Navigating Tech Earnings with a Covered Call Strategy: The Global X Nasdaq 100 ETF

Global X NASDAQ 100 Covered Call ETF US37954Y4834

As the US tech earnings season reaches its peak, the Global X Nasdaq 100 Covered Call ETF finds itself at the center of significant market movements. This income-focused fund’s performance is being shaped by a stark divergence in quarterly results from its largest holdings, offering a real-time case study on how its strategy functions amid sector volatility.

• 12-Month Distribution Yield: 11.94%
• Latest Monthly Dividend: $0.1786
• Net Asset Value (NAV): $17.86

The fund, with assets under management last reported at approximately $8.36 billion, is experiencing contrasting forces from its core components. Recently, Microsoft shares dropped over 10% following a quarterly report that disappointed on cloud segment growth and highlighted rising operational costs.

In a sharp countermove, Meta’s stock surged more than 7% the following day, fueled by an optimistic revenue forecast. Significant price swings in other holdings like IBM (+7%) and Tractor Supply (-5%) also contributed to portfolio activity. For this ETF, which employs a covered call (or "buy-write") approach, substantial rallies like Meta’s can limit the upside potential for its Net Asset Value, which closed at $17.86.

Consistent Income in a Shifting Landscape

Income-seeking investors received the fund's first monthly distribution of the year in January, a payment of $0.1786 per share. The dividend was paid on January 23 to shareholders of record as of that same date, continuing the ETF’s established track record of monthly distributions spanning over twelve years.

Based on the cumulative distributions from the past twelve months, the fund currently sports a trailing distribution yield of 11.94%. Annualized, this translates to an approximate dividend of $2.14 per share.

The Mechanics of Market Calm

The ETF’s core strategy involves holding stocks from the Nasdaq 100 index while simultaneously selling call options on those positions. The primary goal is to generate consistent income from the collected option premiums. During periods of heightened market uncertainty—the implied volatility for the Nasdaq 100 currently sits near 13%—these premiums generally increase. This provides a partial buffer against price declines but comes with the trade-off of capping gains during rapid market advances.

All eyes are now on the upcoming Federal Open Market Committee (FOMC) meeting, as the Federal Reserve's interest rate decisions hold significant sway over the technology sector. The fund is expected to announce its next monthly distribution on February 20, 2026, with the ex-dividend date set for February 23.