The Global X Research Team is pleased to announce the release of its Monthly Covered Call Report, featuring the premium and distribution values attained by its roster of covered call funds in March of 2025. The key takeaways below, as well as those highlighted within the report, recap some of the most pivotal undertakings to have taken place across the markets during the March roll period. They outline their influence over the option pricing environment and help substantiate changing investor sentiments as characterized by specific market indicators.

April 2025 Covered Call Report – Key Takeaways

• At the onset of the March roll period for the Global X suite of covered call products, which ran from February 21st to March 21st, 2025 large-cap equity markets within the United States had already assumed a negative trajectory. It stemmed in part from a Michigan Consumer Sentiment report that signaled elevated concerns around future potential price inflation, and it was maintained as investors dealt with uncertainty regarding potential tariffs to be implemented by the United States.¹ Ultimately, the Nasdaq 100 and S&P 500 descended from their February 19th peaks to the tune of 13.3% and 10.1%, respectively.²
• Although the March roll period commenced with a meaningful drawdown, the Nasdaq 100 and S&P 500 recouped some of their losses over its final week (ended March 21st). Investors likely experienced some selling fatigue after a near-three-week stretch of declines, but they also bid up stocks in response to a Consumer Price Index (CPI) reading that came in softer than expected and a Federal Reserve (Fed) decision at the March meeting to leave interest rates unchanged.³ The Cboe Volatility Index exhibited a negative trend over the latter half of the roll period to reflect the improving outlook. However, it still closed on March 21st at 19.28, potentially signaling a continuation of the choppy environment for the S&P 500.⁴
• Volatility during the March roll period supported the ability of the Global X Nasdaq 100 Covered Call ETF (QYLD) and the Global X S&P 500 Covered Call ETF (XYLD) to procure some of the most generous call option premiums that they’ve witnessed in the last year. And though data points like the abovementioned CPI report have perhaps quelled investor concerns over an impending recession, it represents a lagging indicator that may not paint an accurate picture of the impact of tariffs on inflation. Fed President Jerome Powell suggested tariffs could delay the progress that has been made toward bringing inflation back to their 2% target, and that market noise is making it difficult to evaluate the state of the economy.⁵ This uncertainty may contribute to volatility in the future, promoting the case for covered call strategy.