iShares Currency Hedged MSCI Eurozone ETF (HEZU) Covered Calls
The iShares Currency Hedged MSCI Eurozone ETF (HEZU) is a passively managed exchange-traded fund that tracks the MSCI EMU 100% USD Hedged Index. The fund provides exposure to large- and mid-cap equities from developed Eurozone countries while simultaneously hedging out exposure to the Euro against the U.S. Dollar.
You can sell covered calls on iShares Currency Hedged MSCI Eurozone 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 HEZU (prices last updated Fri 4:16 PM ET):
| iShares Currency Hedged MSCI Eurozone ETF (HEZU) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 42.28 | -0.48 | 21.40 | 63.52 | 18K | - | 0.7 |
| Covered Calls For iShares Currency Hedged MSCI Eurozone ETF (HEZU) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Apr 17 | 42 | 0.00 | 63.52 | -33.9% | -562.4% | |
| May 15 | 42 | 0.35 | 63.17 | -33.5% | -244.5% | |
| Subscribers get access to the full covered call chain, and more features. | ||||||
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The iShares Currency Hedged MSCI Eurozone ETF (HEZU) is designed for investors who want to capture the equity performance of the Eurozone but prefer to neutralize the impact of Euro/USD currency fluctuations. By holding a portfolio of stocks—effectively replicating the exposure of its unhedged counterpart, EZU—and layering on short forward contracts to hedge the currency risk, HEZU provides a "pure" look at Eurozone corporate fundamentals in USD terms.
Important Note on Options: HEZU is functionally non-optionable. While exchange-listed options may technically appear in data feeds, the market is characterized by near-zero volume and open interest. Any attempt to use this ticker for options strategies—such as covered calls or protective puts—will result in immediate and significant loss of capital due to prohibitive bid-ask spreads. This fund should be treated strictly as a buy-and-hold equity position.
Competitive Landscape
Investors seeking liquid, optionable alternatives to express a view on international equities or to hedge regional exposure should utilize more liquid, industry-standard benchmarks:
- iShares MSCI EAFE ETF (EFA): The core, highly liquid, and optionable benchmark for developed international markets; it is the industry standard for institutional and retail hedging of international exposure.
- iShares MSCI Eurozone ETF (EZU): The unhedged, liquid, and optionable peer. For traders who need options liquidity, pairing EZU with a separate currency hedge (if necessary) is the standard professional approach.
- Vanguard FTSE Europe ETF (VGK): A highly liquid, optionable alternative for broad-based European market exposure.
Strategic Outlook
HEZU’s outlook is driven by the corporate earnings of Eurozone-based multinationals, European economic growth, and central bank policy differences between the ECB and the Fed. It is a specialized tool for investors who are bullish on European equities but want to protect their returns from currency-driven volatility. It is not designed for tactical derivative management, but rather as a long-term strategic component of a globally diversified portfolio.
| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV covered calls | 6. | QQQ covered calls | 1. | REPL covered calls | |
| 2. | EEM covered calls | 7. | GLD covered calls | 2. | BW covered calls | |
| 3. | NVDA covered calls | 8. | HYG covered calls | 3. | PTON covered calls | |
| 4. | KWEB covered calls | 9. | EWZ covered calls | 4. | USO covered calls | |
| 5. | SPY covered calls | 10. | TLT covered calls | 5. | WULF covered calls | |
Want more examples? HEWJ Covered Calls | HFWA 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.
