In the example above, a call option was issued for 1 Apple share. That is, whereas XYLD is using large caps via the S&P 500, RYLD covers the rest of the U.S. market with smaller stocks. How It Works & How to Invest in It, How To Invest in an Index Fund The Best Index Funds, Portfolio Diversification How To Diversify Your Portfolio, Dollar Cost Averaging vs. We (Global X) will usually forecast how big we expect a distribution to be around one week prior to the ex-distribution date. Investors can profit from covered calls by purchasing a covered call . Options are rolled the day before expiry. This strategy allows covered call ETFs to have huge distribution yields upwards of 10% that typically pay monthly, making them attractive to income investors and retirees. !function(e,a,t){var n,r,o,i=a.createElement("canvas"),p=i.getContext&&i.getContext("2d");function s(e,t){var a=String.fromCharCode,e=(p.clearRect(0,0,i.width,i.height),p.fillText(a.apply(this,e),0,0),i.toDataURL());return p.clearRect(0,0,i.width,i.height),p.fillText(a.apply(this,t),0,0),e===i.toDataURL()}function c(e){var t=a.createElement("script");t.src=e,t.defer=t.type="text/javascript",a.getElementsByTagName("head")[0].appendChild(t)}for(o=Array("flag","emoji"),t.supports={everything:!0,everythingExceptFlag:!0},r=0;r