Episode Summary

This episode dissects the two options strategies most commonly utilized by retail investors: covered calls and protective puts. We unpack the mechanics of covered calls—where you own the underlying stock and sell a call option against it to collect immediate premium cash in exchange for capping your maximum potential upside. We expose the reality behind the highly popular Canadian covered call funds, which are heavily marketed as providing "enhanced income" or high monthly distributions. In truth, these funds are systematically selling away your best long-term growth outcomes to buffer flat or falling periods, causing them to structurally lag during rising markets.

We contrast this with protective puts, which function as literal invest ...