WisdomTree reported strong second-quarter results, with revenue of $177.2 million beating analyst estimates of $171.4 million. Adjusted earnings per share came in at $0.31, surpassing the $0.26 consensus. The company's stock rose 2.4% following the announcement. CEO Jonathan Steinberg attributed the performance to broad-based organic asset inflows across US and European operations, successful integration of the Atlantic House acquisition, and growing contributions from Ceres and private markets platforms. CFO Bryan Edmiston highlighted the achievement of a 40%+ operating margin, up from 30.8% in the prior year quarter. During the earnings call, analysts questioned management about Ceres flow patterns, Atlantic House revenue modeling, future mergers and acquisitions strategy, tokenisation partnerships, and plans to incorporate private farmland into exchange-traded funds.

A WisdomTree covered call can cultivate A bountiful yield. WisdomTree (WT) has joined IBD's Sector Leaders list, with the stock breaking out to a new high on Monday. WisdomTree, the New York-based asset management firm and exchange-traded fund (ETF) sponsor, holds more than $164 billion in global assets under management. It's known for its lineup of index-based and actively managed ETFs across equities, fixed income, currencies, and commodities. For income-focused investors, covered calls can offer an additional way to improve the dividend yield on a stock like WisdomTree. The Best Investments Beyond AI Barron's Investor Circle newsletter editor Josh Schafer discusses where investors can find opportunities beyond the AI trade, from consumers and financials to industrials and healthcare. 0 seconds of 14 minutes, 22 secondsVolume 0% The Best Investments Beyond AI See All Videos WisdomTree only pays a 0.6% annualized dividend yield. But investors can significantly increase that return by trading a long-term covered call strategy. A covered call involves buying 100 shares of the underlying stock and simultaneously selling a call option against those shares. Selling the call limits the upside but increases the yield from the investment in the form of option premium. The investor keeps the premium generated from selling calls, no matter what happens with the stock. When trading covered calls, most investors sell monthly calls against their stock to make the most of the effects of time decay. That makes a lot of sense but also requires a lot of active management. What if an investor sold longer-term covered calls against WisdomTree stock? Let's take a look. IBD newsletters. Get exclusive IBD analysis and actionable news daily. Long-Term covered call on WisdomTree stock. On WisdomTree stock, a March 19, 2027-expiring call option with a strike price of 22.50 recently sold for around $2.25 per share, generating $225 in premium per contract. Purchasing 100 shares of WisdomTree stock cost just under $2,100 as of Monday's close. But the net cost can be reduced by the $225 option premium received. Therefore, we have created a yield of (225/1,875) in 228 days, which is 12%, or 19.21% annualized, not including the dividend. That clearly beats the dividend yield on most stocks in the current market and still allows for around $150 of capital appreciation. If WisdomTree closes above 22.50 on the expiration date, the shares will be called away at 22.50. That would leave the trader with a 20% return, which is 32% on an annualized basis, not including the dividends. Please keep in mind that the options market in WT is relatively thin. The spreads between the best bid and best ask tend to be wide. So consider using a limit order at or around the midpoint in between the bid and ask prices. Amid WisdomTree's 5% jump on Tuesday, an investor could also survey the 25 call expiring on March 19. In afternoon trading, the option showed a bid price of 95 cents and an ask price of $3.40. The 30 call displayed a bid of 30 cents and an ask of $1.55. Covered calls are a fantastic way to generate income from a stockholding while also providing some downside protection. Trade pros and cons; WisdomTree ratings at IBD. If WisdomTree closes below 22.50 on the expiration date, the investor can sell another call if they want to continue generating option premium. Investors would need to weigh the pros and cons of the stock before initiating a bullish trade like a covered call. Investor's Business Daily gives WisdomTree stock a Composite Rating of 97 out of a best-possible 99. It has an Earnings Per Share Rating of 99 and a Relative Strength Rating of 92. WisdomTree ranks fourth in its group, according to IBD Stock Checkup, Meanwhile, this cash-secured put trade for Palantir Technology earnings looks like it will work out nicely. Please remember that options are risky, and investors can lose 100% of their investment. This article is for educational purposes only and not a trade recommendation. Remember to always do your own due diligence and consult your financial advisor before making any investment decisions. Gavin McMaster has a masters in applied finance and investment. He specializes in income trading using options, and is conservative in his style. He also believes patience in waiting for the best setups is the key to successful trading. Follow him on X/Twitter at @OptiontradinIQ.