Note2 Sept 20264 min1,510 reads
Covered calls are a choice about which returns to sell
The overwrite sleeve collected 0.9% of premium in August and gave back 0.4% of upside on the two days the names gapped. Net 0.5%, which is the month working as designed: income in exchange for the top of the distribution.
It is not a hedge. Holders who want protection should size the cash-like sleeve, not sell more calls.
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Trading involves risk. Past performance is not indicative of future results. Vault NAV can rise or fall.