Sunday, January 3, 2010

Re: [ConservativeOptionStrategies] Re: CC cefs BEP/RCC

 

Many option trading CEFs return ROC.  QQQX and GGN are two.  QQQX just had a huge div cut eveen with the rising NASDAQ.  These are funds not options so i will not discuss further a list of option buy/write funds can be found on www.etfconnect

--- On Sun, 1/3/10, Michael Bundy <mbundy1560@aol.com> wrote:

From: Michael Bundy <mbundy1560@aol.com>
Subject: [ConservativeOptionStrategies] Re: CC cefs BEP/RCC
To: ConservativeOptionStrategies@yahoogroups.com
Date: Sunday, January 3, 2010, 8:21 AM

 
For much of last year, BEP traded at a premium of 5% to 10% or more, currently the premium is only .49%.  However, the fund was only set up to trade for five years, liquidating by March 31, 2010.  My understanding is that they intend to liquidate even sooner.  Also, their 6/09 distribution was 94% return of capital, in other words, they were paying you back your own money.  Given the upcoming liquidation, I would avoid it unless it happened to be trading at a significant discount during the short remaining life of the fund.

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