Equity investors must currently contend with soaring valuations, concentration risk, volatility, and more within stocks. As more investors look to alternatives for opportunity, covered call ETFs prove increasingly popular, and for good reason.
Option strategies, once considered too complex and niche for most investors, now enjoy mainstream adoption. Covered call strategies, wherein a fund writes and sells calls on underlying equity holdings, thereby earning income (premium), have grown in popularity over the last decade.
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