Unit Trusts selling Calls?

Question

Does anyone know of any UK unit trusts that sell call options to generate income?

Read the question 'Top Contributor', I said SELLING calls to generate income.

Answer 1

So you want to buy Call options ?

Buy a call:
The buyer expects that the price may go up.
The buyer pays a premium that he will never get back.
He has the right to exercise the option at the strike price.

Write (sell) a call:
The writer receives the premium.
If the buyer decides to exercise the option, then the writer has to sell the stock at the strike price.
If the buyer does not exercise the option, then the writer profits the premium.


Exactly how do you expect to make money on that ?

You pay a premium for the option and only make money if the underlaying shares go up in value .. and right now everyone is expecting shares to go down ...