Company: ETV
Filing Date: 2025-05-01
Form Type: 424B5
Source: 0001193125-25-109401
Chunk: 73

Company: Eaton Vance Tax-Managed Buy-Write Opportunities Fund
Filing Date: 2025-05-01
Form: 424B5
Chunk 73
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. Transaction costs may be especially significant in option strategies calling for multiple purchases and sales of options over short periods of time or concurrently. Transaction costs associated with the Fund’s options strategy will vary depending on market circumstances and other factors. The standard contract size for exchange-listed S&P 500 ®and NASDAQ‑100 ®index options is the index level multiplied by $100. There are three items needed to identify a particular S&P 500 ®or NASDAQ‑100 ®index option contract: (1) the expiration month, (2) the exercise (or strike) price and (3) the type (i.e., call or put). A call option whose exercise price is above the current price of the underlying index is called “out‑of‑the‑money,” and a call option whose exercise price is below the current price of the underlying index is called “in‑the‑money.” Writing index call options can lower the variability of potential return outcomes and can enhance returns in three of four market performance scenarios (down, flat or moderately up). Only when the level of the index at option expiration exceeds the sum of the premium received and the option exercise price would the buy‑write strategy be expected to provide lower returns than the stock portfolio-only alternative. The amount of downside protection afforded by the buy‑write strategy in declining market scenarios is limited, however, to the amount of option premium received. If the S&P 500 ®or NASDAQ‑100 ®declines by an amount greater than the option premium, a buy‑write strategy consisting of owning all of the stocks in the index and writing index options on the value thereof would generate an investment loss. The Fund’s returns from implementing a buy‑write strategy using S&P 500 ®and NASDAQ‑100 ®options will also be substantially affected by the performance of Segment One of the Fund’s portfolio versus the S&P 500 ®and the performance of Segment Two of the Fund’s portfolio versus the NASDAQ‑100 ®. The returns on these segments are unlikely to be the same as the returns on the corresponding indices. Also, the Fund’s returns from its buy‑write strategy will be affected by the level of premiums available on options written on the S&P 500 ®and the NASDAQ‑100 ®. 31 ADDITIONAL INVESTMENT PRACTICES In addition to its primary investment policies, the Fund may engage in the following investment practices to a limited extent. The Fund may invest in the aggregate up to 20% of its total assets in all investments described below