COVERED CALLS ARE NOT WHAT YOU THINK...


Everyone loves saying they are collecting income.
But nobody talks about what they gave up...
You kept the downside.
You capped the upside.
You collected a small premium.
Then the stock finally makes the big move and now your shares are capped.
That can quietly cost you a fortune...
Covered calls are not automatically bad.
But selling calls on a great company you want to own for years can be a terrible trade.
The whole reason you own great companies is for upside.
Do not sell away the reason you bought it.
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