Build Consistent Wealth with Options: A New Mindset for Covered Call and Cash-Secured Put Investors

Where investors struggle is with the tactical skills and the intrapersonal soft skills required to harness the market-beating outperformance that is possible by using this time-tested, and academic-tested, strategy. The market is not strong-form efficient in price discovery. In considering a trade, along with the annualized return, investors must consider the risk and likelihood of success. As a result of the lower margin and capped loss feature, traders would tend to trade more credit spreads, while investors tend more toward cash-secured puts.