Markets are super volatile in response to a variety of macro Factors and a 50-basis point hike from the Fed last Wed. JPMorgan is touting its Equity Premium Income ETF (JEPI) as a solution for investors who tries to target the returns in the S&P 500 with less volatility. The covered call equity strategy is the way the fund tries to mitigate market volatility but those calls aren’t free. The fund is targeting  6%-9% yield scoring to the global head of ETF solutions at JPMorgan. The volatility has actually served the fund well allowing it to outpace its own expectations.

Finsum: Covered calls are by no means a new strategy but they are effective in limiting volatility.