Analysis

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About WisdomTree PutWrite Strategy Fund

PUTW is passively managed to utilize a collateralized put options strategy. The underlying index consists of short exchange-listed put options on the SPDR S&P 500 ETF Trust (SPY) and a cash collateral account that accrues interest at a theoretical 3-month Treasury bill rate daily. At any time, the strategy has two SPY put options with monthly expirations, targeting a monthly premium of 2.5%. On a biweekly basis, the fund closes the options contracts one week prior to their expiration date and sells newly selected SPY puts. Each put option has a strike price that is the at-the-money strike price or the strike price for a SPY put that has a premium closest to 2.5%, whichever is higher. The number of SPY puts sold by the fund varies but is limited by the amount held by the fund in Treasury bills. The potential return of the fund is limited to the amount of the option premiums received. Before Oct. 24, 2022, the fund name was WisdomTree CBOE S&P 500 PutWrite Strategy Fund.