Why Now is a Good Time to Consider Covered Call ETFs

Every few years, covered call writing captures the attention of investors and some money managers. We’re in one of those periods now.

There is some correlation between investor enthusiasm and market uncertainty. This makes sense, as covered call writing is, at its core, a hedging strategy that lowers volatility and downside risk.

Early in my career, in the early 1980s, I was tasked with managing a covered call writing program for a relatively small and forgotten trust and mortgage company. The program was remarkably successful given the volatility and option premiums that existed at the time. The question today is if this strategy is a good idea in our current world.

Click here to read the full article on The Globe and Mail

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