Covered Call ETFs: the Real Tradeoff
Covered call ETFs sell index calls and pay the premium out monthly. See where that distribution really comes from, and how total return behaves by year.
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Covered call ETFs sell index calls and pay the premium out monthly. See where that distribution really comes from, and how total return behaves by year.
A covered call and a cash-secured put at one strike share a payoff shape. See both priced on the same SPY chain, and where the two really differ.
The wheel strategy sells a cash-secured put, takes assignment, then sells covered calls. We trace both legs through one real pair of SPY option contracts.