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Personal Finance Topics / Retirement Investing❤
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Author: AdrianC ⎊🐝  😊 😞
Number: of 767 
Subject: Covers calls: A Devil’s Bargain
Date: 09/21/2025 6:29 PM
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Income strategy ETFs using covered calls are BS, says Ben Felix:
https://youtu.be/ygVObRx9X68?si=AByrxS-eOkB6vGOZ
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Author: richinmd ⎊🐝🐝  😊 😞
Number: of 767 
Subject: Re: Covers calls: A Devil’s Bargain
Date: 09/21/2025 7:54 PM
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I don't think I've ever done it but I think it is one of those things that work until it doesn't and then you pay the price. I know it has been a rather heated topic here and on TMF multiple times.


Rich
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Author: rayvt ✧  😊 😞
Number: of 767 
Subject: Re: Covers calls: A Devil’s Bargain
Date: 09/22/2025 12:24 PM
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Income strategy ETFs using covered calls are BS, says Ben Felix:
https://youtu.be/ygVObRx9X68?si=AByrxS-eOkB6vGOZ

I saw that a few days ago. (The youtube algorithm is interesting, this one popped up even though I almost never watch investing videos.)

Covered calls are a hot point of contention. The newbie investing cohort sees then as free money.
See, for example, https://money.usnews.com/investing/articles/high-y...

The logic of asymmetry of returns says that they are a net loser, like Blackjack and Roulette.

Yet it is claimed that covered call ETFs are popular and profitable.

It's difficult to see it in the backtests, since most covered call ETFs are quite new. The best I could find goes back only 7 years: https://testfol.io/?s=2EcPOvxJtfm

There is ETW, which started 11/21/2005. 20 year backtest. https://testfol.io/?s=7IMcLb6hPvP

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