Cwm LLC lifted its holdings in Neuberger Berman Option Strategy ETF (NYSEARCA:NBOS) by 914.2% during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 166,240 shares of the company's stock after buying an additional 149,849 shares during the period.
Neuberger Berman Option Strategy ETF (NYSEARCA:NBOS - Get Free Report) was the recipient of a significant growth in short interest in February. As of February 27th, there was short interest totaling 87,012 shares, a growth of 79.0% from the February 12th total of 48,607 shares. Based on an average daily trading volume, of 32,515 shares,
Options-based ETFs are surging in popularity among income-hungry investors, confirming that big yields are indeed selling points. However, many novice investors simply look at those tempting yields and jump right in without performing adequate due diligence.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 8,971 | $239,884.54 | $253,699.88 | $13,815.34 | 5.76% |
| RS Richard Slavik Newbridge Financial Services Group Inc. | 560 | $14,733.6 | $15,836.8 | $1,103.2 | 7.49% |
| WTM W. Travis McKinney HB Wealth Management LLC | 34,997 | $925,165.57 | $988,665.25 | $63,499.68 | 6.86% |
Michael Byun SageView Advisory Group LLC | 790 | $20,891.54 | $22,309.6 | $1,418.06 | 6.79% |
| BP Brett Pohl Kingdom Financial Group LLC | 6 | $163.61 | $169.74 | $6.13 | 3.75% |
| ARCA Exchange | US Country |
The fund operates with a specific investment strategy focused on generating returns through the writing of collateralized put options on major U.S. indices, notably the S&P 500® Index and others within its suite, in addition to ETFs. By employing a strategy that involves selling put options, the fund attempts to capitalize on the premiums received from these options as a primary means of achieving its financial objectives. The notional value of the options written—essentially, the total value of the underlying assets at their strike prices—matches the fund's total asset value, indicating a one-to-one ratio between the fund's exposure to its options strategy and its asset base. This approach showcases the fund's commitment to leveraging derivatives, particularly put options, in a manner that is fully backed by its assets, aiming to manage risk while seeking to maximize returns.
This service involves the fund writing (selling) put options on various U.S. indices, including the S&P 500® Index and other indices within the S&P 500® suite. The strategy is designed to generate income through the premiums received from selling these options, with the fund maintaining a collateralized position that matches the notional value of the underlying instruments at their strike price with the fund's total assets. This approach aims to provide a hedged investment exposure, focusing on major U.S. market indices.
Similar to the strategy employed with U.S. indices, the fund also writes collateralized put options on selected ETFs. This allows the fund to diversify its options writing strategy beyond indices to include a variety of ETFs, potentially spanning multiple sectors or investment themes. By selling put options on ETFs and maintaining a collateralized stance equal to the notional value of these options, the fund seeks to capture premium income while managing its risk exposure through a diversified set of underlying assets.