Fidelity MSCI Real Estate Index ETF (FREL) Covered Calls

Running FREL covered calls helps you generate income from Fidelity MSCI Real Estate Index 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 FREL 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 FREL 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 FREL 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 FREL covered call is worth writing.

Tracks the performance of the MSCI USA IMI Real Estate 25/50 Index.