I agree that covered call option writing should not be described as producing income. Should one use the term income for the higher yields of corporate bonds, especially junk bonds, compared to Treasury bonds? The higher yields are produced by effectively selling puts or taking liquidity risk.
I agree that covered call option writing should not be described as producing income. Should one use the term income for the higher yields of corporate bonds, especially junk bonds, compared to Treasury bonds? The higher yields are produced by effectively selling puts or taking liquidity risk.