Reported 3 days ago
Covered call ETFs are popular among investors for generating income through option premiums, but they lack the protective measures against market downturns. The author advocates for options collars as a superior strategy, which combines purchasing a stock or ETF with protective put options, providing both income potential and downside protection. While covered call ETFs may seem appealing, the risks often outweigh the rewards, especially during market declines.
Source: YAHOO