TL;DR The default covered call position sizing rule is 3 to 5 percent of total portfolio per single stock and 15 to 25 percent per broad ETF. No single sector should exceed roughly 20 percent of the income sleeve. Typical retiree portfolios hold 10 to 18 covered call positions, which captures most of the diversification… Continue reading Covered Call Position Sizing: How Much Capital Per Trade?
Most People Learn Covered Calls on One Stock — Here’s Why That’s Just the Beginning I remember the first time a student came back to me after their initial covered call trade and said, “Mark, it worked. I collected the premium and the stock stayed below the strike. What do I do now?” My answer:… Continue reading How to Build a Covered Call Portfolio From Scratch (Step-by-Step)
My Risk Management Rules for Covered Calls (After 40+ Years in the Markets) Here’s something most people won’t tell you about covered calls: the entry is the easy part. You buy 100 shares, sell a call, collect premium. Done. The hard part — the part that separates consistent income earners from everyone else — is… Continue reading The Complete Guide to Covered Call Risk Management: Protect Your Portfolio While Collecting Income
