Even with rates going higher, fixed income ETFs don’t tend to move all that much. One way to amplify your cash flow from a fixed income product is by using options.
Last week, some appeared to have sold 25,000 put spreads in the Invesco Senior Loan ETF (BKLN). BKLN has only moved in a $2 range this year, so selling put spread is one way to potentially juice the returns for an otherwise stagnant product.
This post originally appeared at Investors Alley.