WisdomTree Emerging Market Local Debt Fund (ELD) Covered Calls

Running ELD covered calls helps you generate income from WisdomTree Emerging Market Local Debt Fund 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 ELD 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 ELD 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 ELD 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 ELD covered call is worth writing.

The fund seeks to achieve its investment objective through investment in bonds and other debt instruments denominated in the local currencies of emerging market countries. Under normal circumstances, it will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in Local Debt. The Advisor attempts to maintain an aggregate portfolio duration of between two and ten years under normal market conditions. The fund is non-diversified.