Nuveen S&P 500 Buy-Write Income Fund (BXMX)

Nuveen S&P 500 Buy-Write Income Fund (NYSE: BXMX - Get Free Report) saw a large decrease in short interest during the month of January. As of January 30th, there was short interest totaling 49,685 shares, a decrease of 14.8% from the January 15th total of 58,343 shares. Based on an average trading volume of 153,073 shares,

Nuveen S&P 500 Buy-Write Income Fund remains a buy, trading at a 9.25% discount to NAV—well below its 5-year average. BXMX delivers a 7.4% dividend yield with consistent payouts, leveraging an at-the-money call writing strategy for tax-efficient income. The fund's option strategy caps upside, causing BXMX to underperform in strong bull markets but providing resilience and lower volatility during downturns.

Nuveen S&P 500 Buy-Write Income Fund remains a buy due to its attractive discount to NAV and reliable income generation. BXMX offers a 7.7% dividend yield, consistent distributions, and tax-efficient return of capital, appealing to income-focused investors. While BXMX underperforms traditional S&P 500 ETFs and newer option ETFs in total return, it excels in income stability and quality holdings.

Nuveen S&P 500 Buy-Write Income Fund offers a quarterly distribution at a 7.55% yield and trades at an attractive -8.9% discount to NAV. I believe that while the distribution rate is relatively high compared to something like the S&P 500 Index, it is due for a boost. BXMX's 100% call overwrite strategy has meant it lags behind newer ETF peers, like SPYI and XDTE, in recent total returns.

CHICAGO--(BUSINESS WIRE)--The Boards of Trustees of Nuveen S&P 500 Buy-Write Income Fund (NYSE: BXMX), Nuveen Dow 30℠ Dynamic Overwrite Fund (NYSE: DIAX), and Nuveen S&P 500 Dynamic Overwrite Fund (NYSE: SPXX) have approved a proposal to merge the funds. The proposed mergers, if approved by shareholders, would combine BXMX and DIAX into SPXX. The mergers are intended to create a larger fund with lower net operating expenses and increased trading volume on the exchange for common shares.

Nuveen S&P 500 Buy-Write Income Fund offers high income via covered call strategy on the S&P 500 in addition to equity holdings, appealing for income-focused investors seeking equity exposure. The BXMX fund's top holdings in mega-cap tech stocks benefit from strong cloud and AI growth trends, supporting a bullish outlook. BXMX outperforms peer ETV on total returns, boasts a 7.44% yield, and has a competitive management fee and strong liquidity.

We closed out the first half of 2025, making it an appropriate time to give the overall CEF space a fresh look for potential opportunities. As the broader equity indexes have been performing quite well, discounts in the CEF space have narrowed overall. The best relative value more broadly is in the municipal bond space and the "hybrid" funds.

The Nuveen S&P 500 Buy-Write Income Fund (BXMX) offers a consistent high yield (8.3%) and maintains value over time, making it a solid hold. BXMX focuses on income generation through covered calls, not capital appreciation, and has a relatively low expense ratio of 0.89%. The fund may be deployed with the strategy of swapping to growth-oriented or conservative portfolios based on market conditions.

BXMX offers attractive income potential with an 8.4% dividend yield, supported by a strategic option writing approach and diversified sector exposure. The fund trades at a 9.53% discount to NAV, presenting an attractive accumulation opportunity given its history of capital preservation and consistent performance. BXMX is ideal for income-focused investors, offering tax-efficient distributions and resilience during market declines, despite underperforming traditional ETFs in bull markets.

BXMX is a buy-write CEF that underperforms in bull markets but buffers downside in bear markets with high option premiums. The fund's structural features limit upside participation to 2% monthly, making it less suitable for violent equity rallies. BXMX trades at a -9% discount to NAV, with a countercyclical premium/discount feature influenced by market regimes.

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The Nuveen S&P 500 Buy-Write Income Fund (BXMX) has seen its discount widen substantially, making it a more tempting investment choice. BXMX is a call-writing fund that writes calls against the S&P 500 Index at a target of 100% overwrite. Thanks to the call-writing strategy, the fund offers investors a ~7.5% distribution rate that is paid quarterly.

Nuveen S&P 500 Buy-Write Income Fund uses options to reduce volatility and increase income from its portfolio of global equities. The fund's top holdings are primarily large-cap stocks, with calls written on the entire equity portfolio. We tell you why this is a great time to switch to this fund if you own XYLD, a popular covered call ETF.

NEW YORK--(BUSINESS WIRE)--The 19(a) distribution notices for six Nuveen closed-end funds are now available. These informational notices provide further details on the sources of the funds' regular quarterly distributions and follows the most recent quarterly distribution announcements. The full text of these notices is available below or on the Nuveen website via Distribution Source Estimates. Important Information Regarding Distributions March 28, 2024: THIS NOTICE IS FOR INFORMATIONAL PURPOS.

NEW YORK--(BUSINESS WIRE)--Several Nuveen closed-end funds have declared distributions. These funds represent investment strategies for investors seeking diversified sources of cash flow to prepare for and sustain their retirement income needs. For further information regarding fund distributions, including earnings, undistributed net investment income, and notices, please visit www.nuveen.com/cef. Additionally, several leveraged municipal closed-end funds have announced distribution rate incre.

Nuveen S&P 500 Buy-Write Income Fund focuses on generating income through covered calls, offering a distribution yield of 7.2%. Covered call funds have gained popularity for their ability to generate income in all market conditions. Virtually all of this fund's total returns come from distributions and there is no dividend growth so it will only suit certain investors.