iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) Covered Calls
iShares 25+ Year Treasury STRIPS Bond ETF seeks to track the investment results of an index composed of the principal payments of U.S. Treasury bonds (STRIPS) with remaining maturities of at least 25 years. The fund offers capital-efficient, high-duration exposure to the ultra-long end of the U.S. Treasury curve, making it highly sensitive to changes in long-term interest rates.
You can sell covered calls on iShares 25+ Year Treasury STRIPS Bond ETF 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 GOVZ (prices last updated Fri 4:16 PM ET):
| iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 9.17 | +0.11 | 9.16 | 9.18 | 1.6M | - | 0.0 |
| Covered Calls For iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| May 15 | 9 | 0.20 | 8.98 | 0.2% | 2.5% | |
| Jun 18 | 9 | 0.00 | 9.18 | -2.0% | -11.6% | |
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Core Business and Products
iShares 25+ Year Treasury STRIPS Bond ETF (GOVZ) is a specialized fixed-income vehicle that provides precise exposure to the "stripped" principal of long-dated U.S. Treasuries. By removing coupon payments, the fund achieves an effective duration of approximately 26.7 years, making it one of the most volatile and "convex" non-leveraged bond funds available. As of April 2026, GOVZ manages roughly $300 million in assets.
A key corporate action is scheduled for 2026: On March 27, 2026, GOVZ announced a reverse stock split, effective after the close on May 4, 2026. This is intended to reset the trading price to a more institutional range following a period of high volatility in long-term yields.
Competitive Landscape
GOVZ is BlackRock’s low-cost challenger in the zero-coupon space, featuring a 0.10% net expense ratio (supported by a fee waiver). It is fully optionable and competes primarily with other high-duration "STRIPS" funds and the broader long-bond benchmark, TLT.
Key peers and related long-duration vehicles include:
- PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF: The primary peer with a 0.15% expense ratio and similar duration profile.
- Vanguard Extended Duration Treasury ETF: A major peer using STRIPS to target the long end of the curve.
- iShares 20+ Year Treasury Bond ETF: The liquidity leader in long bonds, though with lower duration (approx. 17 years) than GOVZ.
- Direxion Daily 20+ Year Treasury Bull 3X Shares: A leveraged peer providing 3x the daily volatility of long Treasuries.
Strategic Outlook and Innovation
In 2026, GOVZ is a favorite for "long-convexity" traders. Since it pays no coupons, its price movements are mathematically more explosive during rate cuts than standard Treasuries. Despite its zero-coupon nature, the fund provides monthly distributions based on the internal accretion of its bonds; the April 2026 distribution resulted in a 30-Day SEC yield of 5.01%. With its recent Bronze Morningstar rating, GOVZ remains a premier tool for institutional hedging and tactical rate speculation.
| Top 10 Open Interest For May 15 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV covered calls | 6. | GLD covered calls | 1. | CMPX covered calls | |
| 2. | NVDA covered calls | 7. | HYG covered calls | 2. | FRMI covered calls | |
| 3. | TLT covered calls | 8. | QQQ covered calls | 3. | AXTI covered calls | |
| 4. | IBIT covered calls | 9. | KWEB covered calls | 4. | STNE covered calls | |
| 5. | SPY covered calls | 10. | EEM covered calls | 5. | CLF covered calls | |
Want more examples? GOVT Covered Calls | GPC Covered Calls
Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.
Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.
