Are covered call strategies efficient sources of cash flow?
I have been writing about investment products offering generous cash payouts for nearly 25 years.
It is my favourite topic because investors have long been infatuated with investments that churn out monthly cash – and creators of investment products love to feed into this often-unhealthy obsession.
I have written about covered call writing many times over the past decade. It involves buying shares of a company and selling options on those shares.
More recently, I analyzed the claim that covered call strategies excel in flat markets. In my view – and that of many others smarter than me – this claim is largely a myth. But there is another often-cited claim worthy of analysis. Covered call strategies are not designed for raw…
