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Can You Lose With Covered Calls?

A balanced life… it’s what we all want right?

You want balance in your diet, in your relationships, and in your news.

That last one might be harder to find these days… 😉

But, today, I’m going to do my part.

I’ve been writing about covered calls for months… years actually.  I remember placing covered call trades in my own account several decades ago! (Yep, I’m old!)

So, you can say I have some experience trading options.

Covered calls are one of my favorite ways to generate extra cash flow.  And I’ve been writing about them extensively over the last few months.

Then I got an email from a reader… 

They asked a simple question… “Can you lose money with covered calls?”

The answer is Absolutely – YES.  

Every trade strategy comes with risk… even covered call trades.

Now, if you have a losing Covered Call trade, there are lots of things you can do to recover… but that’s not the point.

I want to make sure you’re IN THE KNOW about covered calls (both the Pros and the Cons).

I found this article outlining exactly how you can lose money trading covered calls.

It’s an important article to read… 

I simply want to make sure you are fairly balanced and understand the risks.