Following a fully fledged 10%-plus stock market correction, itâ??s my firm view that income investors should take a hard look at some well-managed closed-end funds that invest in big-capitalization technology stocks and write covered calls against their portfolios.
Volatility has returned to the market and that translates to the widening of option premiums in both puts and calls. There has been a lot of short-term technical damage done that will take months to sort out, but at the same time, the market is offering technology investors an excellent entry point in the best blue-chip tech stocks that offer attractive option income opportunities.
The tech sector has the least amount of risk associated with geopolitical issues, commodity price swings, sweeping government policy changes, consumer seasonality, political party affiliation, weather and Fed policy. The tech sector is also where the most attention is paid by the business media, and for good reason.