Invesco KBW Premium Yield Equity REIT ETF (KBWY) Covered Calls

Running KBWY covered calls helps you generate income from Invesco KBW Premium Yield Equity REIT 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 KBWY 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 KBWY 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 KBWY 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 KBWY covered call is worth writing.

The Invesco KBW Premium Yield Equity REIT ETF (Fund) is based on the KBW Nasdaq Premium Yield Equity REIT Index (Index). The Fund generally will invest at least 90% of its total assets in the securities of small- and mid-cap equity REITs that have competitive dividend yields and are publicly-traded in the US that comprise the Index. Keefe, Bruyette & Woods, Inc. and Nasdaq, Inc. compile, maintain and calculate the Index, which is a modified-dividend yield-weighted index that seeks to reflect the performance of such companies. The Fund generally invests in all of the securities comprising the Underlying Index in proportion to their weightings in the Index.