Living off Dividends

Asher Rogovy, Chief Investment Officer of Magnifina, says, “Covered call funds are a very interesting financial innovation.”

Full quote provided:

“Covered call funds are a very interesting financial innovation. Just like covered calls, however, they bear limited upside potential with unlimited downside risk. This dynamic is usually disclosed in a fund’s prospectus. They make the most sense as an investment during a sideways market. The underlying assets maintain their value, and the option premium sold provides steady income.”

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