Company: ETV
Filing Date: 2025-05-01
Form Type: 424B5
Source: 0001193125-25-109401
Chunk: 70

Company: Eaton Vance Tax-Managed Buy-Write Opportunities Fund
Filing Date: 2025-05-01
Form: 424B5
Chunk 70
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 its options program most effectively, the Fund may also sell index options that trade in OTC markets. Index options differ from options on individual securities in that index options (i) typically are settled in cash rather than by delivery of securities and (ii) reflect price fluctuations in a group of securities or segments of the securities market rather than price fluctuations in a single security. Option contracts are originated and standardized by the OCC. The Fund will sell S&P 500 ®and NASDAQ‑100 ®call options that are generally issued, guaranteed and cleared by the OCC. S&P 500 ®and NASDAQ‑100 ®index options currently trade exclusively on the Chicago Board Options Exchange. Selling Index Call Options.The Fund’s index option strategy is designed to produce current cash flow from options premiums and to moderate the volatility of the Fund’s returns. This index option strategy is of a hedging nature, and is not designed to speculate on equity market performance. As the seller of S&P 500 ®and NASDAQ‑100 ®call options, the Fund will receive cash (the premium) from the purchasers thereof. The purchaser of an index option has the right to any appreciation in the value of the applicable index over a fixed price (the exercise price) as of a specified date in the future (the option valuation date). Generally, the Fund intends to sell S&P 500 ®and NASDAQ‑100 ®call options that are slightly “out‑of‑the‑money” (i.e., the exercise price generally will be slightly above the current level of the applicable index when the option is sold). The Fund may also sell index options that are more substantially “out‑of‑the‑money.” Such options that are more substantially “out‑of‑the‑money” provide greater potential for the Fund to realize capital appreciation on its portfolio stocks but generally would pay a lower premium than options that are slightly “out‑of‑the‑money.” The Fund will, in effect, sell the potential appreciation in the value of the S&P 500 ®or NASDAQ‑100 ®above the exercise price in exchange for the option premium received. If, at expiration, an S&P 500 ®or NASDAQ‑100 ®call option sold by the Fund is exercised, the Fund will pay the purchaser the difference between the cash value of the applicable index and the exercise price of the option. The premium, the exercise price and the market value of the S&P 500 ®or NASDAQ‑100 ®, as applicable, will determine the gain or loss realized