2024-05-01 18:00:25 ET
Summary
- LQDW is a covered call strategy based on writing calls on the LQD while also going long.
- It's not too bad if you expect downside in the LQD, though it still faces downside risk.
- It's not great if you expect a decent amount of upside or more in the LQD.
- In general, we feel there are a lot of outstanding macro questions and it's a fat-tailed environment and wouldn't go with a covered call strategy in light of that.
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For further details see:
LQDW: Not The Best If Expecting Extreme Outcomes