John Hood First Asset Can-Energy Covered Call ETF OXF-T COMMENT Jul 11, 2017

First of all, you have to like energy because any covered call strategy is bullish. He would rather have cash flow. The cash flow from this particular ETF would be a better way to play the energy space than simply buying it outright. However, they are only writing options against 25% of the portfolio each month, so you have some upside. Some of those oil companies do quite well. He is not a believer that a broad-based basket of big-name oil companies are going to do much more than a broad-based basket of big-name goal companies are going to do.

Covered Call ETFs: They have all struggled this year. Their underlying holdings get called away. If you are looking for a little bit of income on top of your equities this could be a good one. It has nice covered call writing of just 25% so you get some nice protection on the downside.

The question is do you want to time the market or be in the market. If you want the yield, and you are okay with some volatility, then these ETFs are nice to hold. Over the next year the sector is probably mostly sideways. He thinks energy stocks will pull back more over the next 6 months.