First Trust Nasdaq Lux Digital Health Solutions ETF (EKG) Covered Calls
The First Trust Nasdaq Lux Digital Health Solutions ETF (EKG) is a passively managed exchange-traded fund that tracks the Nasdaq Lux Health Tech™ Index. The fund provides exposure to a global portfolio of companies positioned at the intersection of healthcare and technology, focusing on innovations that enable the digitization of patient care, diagnostic monitoring, and data-driven health services.
You can sell covered calls on First Trust Nasdaq Lux Digital Health Solutions 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 EKG (prices last updated Wed 2:20 PM ET):
| First Trust Nasdaq Lux Digital Health Solutions ETF (EKG) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 17.12 | -0.35 | 17.00 | 17.07 | 0K | - | 0.0 |
| Covered Calls For First Trust Nasdaq Lux Digital Health Solutions ETF (EKG) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Mar 20 | 17 | 0.00 | 17.07 | -0.4% | -14.6% | |
| Apr 17 | 17 | 0.00 | 17.07 | -0.4% | -3.8% | |
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The EKG ETF is designed for investors seeking thematic exposure to "digital health"—a sector encompassing telemedicine, advanced medical devices, wearable health technology, and cloud-based healthcare data platforms. By tracking companies that are actively redefining the delivery of medical services, the fund captures the growth potential of modern, tech-enabled clinical infrastructure.
The fund is non-diversified and holds a concentrated portfolio of companies involved in specialized areas such as robotic-assisted surgery, continuous glucose monitoring, and digital patient record management. It serves as a vehicle for accessing the high-growth "digital transformation" trend within the broader healthcare industry, which is increasingly focused on remote monitoring and personalized medicine.
Competitive Landscape
As a specialized thematic ETF, EKG competes with other healthcare and biotech funds that emphasize innovation and technological advancement. Relevant benchmarks and peer ETFs include:
- Health Care Select Sector SPDR Fund (XLV): The industry-standard healthcare ETF, providing a broad benchmark against which to measure the performance of EKG’s specialized tech focus.
- iShares Genomics Immunology and Healthcare ETF (IDNA): A competitor focused on the cutting edge of biotech, which often overlaps with EKG’s interest in advanced medical technologies.
- ARK Genomic Revolution ETF (ARKG): A high-profile thematic competitor focused on the "genomic revolution," offering a different but highly related approach to healthcare innovation.
Strategic Outlook and Innovation
The strategy for the EKG ETF is to provide exposure to companies that are not just "healthcare" businesses, but technology firms that happen to operate in the medical sphere. The fund’s performance is closely tied to the adoption rates of digital health tools by hospitals, insurers, and consumers. Innovation within the fund’s holdings—such as AI-driven diagnostics and remote monitoring software—remains the primary driver for its long-term growth thesis.
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Want more examples? EIX Covered Calls | EL 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.
