Investors are closely monitoring the Nuveen NASDAQ 100 Dynamic Overwrite Fund (NASDAQ: QQQX), which experienced a remarkable increase in short interest for December 2023. As of December 15, short interest surged to a total of 47,630 shares, marking a sharp rise of 140.2% compared to the 19,833 shares reported at the end of November.
The current average daily trading volume for QQQX stands at 83,185 shares, resulting in a days-to-cover ratio of 0.6 days. This means that, at the current trading volume, it would take less than a day for short sellers to cover their positions. Notably, only 0.1% of the fund’s shares are currently sold short, indicating a relatively low level of bearish sentiment among investors.
Stock Performance and Dividends
On December 15, shares of the Nuveen NASDAQ 100 Dynamic Overwrite Fund rose by 0.1%, trading at $28.55 during mid-day sessions. The trading volume for that day was 44,390 shares, significantly lower than the fund’s average volume of 130,985 shares. Over the past year, QQQX has seen considerable price movement, with a 12-month low of $20.34 and a high of $28.63.
In addition to the increase in short interest, the fund announced a quarterly dividend of $0.56 per share, scheduled for distribution on December 31, 2023. Investors on record as of December 15, 2023, will receive this dividend, which translates to an annualized yield of 7.8%. The ex-dividend date for this payment is also set for December 15.
About the Fund
The Nuveen NASDAQ 100 Dynamic Overwrite Fund is a closed-end management investment company that primarily focuses on generating a high level of current income while offering potential for capital appreciation. The fund largely invests in equity securities that are part of the NASDAQ-100 Index, providing exposure to prominent U.S. companies across various sectors, including technology, consumer services, healthcare, and industrials.
To achieve its income goals, the fund employs a dynamic covered call strategy, which involves writing call options on its NASDAQ-100 holdings to generate additional income through option premiums. As a publicly traded fund, QQQX offers investors daily liquidity through its listing on the Nasdaq Stock Market.
With these recent developments, the Nuveen NASDAQ 100 Dynamic Overwrite Fund continues to be a focal point for investors keen on exploring income-generating investment options in a fluctuating market.
