend payments each year for at least 10 years. The index contains a minimum of 40 stocks, which are equally weighted. Under normal circumstances, the fund will invest at least 80% of its total assets in component securities.