Main office: (616) 632-8000

Toll-free: (888) 607-4819

Are “Covered Call” Option Strategies Really “Conservative”?

Are “Covered Call” Option Strategies Really “Conservative”?

In the complex world of derivative investments, the attention of conservative investors is often drawn to a seemingly simple instrument: The covered call option.[1] Brokers and advisors often tout covered call strategies to their clients as “conservative” investment strategies, but this can be misleading.[2] A more accurate description might be…