Call-writing strategies have been around for a while through closed-end funds (CEFs) and exchange traded notes (ETNs), but most recently, through an exchange traded fund (ETF), the first of its kind.

PowerShares S&P 500 Buy Write Portfolio (PBP) has the potential to overcome some of the downside to investing in a buy-write strategy through other investment tools, and has Roger Nusbaum for TheStreet downright excited.

Buy-write is a strategy that involves buying a stock and selling call options, which are rights to buy stocks at a predetermined price. The upside is smoother returns, as income can be generated by helping to offset declines in a portfolio. The downside is that the strategy could lag when the market is up. In that case, you are forced to sell stocks at below-market prices. PBP offers the potential to avoid this with low volatility and some yield.

Tags: ETNs