iShares Technology Opportunities Active ETF (TEK) Covered Calls

The iShares Technology Opportunities Active ETF is an actively managed exchange-traded fund that seeks long-term capital appreciation by investing in global technology companies. The fund identifies established leaders and emerging disruptors across sectors such as software, semiconductors, and internet services. By leveraging active management, the fund aims to outperform traditional passive tech benchmarks by dynamically adjusting exposure to high-growth themes and market innovations.

You can sell covered calls on iShares Technology Opportunities Active 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 TEK (prices last updated Wed 10:35 AM ET):

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iShares Technology Opportunities Active ETF (TEK) is an actively managed vehicle that provides a high-conviction approach to the global technology sector. Unlike passive funds that strictly follow a market-cap index, TEK allows portfolio managers to select companies across all market capitalizations and geographies that show superior growth potential.

Investment Strategy and Holdings

Managed by BlackRock’s experienced technology investment team, the fund focuses on "mega-forces" like Artificial Intelligence, cloud computing, and digital transformation. The portfolio is relatively concentrated, typically holding around 50 to 60 positions. As of early 2026, the fund is anchored by global semiconductor and software giants with high-volume U.S. options markets, including NVIDIA, Broadcom, Apple, Microsoft, and Taiwan Semiconductor.

Competitive Landscape

TEK competes with both passive industry giants and other active thematic funds. Its primary rivals include the Technology Select Sector SPDR ETF and the Vanguard Information Technology ETF for core tech exposure. In the active and thematic space, it is often compared to the ARK Innovation ETF and the iShares Future AI & Tech ETF. These competitors all offer robust options liquidity, making them a "sweet spot" for investors looking to trade around high-growth tech volatility.

Strategic Outlook and Innovation

The outlook for TEK is centered on the continued scaling of AI infrastructure and the integration of machine learning into enterprise software. Because it is actively managed, the fund has the flexibility to rotate out of "expensive" mega-cap names and into mid-cap innovators that passive indexes might overlook until they reach a certain size. This alpha-seeking approach carries a higher expense ratio (0.75%) compared to passive funds, but it provides investors with a more nimble way to navigate the rapidly changing tech landscape where yesterday’s leaders can quickly become tomorrow’s laggards.

Management uses a fundamental, bottom-up research process to identify companies with durable competitive advantages. For covered call writers, TEK offers a unique profile: it captures the high-beta movement typical of a concentrated tech portfolio, which often translates into higher option premiums. By writing calls against TEK, investors can potentially generate significant income while maintaining exposure to a professionally curated selection of the world’s most innovative companies, rather than just the largest ones by market cap.

Want more examples? TECS Covered Calls | TEL Covered Calls