KEDI US Treasury 20Y+ 2% OTM BuyWrite Index

The index seeks to replicate the performance of a covered call strategy on the price of U.S. Treasury Bond with maturities of 20 years or more, offering investors a structured approach to capturing income while maintaining exposure to the bond price movements. This strategy involves taking long positions in exchange-traded funds (ETFs) that provide direct exposure to U.S. treasury bonds, ensuring alignment with the underlying bond price movement. Simultaneously, the index takes short positions on 2% OTM monthly call options of the iShares 20 Plus Year Treasury Bond ETF (TLT), a widely recognized treasury bond ETF, to generate premium income. By blending these positions, the index aims to balance the benefits of long-term U.S. treasury bond exposure with the income potential of monthly option premiums.