Eaton-Vance Tax-Managed Buy-Write Opportunities Fund

The Eaton Vance Tax-Managed Buy-Write Opportunities Fund (ETV), according to the fund's website, invests in a diversified portfolio of common stocks and writes call options on one or more U.S. indices on a substantial portion of the value of its common stock portfolio. The purpose of writing (or selling) call options is to generate current earnings from option premiums received. The fund evaluates returns on an after tax basis and seeks to minimize and defer federal income taxes incurred by shareholders in connection with their investment in the fund.

Specifically, ETV writes call options on the S&P 500 Index and the NASDAQ 100 Index. As of 9/30/2012, the fund's largest holdings were Apple (11.2%), Microsoft Corporation (4.9%), Google (4.1%), Oracle (2.9%), Intel (2.5%), and QUALCOMM Inc (2.3%).

Shares of ETV were purchased in January. It comprises 4.9% of the portfolio. This fund was chosen for inclusion in the portfolio for several reasons. NASDAQ stocks are well represented in the fund. Technology stocks are prominent among the fund's top holdings. My portfolio does not include any individual tech stocks, so this is a way to get some exposure to that sector.

This fund has been featured in several Seeking Alpha articles by Douglas Albo. Eaton Vance is changing the distribution for its funds from quarterly to monthly. In August, 2012, Eaton Vance announced a 10% repurchase of all its funds.

As of January 18, 2013, the net asset value of ETV was $14.20. The market price was $12.96, for a discount of 8.73%.

Quarterly distributions have been steady at $.3323 per share.  The closing price for ETV on January 22, 2013 was $12.93, for a yield at market price of 10.28%.

According to Morningstar, the annual expense ratio for ETV is 1.09%.

ETV is one of five closed-end funds in the portfolio that write call options to generate a higher yield. None of the CEFs in the portfolio uses debt or leverage to enhance yield.

This is not a recommendation to buy ETV. Do your own homework. Everyone's situation is different.