"NDIV generates income from two sources: dividends from energy and natural resources companies and a covered call strategy that sells call options on its holdings, collecting upfront premiums."
"The fund's portfolio is concentrated with 65% in oil, gas, and consumable fuels, 22% in chemicals, and 13% in energy equipment and services, many of which are Master Limited Partnerships."
"Covered call premiums fluctuate with market volatility; when fear spikes, options become more expensive, allowing the fund to collect more income, while calm periods lead to reduced premiums."
NDIV generates income from dividends of energy and natural resources companies and a covered call strategy. The fund holds a portfolio with 65% in oil, gas, and consumable fuels, 22% in chemicals, and 13% in energy equipment. It sells call options on its holdings to collect premiums, enhancing income. The fund has been using this strategy since August 2022 and actively manages its options positions. Market volatility affects the premiums collected, with higher premiums during periods of increased fear and lower premiums during calm periods.
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