iShares Agency Bond ETF (AGZ) Covered Calls
The iShares Agency Bond ETF (AGZ) is a passively managed exchange-traded fund that tracks the ICE U.S. Agency Bond Index. The fund provides exposure to U.S. Agency debt, which includes fixed-rate, investment-grade securities issued or guaranteed by U.S. government agencies or government-sponsored enterprises (GSEs).
You can sell covered calls on iShares Agency Bond ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for AGZ (prices last updated Wed 4:16 PM ET):
| iShares Agency Bond ETF (AGZ) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 109.38 | +0.01 | 83.01 | 111.00 | 17K | - | 0.7 |
| Covered Calls For iShares Agency Bond ETF (AGZ) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Apr 17 | 109 | 0.00 | 111.00 | -1.8% | -38.6% | |
| May 15 | 109 | 0.00 | 111.00 | -1.8% | -14.6% | |
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The iShares Agency Bond ETF (AGZ) serves as a defensive fixed-income tool, offering investors exposure to securities backed by government agencies like the Federal Home Loan Banks or the Federal National Mortgage Association (Fannie Mae). Because these bonds carry the implicit or explicit backing of the U.S. government, they are perceived to have lower default risk than corporate bonds, making AGZ a common "flight-to-quality" allocation in a diversified portfolio.
Important Note on Options: AGZ is functionally non-optionable. While some data feeds may show a technical options chain, there is no meaningful liquidity, volume, or open interest. Any attempt to use this ticker for income-generating or hedging strategies will result in prohibitive bid-ask spreads and immediate execution failure. This fund should be utilized strictly for long-term passive fixed-income allocation.
Competitive Landscape
Investors seeking liquid, optionable vehicles to hedge interest rate risk or express a directional view on bonds should look to the industry-standard "liquidity hubs," which provide the depth necessary for strategy execution:
- iShares 20+ Year Treasury Bond ETF (TLT): The most liquid and widely traded optionable bond ETF; it is the industry standard for interest-rate hedging and tactical duration management.
- iShares 7-10 Year Treasury Bond ETF (IEF): A core, highly liquid, and optionable benchmark for intermediate-term U.S. government debt.
- iShares Core U.S. Aggregate Bond ETF (AGG): The primary, optionable benchmark for the broader U.S. bond market.
Strategic Outlook
AGZ’s outlook is driven by the path of Federal Reserve interest rate policy, the supply/demand dynamics of agency debt, and the overall demand for safe-haven assets. It is not designed for tactical derivative management; rather, it is a stable, income-yielding component for a portfolio, intended to provide ballast during periods of heightened equity market volatility.
| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV covered calls | 6. | QQQ covered calls | 1. | REPL covered calls | |
| 2. | EEM covered calls | 7. | GLD covered calls | 2. | CMPX covered calls | |
| 3. | NVDA covered calls | 8. | TLT covered calls | 3. | LUNR covered calls | |
| 4. | KWEB covered calls | 9. | HYG covered calls | 4. | WULF covered calls | |
| 5. | SPY covered calls | 10. | EWZ covered calls | 5. | APLD covered calls | |
Want more examples? AGYS Covered Calls | AHCO Covered Calls
Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.
Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.
