Among the universe of BDCs covered at BDC Investor, Golub Capital BDC Inc (NASD: GBDC) has stock options available as one of the tools investors can utilize to manage an investment. BDC stands for Business Development Company, and like REITs (Real Estate Investment Trusts) is a type of pass-through structure typically resulting in high dividends and therefore high yield. With most of a BDC's earnings passing through to shareholders in the form of large dividends, growth in share price is lower than it would be had those earnings been retained. This dynamic can lead to interesting opportunities to sell covered calls, as well as interesting opportunities to sell puts.
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