Eaton Vance Tax-Managed Buy-Write Opportunities Fund

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

811-21735

Investment Company Act File Number

Eaton Vance Tax-Managed Buy-Write Opportunities Fund

(Exact Name of Registrant as Specified in Charter)

Two International Place, Boston, Massachusetts 02110

(Address of Principal Executive Offices)

Maureen A. Gemma

Two International Place, Boston, Massachusetts 02110

(Name and Address of Agent for Services)

(617) 482-8260

(Registrant’s Telephone Number, Including Area Code)

December 31

Date of Fiscal Year End

September 30, 2017

Date of Reporting Period

 

 

 

Item 1. Schedule of Investments

Eaton Vance

Tax-Managed Buy-Write Opportunities Fund

September 30, 2017

PORTFOLIO OF INVESTMENTS (Unaudited)

Common Stocks — 96.6%

 

                                                 
Security    Shares      Value  

Aerospace & Defense — 1.6%

      

Boeing Co. (The)

      13,686      $ 3,479,118  

Northrop Grumman Corp.

      25,030        7,201,631  

Rockwell Collins, Inc.

      32,746        4,280,230  

Textron, Inc.

      15,478        833,955  
     

 

 

  
      $ 15,794,934  
     

 

 

  

Airlines — 0.4%

      

Alaska Air Group, Inc.

      6,254      $ 476,992  

Southwest Airlines Co.

      52,956        2,964,477  

United Continental Holdings, Inc.(1)

      15,000        913,200  
     

 

 

  
      $ 4,354,669  
     

 

 

  

Auto Components — 0.0%(2)

      

Adient PLC

      5,826      $ 489,326  
     

 

 

  
      $ 489,326  
     

 

 

  

Automobiles — 0.2%

      

General Motors Co.

      40,000      $ 1,615,200  
     

 

 

  
      $ 1,615,200  
     

 

 

  

Banks — 3.5%

      

Bank of America Corp.

      130,000      $ 3,294,200  

Fifth Third Bancorp

      90,126        2,521,725  

Huntington Bancshares, Inc.

      179,679        2,508,319  

JPMorgan Chase & Co.

      84,867        8,105,647  

KeyCorp

      38,413        722,933  

M&T Bank Corp.

      4,453        717,111  

Regions Financial Corp.

      413,924        6,304,062  

SunTrust Banks, Inc.

      49,905        2,982,822  

Wells Fargo & Co.

      111,947        6,173,877  

Zions Bancorporation

      25,204        1,189,125  
     

 

 

  
      $ 34,519,821  
     

 

 

  

Beverages — 1.3%

      

Coca-Cola Co. (The)

      153,082      $ 6,890,221  

PepsiCo, Inc.

      56,435        6,288,552  
     

 

 

  
      $ 13,178,773  
     

 

 

  

Biotechnology — 6.1%

      

AbbVie, Inc.

      6,412      $ 569,770  

Amgen, Inc.

      59,770        11,144,117  

Biogen, Inc.(1)

      35,831        11,219,403  

Bioverativ, Inc.(1)

      17,915        1,022,409  

Celgene Corp.(1)

      127,433        18,582,280  

Gilead Sciences, Inc.

      210,061        17,019,142  
     

 

 

  
      $ 59,557,121  
     

 

 

  

 

1

 

 

                                                 
Security    Shares      Value  

Building Products — 0.1%

      

Allegion PLC

      10,516      $ 909,318  
     

 

 

  
      $ 909,318  
     

 

 

  

Capital Markets — 2.5%

      

CME Group, Inc.

      12,294      $ 1,668,050  

Goldman Sachs Group, Inc. (The)

      15,655        3,713,209  

Invesco, Ltd.

      25,937        908,833  

Moody’s Corp.

      35,252        4,907,431  

Morgan Stanley

      53,096        2,557,634  

S&P Global, Inc.

      36,507        5,706,409  

State Street Corp.

      33,478        3,198,488  

T. Rowe Price Group, Inc.

      15,664        1,419,942  
     

 

 

  
      $ 24,079,996  
     

 

 

  

Chemicals — 1.4%

      

AdvanSix, Inc.(1)

      2,576      $ 102,396  

Air Products and Chemicals, Inc.

      13,083        1,978,411  

DowDuPont, Inc.

      61,024        4,224,692  

PPG Industries, Inc.

      69,093        7,507,645  
     

 

 

  
      $ 13,813,144  
     

 

 

  

Commercial Services & Supplies — 0.0%(2)

      

Waste Management, Inc.

      6,187      $ 484,256  
     

 

 

  
      $ 484,256  
     

 

 

  

Communications Equipment — 1.8%

      

Brocade Communications Systems, Inc.

      198,573      $ 2,372,947  

Cisco Systems, Inc.

      425,260        14,301,494  

Harris Corp.

      6,224        819,576  
     

 

 

  
      $ 17,494,017  
     

 

 

  

Consumer Finance — 1.2%

      

American Express Co.

      50,565      $ 4,574,110  

Capital One Financial Corp.

      10,757        910,688  

Discover Financial Services

      92,596        5,970,590  
     

 

 

  
      $ 11,455,388  
     

 

 

  

Containers & Packaging — 0.2%

      

WestRock Co.

      27,349      $ 1,551,509  
     

 

 

  
      $ 1,551,509  
     

 

 

  

Distributors — 0.2%

      

Genuine Parts Co.

      16,898      $ 1,616,294  
     

 

 

  
      $ 1,616,294  
     

 

 

  

Diversified Financial Services — 0.4%

      

Berkshire Hathaway, Inc., Class B(1)

      19,434      $ 3,562,641  
     

 

 

  
      $ 3,562,641  
     

 

 

  

Diversified Telecommunication Services — 0.9%

      

AT&T, Inc.

      122,541      $ 4,799,931  

Verizon Communications, Inc.

      82,831        4,099,306  
     

 

 

  
      $ 8,899,237  
     

 

 

  

Electric Utilities — 0.6%

      

American Electric Power Co., Inc.

      14,972      $ 1,051,633  

Edison International

      62,309        4,808,386  
     

 

 

  
      $ 5,860,019  
     

 

 

  

 

2

 

 

                                                 
Security    Shares      Value  

Energy Equipment & Services — 0.4%

      

Halliburton Co.

      92,888      $ 4,275,635  
     

 

 

  
      $ 4,275,635  
     

 

 

  

Equity Real Estate Investment Trusts (REITs) — 1.0%

      

American Tower Corp.

      17,730      $ 2,423,336  

Apartment Investment & Management Co., Class A

      35,696        1,565,627  

Simon Property Group, Inc.

      38,580        6,211,766  
     

 

 

  
      $ 10,200,729  
     

 

 

  

Food & Staples Retailing — 1.4%

      

Costco Wholesale Corp.

      26,000      $ 4,271,540  

CVS Health Corp.

      88,422        7,190,477  

Kroger Co. (The)

      75,174        1,507,991  

Wal-Mart Stores, Inc.

      10,000        781,400  

Walgreens Boots Alliance, Inc.

      5,828        450,038  
     

 

 

  
      $ 14,201,446  
     

 

 

  

Food Products — 1.7%

      

Conagra Brands, Inc.

      36,179      $ 1,220,680  

Hershey Co. (The)

      11,826        1,291,045  

Hormel Foods Corp.

      21,160        680,082  

Kraft Heinz Co. (The)

      49,708        3,854,855  

Lamb Weston Holdings, Inc.

      16,086        754,273  

Mondelez International, Inc., Class A

      213,793        8,692,823  
     

 

 

  
      $ 16,493,758  
     

 

 

  

Health Care Equipment & Supplies — 2.3%

      

Abbott Laboratories

      13,617      $ 726,603  

Baxter International, Inc.

      36,672        2,301,168  

Edwards Lifesciences Corp.(1)

      22,126        2,418,593  

Intuitive Surgical, Inc.(1)

      11,805        12,346,614  

Stryker Corp.

      33,820        4,803,116  
     

 

 

  
      $ 22,596,094  
     

 

 

  

Health Care Providers & Services — 1.8%

 

Cigna Corp.

      36,534      $ 6,829,666  

DaVita, Inc.(1)

      11,550        685,954  

McKesson Corp.

      7,813        1,200,155  

UnitedHealth Group, Inc.

      46,743        9,154,617  
     

 

 

  
   $ 17,870,392  
     

 

 

  

Hotels, Restaurants & Leisure — 2.4%

 

ILG, Inc.

      9,987      $ 266,953  

Marriott International, Inc., Class A

      98,709        10,883,654  

McDonald’s Corp.

      35,561        5,571,697  

Yum China Holdings, Inc.(1)

      37,349        1,492,840  

Yum! Brands, Inc.

      72,349        5,325,610  
     

 

 

  
   $ 23,540,754  
     

 

 

  

Household Durables — 0.2%

 

Whirlpool Corp.

      8,566      $ 1,579,913  
     

 

 

  
   $ 1,579,913  
     

 

 

  

Household Products — 0.9%

 

Clorox Co. (The)

      39,829      $ 5,253,843  

Colgate-Palmolive Co.

      26,967        1,964,546  

Procter & Gamble Co. (The)

      16,369        1,489,252  
     

 

 

  
   $ 8,707,641  
     

 

 

  

 

3

 

 

                                                 
Security    Shares      Value  

Industrial Conglomerates — 1.6%

 

3M Co.

      11,474      $ 2,408,393  

General Electric Co.

      159,649        3,860,313  

Honeywell International, Inc.

      64,422        9,131,174  
     

 

 

  
   $ 15,399,880  
     

 

 

  

Insurance — 1.6%

 

Aon PLC

      4,957      $ 724,218  

Chubb, Ltd.

      35,393        5,045,272  

Marsh & McLennan Cos., Inc.

      15,767        1,321,432  

Travelers Cos., Inc. (The)

      40,848        5,004,697  

Unum Group

      70,698        3,614,789  
     

 

 

  
   $ 15,710,408  
     

 

 

  

Internet & Direct Marketing Retail — 5.3%

 

Amazon.com, Inc.(1)

      45,881      $ 44,107,699  

Liberty Ventures, Series A(1)

      11,445        658,660  

Netflix, Inc.(1)

      39,110        7,092,598  
     

 

 

  
   $ 51,858,957  
     

 

 

  

Internet Software & Services — 10.4%

 

Alphabet, Inc., Class A(1)

      32,784      $ 31,922,436  

Alphabet, Inc., Class C(1)

      26,500        25,416,415  

eBay, Inc.(1)

      99,341        3,820,655  

Facebook, Inc., Class A(1)

      211,946        36,215,213  

VeriSign, Inc.(1)

      39,197        4,170,169  
     

 

 

  
   $ 101,544,888  
     

 

 

  

IT Services — 3.1%

 

Alliance Data Systems Corp.

      7,945      $ 1,760,215  

Cognizant Technology Solutions Corp., Class A

      143,537        10,412,174  

DXC Technology Co.

      859        73,771  

Fidelity National Information Services, Inc.

      62,742        5,859,475  

International Business Machines Corp.

      1,955        283,631  

Mastercard, Inc., Class A

      38,080        5,376,896  

Visa, Inc., Class A

      63,696        6,703,367  
     

 

 

  
   $ 30,469,529  
     

 

 

  

Life Sciences Tools & Services — 0.2%

 

PerkinElmer, Inc.

      23,065      $ 1,590,793  
     

 

 

  
   $ 1,590,793  
     

 

 

  

Machinery — 1.6%

 

Caterpillar, Inc.

      5,735      $ 715,212  

Dover Corp.

      29,870        2,729,819  

Ingersoll-Rand PLC

      23,525        2,097,724  

Parker-Hannifin Corp.

      14,287        2,500,511  

Stanley Black & Decker, Inc.

      50,670        7,649,650  
     

 

 

  
   $ 15,692,916  
     

 

 

  

Media — 4.1%

 

CBS Corp., Class B

      88,076      $ 5,108,408  

Comcast Corp., Class A

      603,498        23,222,603  

Walt Disney Co. (The)

      119,119        11,741,560  
     

 

 

  
   $ 40,072,571  
     

 

 

  

 

4

 

 

                                                 
Security    Shares      Value  

Metals & Mining — 0.2%

 

Newmont Mining Corp.

      25,563      $ 958,868  

Nucor Corp.

      22,035        1,234,841  
     

 

 

  
   $ 2,193,709  
     

 

 

  

Multi-Utilities — 0.8%

 

CMS Energy Corp.

      177,055      $ 8,201,188  
     

 

 

  
   $ 8,201,188  
     

 

 

  

Multiline Retail — 0.3%

 

Macy’s, Inc.

      81,687      $ 1,782,410  

Nordstrom, Inc.

      11,790        555,899  

Target Corp.

      8,193        483,469  
     

 

 

  
   $ 2,821,778  
     

 

 

  

Oil, Gas & Consumable Fuels — 2.6%

 

Chevron Corp.

      66,225      $ 7,781,438  

EOG Resources, Inc.

      32,900        3,182,746  

Exxon Mobil Corp.

      54,909        4,501,440  

Murphy Oil Corp.

      91,974        2,442,829  

Phillips 66

      57,101        5,231,023  

Pioneer Natural Resources Co.

      5,000        737,700  

Williams Cos., Inc. (The)

      37,548        1,126,815  
     

 

 

  
      $ 25,003,991  
     

 

 

  

Personal Products — 0.8%

      

Estee Lauder Cos., Inc. (The), Class A

      72,774      $ 7,847,948  
     

 

 

  
      $ 7,847,948  
     

 

 

  

Pharmaceuticals — 3.3%

      

Bristol-Myers Squibb Co.

      106,404      $ 6,782,191  

Eli Lilly & Co.

      12,046        1,030,415  

Johnson & Johnson

      43,189        5,615,002  

Merck & Co., Inc.

      158,250        10,132,747  

Pfizer, Inc.

      242,074        8,642,042  
     

 

 

  
      $ 32,202,397  
     

 

 

  

Professional Services — 0.5%

      

Equifax, Inc.

      15,738      $ 1,668,071  

Nielsen Holdings PLC

      8,843        366,542  

Robert Half International, Inc.

      51,102        2,572,475  
     

 

 

  
      $ 4,607,088  
     

 

 

  

Real Estate Management & Development — 0.1%

      

CBRE Group, Inc., Class A(1)

      24,669      $ 934,462  
     

 

 

  
      $ 934,462  
     

 

 

  

Road & Rail — 0.8%

      

CSX Corp.

      20,000      $ 1,085,200  

Kansas City Southern

      4,645        504,819  

Norfolk Southern Corp.

      9,503        1,256,677  

Ryder System, Inc.

      12,392        1,047,743  

Union Pacific Corp.

      37,756        4,378,563  
     

 

 

  
      $ 8,273,002  
     

 

 

  

Semiconductors & Semiconductor Equipment — 5.8%

      

Analog Devices, Inc.

      56,522      $ 4,870,501  

ASML Holding NV - NY Shares

      16,394        2,806,653  

Cypress Semiconductor Corp.

      38,941        584,894  

Intel Corp.

      285,159        10,858,855  

 

5

 

 

                                                 
Security    Shares      Value  

Microchip Technology, Inc.

      30,000      $ 2,693,400  

NXP Semiconductors NV(1)

      50,530        5,714,438  

ON Semiconductor Corp.(1)

      99,333        1,834,680  

Qorvo, Inc.(1)

      11,712        827,804  

QUALCOMM, Inc.

      183,978        9,537,419  

Texas Instruments, Inc.

      185,074        16,590,033  

Versum Materials, Inc.

      6,541        253,922  

Xperi Corp.

      28,424        719,127  
     

 

 

  
      $ 57,291,726  
     

 

 

  

Software — 7.3%

      

Micro Focus International PLC ADR(1)

      1,373      $ 43,799  

Microsoft Corp.

      748,152        55,729,842  

Oracle Corp.

      256,551        12,404,241  

Red Hat, Inc.(1)

      28,914        3,205,406  
     

 

 

  
      $ 71,383,288  
     

 

 

  

Specialty Retail — 1.7%

      

Advance Auto Parts, Inc.

      26,636      $ 2,642,291  

Best Buy Co., Inc.

      28,506        1,623,702  

Home Depot, Inc. (The)

      58,008        9,487,788  

Tiffany & Co.

      28,579        2,622,981  
     

 

 

  
      $ 16,376,762  
     

 

 

  

Technology Hardware, Storage & Peripherals — 7.5%

      

Apple, Inc.

      478,298      $ 73,715,288  

Hewlett Packard Enterprise Co.

      10,000        147,100  
     

 

 

  
      $ 73,862,388  
     

 

 

  

Textiles, Apparel & Luxury Goods — 0.8%

      

NIKE, Inc., Class B

      147,264      $ 7,635,638  
     

 

 

  
      $ 7,635,638  
     

 

 

  

Tobacco — 1.2%

      

Altria Group, Inc.

      27,194      $ 1,724,644  

Philip Morris International, Inc.

      87,820        9,748,898  
     

 

 

  
      $ 11,473,542  
     

 

 

  

Trading Companies & Distributors — 0.4%

      

Fastenal Co.

      79,244      $ 3,611,941  
     

 

 

  
      $ 3,611,941  
     

 

 

  

Wireless Telecommunication Services — 0.1%

      

T-Mobile US, Inc.(1)

      16,000      $ 986,560  
     

 

 

  
      $ 986,560  
     

 

 

  

Total Common Stocks — 96.6%
(identified cost $262,434,445)

       $ 945,749,375  
     

 

 

  

Total Call Options Written — (0.9)%
(premiums received $7,022,512)

       $ (8,927,050 ) 
     

 

 

  

Other Assets, Less Liabilities — 4.3%

       $ 42,342,165  
     

 

 

  

Net Assets — 100.0%

       $ 979,164,490  
     

 

 

  

 

6

 

 

The percentage shown for each investment category in the Portfolio of Investments is based on net assets.

 

(1) Non-income producing security.

 

(2) Amount is less than 0.05%.

Abbreviations:

ADR

   -   American Depositary Receipt
        
 
                                                                                                                            

Call Options Written — (0.9)%

 

Exchange-Traded Options — (0.9)%

 

Description    Number of
Contracts		      Notional
Amount		      Exercise
Price		      Expiration
Date		      Value  

NASDAQ 100 Index

      155      $ 92,679,119      $ 6,000        10/6/17      $ (358,825 ) 

NASDAQ 100 Index

      155        92,679,119        5,990        10/13/17        (708,350 ) 

NASDAQ 100 Index

      155        92,679,119        6,000        10/20/17        (843,975 ) 

NASDAQ 100 Index

      160        95,668,768        6,025        10/27/17        (907,200 ) 

S&P 500 Index

      185        46,608,160        2,480        10/2/17        (724,275 ) 

S&P 500 Index

      185        46,608,160        2,480        10/4/17        (729,825 ) 

S&P 500 Index

      185        46,608,160        2,485        10/6/17        (647,500 ) 

S&P 500 Index

      185        46,608,160        2,495        10/9/17        (491,175 ) 

S&P 500 Index

      185        46,608,160        2,505        10/11/17        (364,450 ) 

S&P 500 Index

      185        46,608,160        2,490        10/13/17        (624,375 ) 

S&P 500 Index

      185        46,608,160        2,510        10/16/17        (340,400 ) 

S&P 500 Index

      185        46,608,160        2,510        10/18/17        (365,375 ) 

S&P 500 Index

      185        46,608,160        2,505        10/20/17        (459,725 ) 

S&P 500 Index

      185        46,608,160        2,505        10/23/17        (475,450 ) 

S&P 500 Index

      185        46,608,160        2,510        10/25/17        (430,125 ) 

S&P 500 Index

      185        46,608,160        2,510        10/27/17        (456,025 ) 
              

 

 

  

Total

 

    $ (8,927,050 ) 
              

 

 

  

All of the assets of the Fund are subject to segregation to satisfy the requirements of the escrow agent. At September 30, 2017, the Fund had sufficient cash and/or securities to cover commitments under open derivative contracts.

The Fund is subject to equity price risk in the normal course of pursuing its investment objectives. The Fund writes index call options above the current value of the index to generate premium income. In writing index call options, the Fund in effect, sells potential appreciation in the value of the applicable index above the exercise price in exchange for the option premium received. The Fund retains the risk of loss, minus the premium received, should the price of the underlying index decline.

At September 30, 2017, the aggregate fair value of open derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in a liability position and whose primary underlying risk exposure is equity price risk was $8,927,050.

Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

 

•   Level 1 — quoted prices in active markets for identical investments

 

7

 

 

•   Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

 

•   Level 3 — significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)

In cases where the inputs used to measure fair value fall in different levels of the fair value hierarchy, the level disclosed is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

At September 30, 2017, the hierarchy of inputs used in valuing the Fund’s investments and open derivative instruments, which are carried at value, were as follows:

 

Asset Description    Level 1      Level 2      Level 3      Total  

Common Stocks

    $     945,749,375 *     $     —      $     —      $     945,749,375  

Total Investments

    $ 945,749,375      $ —      $ —      $ 945,749,375  
Liability Description                          

Call Options Written

    $ (8,927,050 )     $ —      $ —      $ (8,927,050 ) 

Total

    $ (8,927,050 )     $ —      $ —      $ (8,927,050 ) 

 

* The level classification by major category of investments is the same as the category presentation in the Portfolio of Investments.

The Fund held no investments or other financial instruments as of December 31, 2016 whose fair value was determined using Level 3 inputs. At September 30, 2017, there were no investments transferred between Level 1 and Level 2 during the fiscal year to date then ended.

For information on the Fund’s policy regarding the valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements included in its semiannual or annual report to shareholders.

 

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Item 2. Controls and Procedures

(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant on this Form N-Q has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant on this Form N-Q has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b) There have been no changes in the registrant’s internal controls over financial reporting during the fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.

Item 3. Exhibits

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act is attached hereto.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Eaton Vance Tax-Managed Buy-Write Opportunities Fund

 

By:   /s/ Edward J. Perkin
  Edward J. Perkin
  President
Date:   November 27, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:   /s/ Edward J. Perkin
  Edward J. Perkin
  President
Date:   November 27, 2017

 

By:   /s/ James F. Kirchner
  James F. Kirchner
  Treasurer
Date:   November 27, 2017