Are Covered Calls A Good Strategy? Theory And Empirical Evidence
What are covered calls?
Are covered calls a good way to create “income”?
Can you limit risk by selling covered calls?
When interest rates and dividend yields are low, many investors and traders look for additional ways to generate "income". Many pundits promise both good returns and "income" if you issue call options on your positions - so-called covered calls.
In this article, we look at the theory of covered calls and why they limit the upside and only partially limit the downside.
We also look a the performance of a couple of covered calls ETFs.
Please click on this link to read more:
Are covered calls a good strategy?
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