The Growing Popularity of Covered Call Option Strategy

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The Growing Popularity of Covered Call Option Strategy

Join us for a fascinating episode as we welcome Barry Martin, a seasoned expert in covered call option strategy. Barry shares his insights into the growing popularity of covered call writings, discussing how they have surged from $7 billion to $75 billion in just a few years. Whether you're an experienced trader or new to options, this episode offers valuable perspectives on managing risk and generating income through covered calls. Today we discuss...

  • How the popularity of covered option writing has surged in recent years.
  • Barry manages $1.3 billion in option overlay strategies at Shelton Capital Management.
  • The decline in commission costs and increased options education have contributed to the growing interest in covered call writing.
  • Covered call writing is most beneficial in choppy, sideways markets, slightly up or down, where income generation is a key goal.
  • Barry emphasizes that selling options in low-volatility, low-interest-rate environments is less beneficial.
  • Barry advocates for using defensive, market-leading stocks with significant free cash flow for covered call writing.
  • Covered call writing is misunderstood as risky by some CPAs and advisors due to a lack of education and familiarity with the strategy.
  • Educating oneself, starting with basic strategies like covered calls, and minimizing risk are essential for successful options trading.


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Today's Guest:  Barry Martin

Barry Martin, CFA, is a Portfolio Manager for Shelton Capital Management’s Option Overlay Strategies. Mr. Martin specializes in option strategies and has been managing options for over 20 years. He received a B.S. from the University of Arizona and has earned the right to use the Chartered Financial Analyst (CFA®) designation.

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