Covered call ETFs have exploded in popularity. The strategy of writing covered calls is not optimal for income generation. Writing puts or using 0DTE call strategies should produce better results.
Like a great two-person beach volleyball team, the covered call segment of the ETF space did the “set” and YieldMax ETFs did the “spike.” That’s another point for investors who like their ETF income ...
The Global X S&P 500 Covered Call ETF offers a very high yield (13.13%) but significantly underperforms the S&P 500 in total and price returns over the long term. The fund's covered call strategy ...