Shownotes Transcript
Join us for a fascinating episode as we welcome Barry Martin, a seasoned expert in covered call option strategy. Barry shares his insights into the growing popularity of covered call writings, discussing how they have surged from $7 billion to $75 billion in just a few years. Whether you're an experienced trader or new to options, this episode offers valuable perspectives on managing risk and generating income through covered calls.
Today we discuss...
- How the popularity of covered option writing has surged in recent years. Barry manages $1.3 billion in option overlay strategies at Sheldon Capital Management.
- The decline in commission costs and increased options education have contributed to the growing interest in covered call writing.
- Covered call writing is most beneficial in choppy, sideways markets, slightly up or down, where income generation is a key goal.
- Barry emphasizes that selling options in low-volatility, low-interest-rate environments is less beneficial.
- Barry advocates for using defensive, market-leading stocks with significant free cash flow for covered call writing.
- Covered call writing is misunderstood as risky by some CPAs and advisors due to a lack of education and familiarity with the strategy.
- Educating oneself, starting with basic strategies like covered calls, and minimizing risk are essential for successful options trading.
Today's Panelists:
- Kirk Chisholm | Innovative Wealth)
- Barbara Friedberg | Barbara Friedberg Personal Finance)
- Phil Weiss | Apprise Wealth Management)
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