Money Tree Investing

The Growing Popularity of Covered Call Option Strategy


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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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For more information, visit the show notes at https://moneytreepodcast.com/the-growing-popularity-of-covered-call-option-strategy

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