Covered-call strategies can be an income investors’ best friend. Whether the broader stock market goes up, down or merely grinds sideways, selling covered calls pays.
Fortunately, we can buy covered-call funds that do the heavy lifting (“call writing”) for us. These funds yield 7%, 12% and yes even 89%. We simply buy them and collect the dividends.
But are all covered-call funds good buys? Of course not. We’ll sort through a popular four-pack in a moment. First, let’s discuss what covered calls are and how they generate income.
Degenerate traders love buying call options to make big bets on stocks.… Read more
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