I've been looking over this new offer of a listed buy-write fund: http://www.aurorafunds.com.au/aurora-home.htm
It looks like the best time to write calls is when prices are going down or sideways (if you are the writer); that appears to be the conventional wisdom- see the ASX fact sheet in the link above (the red brochure). Volatility appears to be historically low for the local stockmarket so that would be another benefit, more bang for your buck. I'd forgotten that they had a buy-write index as well, guess more research for me, might be a good diversification tool when things get choppy.
Any thoughts generally on the best conditions for such a fund strategy?
We still seem to have some puff left in the old bull so it may be safer to get into it later, having said that it's tough to call a top, we could just drift up and down for a year or two and then crash....or we may just keep powering on with exhaustion years away. Merril Lynch is managing it, not sure what their record is, I don't think they do any market making.