I'm confused too. They seem to be doing both. Holding common stock and selling index options. "the Fund will normally invest at least 80% of its total assets in a diversified portfolio of common stocks, seeking to exceed the total return performance of the S&P 500" cefconnect.com lists the stocks held under 'portfolio characteristics' Then there's also"The Fund intends to sell index options that qualify for treatment as section 1256 contracts on which capital gains and losses are generally treated as 60% long-term and 40% short-term, regardless of holding period. Options strategy of writing (selling) index call options on the S&P 500 (at least 80%) and the NASDAQ-100 (at least 80%) " Not sure what it all means.