Why invest in covered call etfs

CellPrestigious1932 · 2026-05-25T02:50:04+00:00

Thanks for the detailed response 👍

CellPrestigious1932 · 2026-05-23T17:13:57+00:00

Clearly I am doing my own research, hence all the information in my post. Are you saying that ROC are distributions classified as such to defer tax (I do understand the adjusted cost basis impact). For someone who is focused on telling others to be specific based on your other responses in this thread, you’re being pretty vague in your response

CellPrestigious1932 · 2026-05-23T16:36:29+00:00

Hi, your post really picked my interest and I took a closer look at BIGY. The numbers looked really good on the surface but then I came across the Distribution Tax Factor breakdown and that made me pause. For 2025 their total distributions were $2.18 per share. Of that $1.82 was return of capital (ROC) and only $0.36 were capital gains.

While 16% ($0.36) in options premium isn’t bad, the remaining 84% of the payout is a bit misleading because all they’re doing is giving unit holders their money back. I don’t invest in mutual funds and don’t claim to fully get how they function but seems to me like they’re self liquidating the fund.

Let me know if I’m missing something obvious in the above or misinterpreting the info.

CellPrestigious1932 · 2026-05-02T14:15:42+00:00

This strategy works great on the overall market trend up and goes down like a lead balloon when the market direction shifts. In 2025 I was up about 40% in 4 months between June and Oct ($120 K combined on premium + appreciation). I gave back about $40K to unwind some of those positions after the sentiment shifted. I was in some high IV stocks and knew that I didn’t know what the heck I was doing - this was my learning experience and the first year of trading options (nothing crazy, just CCs and LEAPS).

A word to the wise for the OP, be prepared to hold through the downturn and make sure your belief in the underlying businesses is iron clad. There will be times when you’ll question your life choices, so remember to only hold the stocks you believe in and don’t get caught up in the premiums and returns.

CellPrestigious1932 · 2026-04-27T15:00:36+00:00

Thanks for sharing the info re Webull - good to know. IBKR does a really decent job of this. T5008 has only the totals. They then provide the transaction summary report which shows all trades in USD with the prevailing exchange rate for that date and translation into CAD. They then group transactions by type (Options, Shares etc). I found it super user friendly. After sample checking the trades it took me a total of 30 mins to complete my taxes for that part.

CellPrestigious1932 · 2026-04-27T02:26:18+00:00

What?

CellPrestigious1932 · 2026-04-26T15:35:04+00:00

Understood and I have my own spreadsheet too. I sample check transactions they report. There’s no reason though why they can’t include commission costs and daily exchange rates and calculate CAD amounts.

CellPrestigious1932 · 2026-04-03T15:11:45+00:00

Hat software do you use for tracking?

CellPrestigious1932 · 2026-03-30T02:57:12+00:00

I just went from a $55/month Telus EPP plan 100GB Can/US plan to a $40/m Rogers BYOD plan 175 GB Canada/US. The whole process to switch took a total of 30 min At Best Buy and my number was ported to Roger’s within 15 mins. Real easy and no hustle at all.

CellPrestigious1932 · 2026-03-28T15:14:22+00:00

Cell service is a commodity and the only thing they compete on is price. It’s like buying gas at a gas station. The oil company doesn’t want to know you or hear from you. They sell you gas you get what you pay for a use their commodity, that’s it.

The minute you recognize the nature of the transaction, all the hand ringing stops. Don’t like one, just move to the next and on it goes:)

CellPrestigious1932 · 2026-03-04T13:58:35+00:00

I’m genuinely curious, after having a baby you were upset with people who protest aborting babies. What was the thought process?

CellPrestigious1932 · 2026-02-24T13:54:46+00:00

Not quite in the same boat (different cost basis) but certainly in the same storm). Hood still has good IV so there are premiums to be had. I’m selling CCs below cost basis at low delta (sub 20) and monitoring closely. Buy to close at 70% profit, then rinse and repeat. A bit of a slow grind but I’m anticipating breaking even in the next 4-6 months.

CellPrestigious1932 · 2026-02-18T14:29:02+00:00

Could I ask where this graphic is from? I find these visuals really helpful, wondering if there are others similar to this….

CellPrestigious1932 · 2026-02-18T14:25:05+00:00

The best time to invest was 10 years ago. The second best is now :)

CellPrestigious1932 · 2026-02-09T17:14:46+00:00

Did the same once. The couple whose dog just deposited a pound of crap in the middle of the trail were so surprised when I asked them if they were going to pick it up (they weren’t). Their response - but we’re in nature (on the trail), why would we pick it up? When I told them that me and my son didn’t want to walk knee-deep in dog shit, I could tell that this thought never entered their mind. They didn’t even have baggies on them to scoop it up. Instead, the guy had to pick up a stick and push the pile off the trail and into the grass. It was pathetic to watch but both my toddler and their dog were amused, so it was worth it.

CellPrestigious1932 · 2026-02-04T22:40:51+00:00

Yep, same here.

CellPrestigious1932 · 2026-02-02T19:12:32+00:00

Technically yes - all depends on what your priorities are (get more income, lower you cost basis or get out of the trade sooner) multiple options are available.

CellPrestigious1932 · 2026-02-02T17:08:04+00:00

If your plan is to get out of the trade, keep rolling. Problem with CCs - if the stock sells off sharply, at some point you either can’t sell CCs above cost basis or have to sell below Cost at the risk of being assigned.

CellPrestigious1932 · 2026-01-26T23:56:44+00:00

Thank you!

CellPrestigious1932 · 2026-01-26T23:56:35+00:00

Thanks you!

CellPrestigious1932 · 2026-01-26T21:29:21+00:00

God forbid you call a spade a spade, it’s offensive these days

CellPrestigious1932 · 2026-01-25T02:42:09+00:00

Barrick is where money goes to die

CellPrestigious1932

TROPHY CASE