53 Page Report
Covered Calls Performance Research Report
For many stock investors, Covered Calls are the "bridge" first crossed on the path to the world of options trading. It is executed simply by short selling (writing) a call option while owning the underlying stock. Covered Call writing is a critical strategy for anyone looking to leverage the power and effectiveness of options to both reduce risk and increase returns.
However, as much as you might think you know about covered calls and their performance, very little research has been performed on the strategy. No currently published literature has approached the study of this strategy holistically, until now.
We set out on a new mission and decided it was time to analyze the popular covered call strategy from all angles. We spent many months of research examining approximately 20 years' worth of data (beginning of 1999 to mid-2019) across 109 popular underlying ticker symbols and more than 5,550,676 covered call trades. We found clear and convincing evidence that covered calls work best only within the context of a particular set of market environments.