A lot of people on this board don't chart the Section 19 notices and are living under a desperate illusion. Read the Section 19 notice just published on the Blackrock site and you'll see that big fat dividend of the last quarter was composed of 80% (up from around 40% in the previous quarter) return of capital, that is, your principal being handed back to you in order to maintain a certain "yield." Your real yield, that is, investment income, on a 20% dividend is really only 4%. And since the portfolio is 40-60% overwritten with options, not only will there be a limit to the upside but a lot of that "investment income" is option income and therefore taxed at the higher rate of ordinary income. Take the not unrealistic notion that half of the "investment income" is option income. If you're in the high tax bracket in a state with around 5% personal income tax, your after-tax yield is around 2.8%. Deduct the eye-popping -- should I say scandalous -- 1.1% expense ratio and you're making 1.7% net.

Big bounce off the lows? Well, BFD! Considering how much it lost compared to the indices since 2007, it had a whole lot more to make up. Junk always bounces higher in these bear market rallies and that 15% discount it had near the March lows -- poof, sayonara.

Compare this to an ETF like DVY that tracks the indices, has a real yield of 5.6% (6% minus expense of 0.4%) and only sticks you with vanishingly small amounts of capital gains or ordinary income. Want more income and don't mind missing a bit of the upside? DVY is optionable so instead of letting BFD rip you, you can make your own little buy-write fund. Overwrite 50% of your position with Sept. calls w/ a 37 strike and you will add 1.4% (5.6% annualized) to your yield.

Of course, for those who don't like this analysis, there's always denial!