Torsten Asmus
Choice is generally good for investors. The more options people have, the easier the time individuals will usually have finding what investments fit their financial objectives. Still, when certain types of capital allocation become more common, oftentimes there will be types of investments that take advantage of trends and offer choices that don’t make sense for many investors.
Covered call funds have increasingly become one of the more well-known investments for individuals seeking inflation-adjusted income. With prices still high and the market near record highs, finding companies that pay substantive and consistent dividends has become much more difficult. One covered call fund is the Yield Max Tesla Option Income Strategy ETF (NYSEARCA:TSLY). This investment uses synthetic long strategies to take a position in Tesla. The fund buys and sells call options in addition to shorting put options in order to generate…
