Two Covered Call ETFs Built To Weather The Sell-Off

Roberts Berzins, CFA 16.14K Followers Follow Summary We have entered a market regime highly favorable for covered call strategies, driven by elevated volatility and reduced upside potential. Investors seeking yield should be mindful of opportunity costs and balance their covered call exposure to avoid underperformance in both price and income. Less aggressive covered call instruments, focusing on yield stability or growth, can offer premium benefits and mitigate opportunity costs. In this article, I elaborate on two covered call ETFs that prioritize stable income through selective option overwriting rather than maximizing yield that can potentially cost dearly to investors. PM Images/DigitalVision via Getty Images I firmly believe that we have entered a market regime that is favorable for covered call strategies. The outlook for two important elements that are very relevant for successful covered call investment results is definitely This article was written by Roberts Berzins, CFA 16.14K Followers Follow Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.