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Earn Extra Income By Having The Pros Do It For You... [View Online](=)|[Unsubscribe]( [Street Authority Daily] -Recommended Link [Are you on the list?]( URGENT: On Tuesday, a simple set of instructions will be sent out to an elite group of investors. The folks in this group will have the opportunity to place a 10-minute trade that could double their money by Friday. Consider this your invitation to join them. The next trade is just days away. [Click here to make sure your name is on the list.]( February 18, 2022 Earn Extra Income By Having The Pros Do It For You... By Nathan Slaughter [Nathan Slaughter] In turbulent times, investors understandably become skittish about depositing hard-earned assets into brokerage and 401(K) retirement accounts. But letting your cash languish in low-yielding instruments won't do much to help build a comfortable nest egg, either. If only there were a door number three: a way to stay invested and protected. A way to earn dependable income (beyond dividends), even if the market stalls out or retreats... Actually, there is. As I explained [in this piece](, covered call options are a great way for investors to enhance their income. They also lower risk by reducing your cost basis, since every premium you earn lowers your breakeven price. While it's relatively easy to learn this strategy, the truth is not everyone is comfortable trading individual options. That's okay. For those of you who'd rather leave this strategy to the pros, there's still a way to participate. In fact, I've told my premium readers about a group of funds that were specifically created to take this concept and apply it on a much larger scale. It's like having a group of pros do the work for you. Let me explain... The Hands-Off Approach Using my example of Pfizer in my last piece, if 100 shares can generate about $200 in yearly premium income, then 1,000 shares can give us $2,000 and 10,000 shares can net $20,000. So, imagine the income potential for a closed-end fund that holds hundreds of thousands or even millions of shares. Take the Nuveen Dow 30 Dynamic Overwrite (NYSE: DIAX). The fund invests in the 30 members of the Dow Jones Industrial Average and collects dividends on each. But unlike a plain vanilla index fund, it also sells covered call options to generate additional income and enhance risk-adjusted returns. The fund holds shares of Boeing (NYSE: BA), Cisco (Nasdaq: CSCO), Coca-Cola (NYSE: KO), and Wal-Mart (NYSE: WMT), among others. And it sells options on roughly 50% of the fund's holdings, sweetening the dividends with premium income that allows for a robust distribution of about 6.5%. [Image: Benefits And Drawbacks Keep in mind, while the underlying premise is the same, there are different applications of this strategy. Within the options section of the portfolio, three factors you'll want to consider are the average strike/spot price ratio, weighted average number of days to maturity, and average call option overlay as a percentage of total fund assets. This will yield some insight on how much potential appreciation the fund manager is willing to trade away for current income. It's common for these covered call funds (also known as "buy-write" funds) to have an options overlay representing between 30% and 60% of assets. That's enough to enhance income and be an effective risk management tool, while still leaving the rest of the portfolio unencumbered to participate in a rising market. These funds will usually lag in a runaway bull market. But that's to be expected. They perform best when those bull markets begin to stall out and cool. To demonstrate, just look back a few years to 2015. The S&P 500 inched up just 1.4% that year. But as advertised, the PowerShares S&P 500 BuyWrite Portfolio (NYSE: PBP) delivered a much stronger return of 4.5%. Current conditions favor this strategy. And the extreme price swings we've been seeing make it even more compelling. Remember options premiums are not set in stone. They can vary wildly from a few pennies to several dollars per share, depending on certain variables, including volatility. The more a stock price fluctuates, the more profitable a call option can be -- and the more buyers are willing to pay. That's always a good thing when you're the one on the selling end of the transaction. In other words, this market volatility could be an ally. As one final incentive, consider that covered-call funds can support outsized distributions without the aid of leverage. Most do NOT borrow money, making them less vulnerable to rising rates than other closed-end funds. Closing Thoughts Of course, not all of these funds are created equal. DIAX and PBP are certainly worthy of consideration, but neither one of these if my favorite. Instead, we hold a well-managed fund in the High-Yield Investing portfolio that holds some of the best value stocks on the market. As I told my subscribers back when we added it, value stocks were set to come back into favor in a big way, and we're beginning to see that happen. Unfortunately, if you'd like to get the name of this pick, you'll have to be a High-Yield Investing subscriber. Either way, covered call funds will shine in this environment, acting as a hedge against a directionless market. So if you're looking for some protection and a little extra income, it would be wise to look into them. In the meantime, I have a simple question for you... How would you like to get paid every month from your portfolio? It's easier than you might think... I make it my business to research the best income payers the market has to offer. And what I've found is that most investors don't even know that there are dozens of high-yielding monthly dividend payers out there... And in my latest report, I reveal 12 of my favorite monthly dividend payers that you should consider owning. You could start receiving payouts of $210… $236… $250… and more every single month! [Go here to learn more now...]( To ensure that you receive these emails, [please add us to your address book.]( Disclosure: StreetAuthority doesn't own shares of any securities mentioned in this article. Members of our staff are restricted from buying or selling any securities for three days after being featured in our advisories or on our website. StreetAuthority is a publisher of financial news and opinions. StreetAuthority is not a securities broker/dealer or an investment advisor and we do not recommend or endorse any brokers, dealers or investment advisors. This work is based on SEC filings, current events, interviews, corporate press releases and publicly available information which may contain errors. All information contained in our newsletters and/or on our website(s) should be independently verified with the companies or sources mentioned. You are responsible for your own investment decisions and should always conduct your own research and due diligence and consider obtaining professional advice before making any investment decision. This message was sent by an automated message delivery platform. Please do not reply to this email address. Any messages sent to this address will be automatically deleted. We sincerely hope that you benefit from your subscription to this complimentary newsletter, and we're willing to do whatever it takes to keep you as a satisfied subscriber. You may contact our customer service department by [visiting this link](. To update your subscription or unsubscribe, please [click here](. 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