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Sure, but the losers go down between 1-100%, while winners are virtually uncapped.
by WrongAssumption 3y ago
Sure, but the losers go down between 1-100%, while winners are virtually uncapped.
- eru 3y agoIt's a pretty common strategy to sell covered calls on your portfolio. That caps your upside from infinite to finite. But you collect a steady stream of option premiums. The result doesn't look all that different on average from just investing in the plain index fund. You just get a different risk distribution. (Similarly, you can invest in an index fund that tracks (junk) bonds. Upside is finite there as well.)