It makes ZERO sense buying covered call ETFs
For those that choose to pay senseless management fees buying covered call ETFs, here’s how to write a covered call:
Step 1) Own 100 shares of a stock, since options contracts trade in standard blocks of 100.
Step 2) Open the options chain at your brokerage and look at the calls. Select an expiration date 30 to 45 days out.
Step 3) Pick a strike price above what you paid for the stock to protect your upside.
Step 4) Select "Sell to Open" via a limit order to pocket the premium cash directly.
Step 5) Let time decay do the work, then repeat the process once the contract expires worthless.
You’re welcome 😉
