Recon Capital believes that equity options can be used to reduce volatility and generate income. Recon uses equity options in tactical portfolios, as well as on December 12, 2013, Recon Capital Advisors, LLC, a wholly owned subsidiary, launched the Recon Capital NASDAQ 100 Covered Call ETF (NASDAQ: QYLD).
QYLD seeks to provide investment results that will closely correspond, before fees and expenses, generally to the price and yield performance of the CBOE NASDAQ-100® BuyWrite Index (www.cboe.com/BXN).
The BXN index which is a passive total return index based on (1) buying a NASDAQ-100 stock index portfolio, and (2) “writing” (or selling) the near-term NASDAQ-100 Index (NDX) “covered” call option, generally on the third Friday of each month. The NDX call written will have about one month remaining to expiration, with an exercise price just above the prevailing index level (i.e., slightly out of the money). The NDX call is held until expiration and cash settled, at which time a new one-month, near-the-money call is written.
Please visit Recon Funds to view information on the Fund.