A closer look at covered calls

February 8, 2019

Harvest Portfolios Group Inc. uses a call option strategy to enhance the income generated in 8 of its ETFs.

This method of using a stock’s option to generate income has become more universal in today’s period of low interest rates. Yet, it is still widely misunderstood. While many observers see the strategy as adding risk, it reduces risk in many cases.

When strong, global businesses with growing dividend streams are combined with the call option strategy it is a powerful energizer. Harvest writes calls on up to 33% of each position, generating an attractive tax efficient income while participating in the growth in the companies where it is invested.

Harvest Portfolio CEO Michael Kovacs has written an article explaining how the strategy works, why it reduces risk and how Harvest uses it to generate more money for investors who hold its funds. Click here to read the article.

For more about Harvest Portfolio Group click here.

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For Information Purposes Only. Commissions, management fees and expenses all may be associated with investing in HARVEST Exchange Traded Funds (managed by Harvest Portfolios Group Inc.) Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies. Tax, investment and all other decisions should be made with guidance from a qualified professional.

Certain statements in the Harvest Blog are forward looking Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or  “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS.

FLS are not guarantees of future performance and are by their nature based on numerous assumptions, which include, amongst other things, that (i) the Fund can attract and maintain investors and have sufficient capital under management to effect their investment strategies, (ii) the investment strategies will produce the results intended by the portfolio managers, and (iii) the markets will react and perform in a manner consistent with the investment strategies. Although the FLS contained herein are based upon what the portfolio manager believe to be reasonable assumptions, the portfolio manager cannot assure that actual results will be consistent with these FLS.

Unless required by applicable law, Harvest Portfolios Group Inc. does not undertake, and specifically disclaim, any intention or obligation to update or revise any FLS, whether as a result of new information, future events or otherwise.

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