Before the year closes out, PowerShares was able to launch a new exchange traded fund (ETF). The PowerShares S&P 500 BuyWrite Portfolio (PBP) began trading last week on NYSE Arca and tracks the CBOE S&P 500 BuyWrite Index. This index measures the total rate of return of an S&P 500 covered call strategy which consists of holding a portfolio indexed to the S&P 500, and selling a succession of one-month-at-the-money S&P 500 call options.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.