Nuveen Equity Premium Opportunity Fund (NYSE:JSN)

Knifecatcher1 (50.08) Submitted: 1/3/2008 11:12:24 AM : Start Price: $10.35 JSN Score: +18.79

Nuveen Equity Premium Opportunity is an ETF recommended in a recent WSJ article:
http://online.wsj.com/article/SB119715291450118441.html?mod=yahoo_hs&ru=yahoo

JSN's objective from the web site: "... primary investment objective is to provide a high level of current income and gains from net index option premiums. The fund's secondary investment objective is to seek capital appreciation ... ". "...weighting of 75% of the S&P 500 Index price movement, and 25% of the NASDAQ 100 Index ..." "... add to its common stock dividend income by selling call options ..."

JSN sells at an 11% discount to the value of its underlying securities (as of 1-3-2008). Dividend yield, bolstered by selling options, is ~ 10.90%. Low fees of 0.56%.

Top holdings are Apple, Exxon Mobil, Microsoft, GE, AT&T, Cisco, Citigroup (already heavily discounted), Intel, Bank of America, Google.

In the current uncertain market, a discounted ETF holding mega-cap growth stocks and a near- 11% cash payout looks very attractive to me. I think it will be the market and give a much smoother ride.

Disclosure: I own JSN shares in my portfolio.