Call Options may not be sufficient to offset the realized losses
Posted: Tue Feb 18, 2025 5:55 am
If the Reference Index Call Options expire and the market value of the Reference Index decreases during the option period, the premium received by the Fund from selling the Reference Index.
The Fund may sell call options on the Reference Index in the exchange or overthecounter market. Reference Index call options in the OTC market may not be as liquid as exchangelisted options. The number of counterparties willing to enter into Reference Index Call Options as buyers may be limited, or the Fund may consider that the terms offered by such counterparties russia phone number list are less favorable than those available under listed options. Furthermore, the Stock Exchange may suspend option trading in volatile market conditions. If trading is suspended, the Fund may not be able to sell the Reference Index Call Options at an opportune or advantageous time.
Using futures contracts may involve greater risks than investing directly in securities and other more traditional assets. Although the Reference Index futures market is relatively mature, the Fund faces the potential risk that it may not be able to terminate or sell its positions. Risks Risks include, but are not limited to, volatility risk, leverage risk, negative roll yield and “positive spread” risk.
Investing in Reference Index futures and selling Reference Index call options generally requires providing margin. Additional funds may be required to cover margin calls based on the converted daily market prices of Reference Index futures and Reference Index call options.
The Fund may sell call options on the Reference Index in the exchange or overthecounter market. Reference Index call options in the OTC market may not be as liquid as exchangelisted options. The number of counterparties willing to enter into Reference Index Call Options as buyers may be limited, or the Fund may consider that the terms offered by such counterparties russia phone number list are less favorable than those available under listed options. Furthermore, the Stock Exchange may suspend option trading in volatile market conditions. If trading is suspended, the Fund may not be able to sell the Reference Index Call Options at an opportune or advantageous time.
Using futures contracts may involve greater risks than investing directly in securities and other more traditional assets. Although the Reference Index futures market is relatively mature, the Fund faces the potential risk that it may not be able to terminate or sell its positions. Risks Risks include, but are not limited to, volatility risk, leverage risk, negative roll yield and “positive spread” risk.
Investing in Reference Index futures and selling Reference Index call options generally requires providing margin. Additional funds may be required to cover margin calls based on the converted daily market prices of Reference Index futures and Reference Index call options.