First Trust Industrials AlphaDEX (FXR) Covered Calls
The First Trust Industrials AlphaDEX Fund (FXR) is a smart-beta ETF that tracks the performance of U.S. industrial companies. It utilizes the proprietary AlphaDEX methodology to select stocks from the Russell 1000 index, ranking them based on growth and value factors. This approach is designed to outperform traditional market-capitalization-weighted industrial sector indices by focusing on companies with superior fundamental characteristics.
You can sell covered calls on First Trust Industrials 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 FXR (prices last updated Mon 2:20 PM ET):
| First Trust Industrials AlphaDEX (FXR) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 78.99 | -0.91 | 79.02 | 79.10 | 50K | - | 2.0 |
| Covered Calls For First Trust Industrials AlphaDEX (FXR) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Apr 17 | 79 | 1.00 | 78.10 | 1.2% | 23.1% | |
| May 15 | 79 | 2.25 | 76.85 | 2.8% | 21.7% | |
| Subscribers get access to the full covered call chain, and more features. | ||||||
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The First Trust Industrials AlphaDEX Fund (FXR) provides a quantitative, rules-based approach to the U.S. industrials sector. By applying a multi-factor screening process—including price-to-book ratios, sales growth, and momentum—the fund selects a basket of industrial firms that exhibit strong potential for outperformance. The portfolio covers a wide range of sub-sectors, including aerospace, defense, construction, and electrical equipment.
The AlphaDEX methodology is intended to remove the concentration risk often found in standard market-cap-weighted indices, where a few massive companies might dominate the fund. As a result, FXR typically provides a more balanced exposure across various industrial sub-segments, appealing to investors who seek a sophisticated, multi-factor approach to industrial sector participation.
[Image of industrial supply chain process]Competitive Landscape
FXR competes with some of the most liquid sector ETFs in the market. Its competitive positioning includes:
- AlphaDEX Factor Tilt: Unlike pure market-cap-weighted funds, FXR’s selection process systematically emphasizes growth and value factors, offering a different performance profile than broader industrial indices.
- Broad Diversification: The methodology helps ensure the fund does not become overly reliant on a single industrial sub-sector, providing exposure that is often more granular than passive alternatives.
- Peer Alternatives: FXR competes with widely-held, optionable industrial ETFs such as the Industrial Select Sector SPDR Fund, the Vanguard Industrials ETF, and the iShares U.S. Industrials ETF.
Strategic Outlook and Innovation
The strategic outlook for FXR is based on the enduring importance of U.S. industrial capacity to the global economy. As manufacturing processes modernize through automation and supply chain integration, the fund’s rules-based rebalancing ensures it captures the companies best positioned to benefit from these advancements. Innovation is intrinsic to the AlphaDEX methodology, which maintains a disciplined focus on fundamental performance metrics rather than relying solely on firm size.
Looking ahead, FXR remains a robust tool for investors who prefer a factor-based, data-driven approach to sector investing. Its ability to provide balanced exposure to high-quality industrial firms makes it an efficient instrument for capturing cyclical growth while mitigating the risks associated with traditional, top-heavy market indices.
| 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. | ONDS covered calls | |
| 3. | NVDA covered calls | 8. | TLT covered calls | 3. | CMPX covered calls | |
| 4. | KWEB covered calls | 9. | HYG covered calls | 4. | SGML covered calls | |
| 5. | SPY covered calls | 10. | EWZ covered calls | 5. | BE covered calls | |
Want more examples? FXP Covered Calls | FXU 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.
