On Saturday, U.S. and Israeli forces targeted Iranian leadership, resulting in the death of Supreme Leader Ayatollah Ali Khamenei. In response, Iran launched attacks on neighboring countries, causing a significant disruption in the Strait of Hormuz and leading to a surge in oil prices. This geopolitical crisis has seen oil rallying as markets react to the escalating tensions.
The iShares 20+ Year Treasury Bond BuyWrite ETF (TLTW) is anticipated to benefit from this turmoil, as investors typically seek safety in U.S. Treasuries during crises. TLTW has been yielding 8.9% through its strategy of owning long-term bonds while selling covered calls. Additionally, the Global X S&P 500 Covered Call ETF (XYLD) shows a similar potential, providing a yield over 10% as it sells options against a basket of S&P 500 stocks, benefiting from increased volatility.
With the current market instability, both TLTW and XYLD are positioned to offer robust monthly income streams, emphasizing the importance of holding diversified assets as geopolitical tensions rise.
