Making the Case for Covered Call Strategies

During times of uncertainty, an investor can use a covered call to deliver downside protection while capturing upside gains. Here’s how it works.

A businessman with a briefcase stands in a boat on rough waters looking toward a lighthouse in the distance.
(Image credit: Getty Images)

The headlines surrounding today's markets are scary: stubborn inflation, rising interest rates, bank crises, a possible recession and other economic perils. However, the markets have proven to be resilient so far. While trying to time the market is never prudent, it makes sense to assume a defensive posture, given the current conditions. The risk of a market downturn is higher than the potential opportunity cost of missing a significant move to the upside.

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Antwone Harris, MBA, CFP®
Chief Planning Strategist, Platinum Bridge Wealth Strategies

Antwone Harris, MBA, CFP®, is a seasoned financial professional with over 20 years of experience helping clients transition from their main careers to the next phase of their lives. As a former VP-Senior Financial Consultant at Charles Schwab Inc., he managed over $890 million in client assets and ranked in the top 5% of more than 1,100 advisers nationwide. His financial expertise has been featured in major media outlets such as CBS, ABC, NBC, FOX, The Washington Post, Bloomberg, The Financial Times and Kiplinger. Harris is a CERTIFIED FINANCIAL PLANNER™ and a Retirement Income Certified Professional®, focusing his practice on creating comprehensive plans for individuals approaching or already in retirement. Recognizing the anxiety surrounding retirement preparation, Harris founded Platinum Bridge Wealth Strategies to provide specialized financial planning for those nearing or in retirement.