First Trust Cons. Staples AlphaDEX (FXG) Covered Calls
The First Trust Consumer Staples AlphaDEX Fund (FXG) is a passively managed ETF that tracks the StrataQuant Consumer Staples Index. It utilizes a proprietary quantitative "AlphaDEX" methodology to select and weight companies from the consumer staples sector based on growth and value factors.
You can sell covered calls on First Trust Cons. Staples AlphaDEX 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 FXG (prices last updated Fri 4:16 PM ET):
| First Trust Cons. Staples AlphaDEX (FXG) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 63.07 | +0.42 | 62.51 | 63.60 | 10K | - | 0.6 |
| Covered Calls For First Trust Cons. Staples AlphaDEX (FXG) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Apr 17 | 63 | 0.00 | 63.60 | -0.9% | -14.9% | |
| May 15 | 63 | 0.45 | 63.15 | -0.2% | -1.5% | |
| Subscribers get access to the full covered call chain, and more features. | ||||||
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The First Trust Consumer Staples AlphaDEX Fund (FXG) provides a "smart beta" approach to the consumer staples sector. Unlike traditional market-cap-weighted indices, it uses growth and value signals to select stocks, aiming to outperform the broader consumer staples market. It holds a basket of companies involved in food, beverage, and household product manufacturing, which are typically resilient during economic downturns.
Important Note on Options: FXG is functionally non-optionable. While exchange-listed options may appear in data feeds, the market is a "zombie" with zero meaningful volume and open interest. Any attempt to use this ticker for options strategies—such as covered calls or protective puts—will result in immediate and significant loss of capital due to prohibitive bid-ask spreads. This fund should be treated strictly as a buy-and-hold equity position.
Competitive Landscape
- Consumer Staples Select Sector SPDR Fund (XLP): The definitive, high-liquidity, and optionable benchmark for the consumer staples sector. This is the industry standard for tactical hedging and income generation in this industry.
- SPDR S&P 500 ETF Trust (SPY): Used by traders to proxy broad market risk when specific sector ETFs lack the options depth for professional strategy execution.
Strategic Outlook
FXG’s outlook is driven by the general performance of the consumer staples industry, which is sensitive to raw material input costs and the pricing power of large consumer brands. It acts as a defensive anchor for a long-term portfolio, providing low-beta exposure. It is not designed for active derivative management.
| 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. | BW covered calls | |
| 3. | NVDA covered calls | 8. | HYG covered calls | 3. | PTON covered calls | |
| 4. | KWEB covered calls | 9. | EWZ covered calls | 4. | USO covered calls | |
| 5. | SPY covered calls | 10. | TLT covered calls | 5. | WULF covered calls | |
Want more examples? FXF Covered Calls | FXH 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.
