Running KMLM covered calls helps you generate consistent income from KraneShares Mount Lucas Managed Futures Index Strategy ETF's shares you already own, turning a long stock position into a yield-producing asset. A covered call on KraneShares Mount Lucas Managed Futures Index Strategy 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 KMLM 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 KMLM 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 KMLM 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 KraneShares Mount Lucas Managed Futures Index Strategy ETF covered call is worth writing.
KMLM focuses on total return using long and short positions, as determined by daily trading signals, in commodity, currency, and global fixed income futures. For tax purposes, KMLM does not hold futures but gets exposure through a wholly-owned Cayman Island subsidiary. On an annual basis, an index committee selects 22 different futures contracts from the three broad categories. Weighting to the three categories is based on historical volatility. The contracts within each category are equally weighted. The portfolio is rebalanced monthly and contracts are rolled on a market-by-market basis as contracts near their expiration.
The fund may also invest in instruments not included in the index such as equities or derivatives including swaps, forwards, structured notes, and options. Before April 1, 2022, the fund was actively managed. It traded as KFA Mount Lucas Index Strategy ETF until November 10, 2022. On August 1, 2024, KFA was replaced with KraneShares in the fund name.
Income-focused investors, long-term KMLM 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 KMLM covered calls becomes a measured decision instead of a guess. Stop eyeballing the chain — let the best KraneShares Mount Lucas Managed Futures Index Strategy ETF covered calls come to you, already filtered for the metrics that matter.
