Covered calls have an ageless allure. You have a portfolio of stocks that you like for the long term, so you don't want to sell yet . . . either they still have unrealized potential or they're going through a temporary rough patch.
But especially when traditional income streams for investors aren't working, the ability to write a call option on those stocks and collect the premiums can be extremely valuable. As long as the option isn't exercised, the portfolio remains intact. Every month, new calls get written and new premiums roll in.
In a year when most stocks struggle to attract investors with signs of purely financial progress, many executives are turning to the factors of their corporate footprint that they can control, manage and even demonstrate real progress. References to "ESG" principles doubled last quarter and a full 35% of S&P 500 constituents talked about injustice and equality on their earnings calls.
Some market environments are easier to explain than others. But whether the cards on the table make sense or not, we all have to play the hand the market deals us.
That's a central message in the 2Q 2020 Review and Outlook from Global X. We all read too many of these. This one is refreshing in the way it acknowledges the facts all investment professionals need to keep in mind while we navigate the day-to-day noise.