Tag: Sales

Popular funds that sell options for income may be moderating the recent volatility in U.S. stocks, continuing the calming effect they have had on the market over the past few months. According to Morningstar, assets in derivative income ETFs (funds that utilize equities and equity derivative portfolios to generate income) have risen to about $71 billion from $33 billion at the end of 2022. Some options mavens argue that these funds and other options-selling strategies have moderated the volatility of stocks, which is another reason for the stock market's prolonged calm.