So I understand that the main downside of a covered call strategy is if the price runs up while you've been put your calls, missing upside. I can also imagine that the tax events triggered by buying and selling all the time may outweigh the additional income of selling calls. But if you own index funds, which aren't going to run up 5% or anything crazy in a day, and you are careful to buy back in immediately when you are put your calls, and you own these funds in a Roth which as far as I understand has no tax events, it seems that you can enjoy extra gains with minimal downside. Am I missing anything?
Submitted February 20, 2017 at 03:11PM by charmizard http://ift.tt/2lzNQjT
