Teucrium Wheat Fund ETV (WEAT) Covered Calls

Teucrium Wheat Fund provides investors with direct exposure to the wheat market without the need for a futures account. The fund tracks a benchmark of wheat futures contracts, specifically focusing on the second-to-expire, third-to-expire, and the following December Chicago Board of Trade wheat futures. It serves as a transparent and liquid tool for tactical trading, inflation hedging, and global food commodity diversification.

You can sell covered calls on Teucrium Wheat Fund ETV 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 WEAT (prices last updated Fri 4:16 PM ET):

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Core Business and Products

Teucrium Wheat Fund (WEAT) is a specialized exchange-traded product designed to track the price of wheat through the futures market. Unlike equity-based ETFs, WEAT is structured as a commodity pool and primarily holds Chicago Board of Trade (CBOT) wheat futures contracts. To mitigate the impact of "contango" (the cost of rolling futures contracts), the fund utilizes a specific benchmark strategy rather than just holding the front-month contract.

The fund's benchmark is composed of three specific wheat futures contracts:

1. The second-to-expire CBOT wheat futures contract (weighted 35%).
2. The third-to-expire CBOT wheat futures contract (weighted 30%).
3. The CBOT wheat futures contract expiring in the December following the expiration of the third-to-expire contract (weighted 35%).

This laddered approach is intended to reduce the volatility associated with rolling monthly contracts. WEAT is frequently used by investors as a hedge against global food inflation or geopolitical instability in major wheat-exporting regions.

Competitive Landscape

WEAT is the leading "pure-play" wheat ETF in the United States. While it is highly liquid and fully optionable, it carries unique risks, including the potential for "roll yield" to erode returns over time. It is a popular vehicle for covered call writers looking to capitalize on the high volatility often found in grain markets. In 2026, it remains the standard for retail wheat exposure.

Key peers and related agricultural investment vehicles include:

1. Invesco DB Agriculture Fund: A broad-based peer that includes wheat alongside corn, soybeans, sugar, and livestock.
2. Teucrium Corn Fund: A sibling fund focusing exclusively on the corn futures market with a similar laddered structure.
3. Teucrium Soybean Fund: A sibling fund providing direct exposure to soybean futures.
4. Teucrium Agricultural Strategy ETF: A fund-of-funds that provides exposure to corn, wheat, soybeans, and sugar.
5. Teucrium Sugar Fund: A sibling commodity peer with a liquid and active options market.

Strategic Outlook and Innovation

The strategic utility of WEAT in 2026 is driven by its role as a "hard asset" during periods of currency devaluation or supply chain disruption. Wheat remains one of the world's most strategically important commodities, and WEAT provides a transparent gateway for retail investors to express a view on global caloric demand.

Innovation at Teucrium involves the continuous refinement of the rolling schedule to optimize the fund’s "roll yield" and minimize transaction costs. The management team provides nightly transparency into all holdings and publishes a clear schedule of future roll dates. While commodity ETFs like WEAT do not pay traditional dividends, they remain essential components for portfolios seeking to de-correlate from traditional stock and bond markets.

Want more examples? WDS Covered Calls | WEBL Covered Calls