Mon. March 14, 2022. How our fearless, intrepid investor made out last week and her plans for today

Our fearless, intrepid investor lost $65,700 in  2021, writing (selling) covered calls on Novavax (NVAX) in her “fun” portfolio. She is in good company. Over the last three years, fund companies have launched over 120 exchange–traded funds (ETFs) that sell covered calls.

Every investment mistake, past or future, was or will be the result of departing from one or more of the six habits of the Monday Morning Program.  You can see why our fearless, intrepid investor, as well as professionally run funds selling covered calls, lost money last year.

Our fearless, intrepid investor has decided to put a hold on selling covered calls, for a while. Instead of reporting how she is doing, we will discuss what works and what doesn’t in selling covered calls in cash- secured naked puts in future Monday posts.

Here is one example.

The percentage return when selling covered calls and cash-secured puts increases with increased volatility of the underlying security. It is important for investors to know why.