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Talk Your Book: I Need To Do Some Hedging Trades

Animal Spirits Podcast

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Covered Calls - What Are You Doing on Your Own?

The second you sell a covered call, you are reducing the risk in a portfolio or in that security. And so if you calibrate on that risk reduction, the only other way to reduce that risk is to sell shares. If they're sitting on embedded capital gains, we can kind of create an apples to apples comparison with just performing covered calls. The markets are moving in real time. So that Amazon share price is ticking up and down every single minute. We sit in the cornerstone intersection of all those needs.

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