Nuveen NASDAQ 100 Dynamic Overwrite Fund (NASDAQ:QQQX) Sees Large Increase in Short Interest

Key Points

• Short interest surged 36.5% in April to 155,606 shares (about 0.3% of shares outstanding), with a days-to-cover ratio of roughly 0.9 based on average daily volume.
• High dividend yield: QQQX paid a $0.615 quarterly dividend (ex-dividend March 13), implying a $2.46 annualized payout and an approximate 8.3% yield.
• Fund profile and trading: QQQX is a closed-end fund that uses a dynamic covered-call strategy on the NASDAQ‑100; shares traded near $29.78 (1‑year range $23.30–$30.28) and about 23.6% of the stock is held by institutional investors.

Nuveen NASDAQ 100 Dynamic Overwrite Fund (NASDAQ:QQQX - Get Free Report) was the recipient of a large growth in short interest during the month of April. As of April 15th, there was short interest totaling 155,606 shares, a growth of 36.5% from the March 31st total of 113,961 shares. Approximately 0.3% of the company's stock are short sold. Based on an average daily volume of 169,330 shares, the days-to-cover ratio is currently 0.9 days.

Nuveen NASDAQ 100 Dynamic Overwrite Fund Trading Down 1.4%

Shares of NASDAQ QQQX traded down $0.42 during mid-day trading on Tuesday, reaching $29.78. 78,634 shares of the company were exchanged, compared to its average volume of 132,769. Nuveen NASDAQ 100 Dynamic Overwrite Fund has a 1 year low of $23.30 and a 1 year high of $30.28. The firm has a 50-day moving average of $27.93 and a 200 day moving average of $27.97.

Nuveen NASDAQ 100 Dynamic Overwrite Fund Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 1st. Investors of record on Friday, March 13th were paid a dividend of $0.615 per share. This represents a $2.46 dividend on an annualized basis and a dividend yield of 8.3%. The ex-dividend date was Friday, March 13th.

Institutional Investors Weigh In On Nuveen NASDAQ 100 Dynamic Overwrite Fund

A number of hedge funds have recently made changes to their positions in the stock. Moors & Cabot Inc. grew its holdings in Nuveen NASDAQ 100 Dynamic Overwrite Fund by 2.2% in the fourth quarter. Moors & Cabot Inc. now owns 17,636 shares of the company's stock valued at $503,000 after purchasing an additional 380 shares during the period. Private Advisor Group LLC grew its holdings in Nuveen NASDAQ 100 Dynamic Overwrite Fund by 1.3% in the first quarter. Private Advisor Group LLC now owns 30,266 shares of the company's stock valued at $807,000 after purchasing an additional 402 shares during the period. PMG Family Office LLC grew its holdings in Nuveen NASDAQ 100 Dynamic Overwrite Fund by 0.7% in the first quarter. PMG Family Office LLC now owns 60,228 shares of the company's stock valued at $1,643,000 after purchasing an additional 419 shares during the period. Equitable Holdings Inc. grew its holdings in Nuveen NASDAQ 100 Dynamic Overwrite Fund by 5.6% in the fourth quarter. Equitable Holdings Inc. now owns 8,538 shares of the company's stock valued at $244,000 after purchasing an additional 450 shares during the period. Finally, Alteri Wealth LLC grew its holdings in Nuveen NASDAQ 100 Dynamic Overwrite Fund by 2.4% in the fourth quarter. Alteri Wealth LLC now owns 20,759 shares of the company's stock valued at $592,000 after purchasing an additional 478 shares during the period. 23.61% of the stock is currently owned by hedge funds and other institutional investors.

About Nuveen NASDAQ 100 Dynamic Overwrite Fund

The Nuveen NASDAQ 100 Dynamic Overwrite Fund NASDAQ: QQQX is a closed-end management investment company that seeks to provide investors with a high level of current income while maintaining prospects for capital appreciation. The fund primarily invests in the equity securities included in the NASDAQ-100 Index, giving investors exposure to leading U.S. companies in the technology, consumer services, healthcare and industrial sectors. As a publicly traded fund, QQQX offers daily liquidity through its listing on the Nasdaq Stock Market.

In pursuit of its income objective, QQQX employs a dynamic covered call strategy, writing call options on its NASDAQ-100 holdings to generate option premium.

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