BofA's Top 10 Covered Call Trades Offer 7%+ Premium

Bank of America identified 10 stocks in the Russell 1000 index that offer covered call option premiums of 7% or more, with upside potential of up to 15% through Aug. 21, the bank said in a note.

The picks are drawn from the iShares Russell 1000 ETF (IWB), which tracks the large-cap index. Covered call writing generates income from option premiums while capping upside. The Aug. 21 expiration aligns with the monthly options cycle.

BofA did not disclose the specific names in the note. The strategy suits investors seeking yield enhancement on core equity holdings without taking on additional downside risk beyond the underlying stock positions.