Covered Calls (Plus Robin Powell and Jonathan Hollow on How to Fund the Life You Want) (EP.251)

<p>We all have different levels of risk tolerance. But how is that risk measured for complex investment strategies like covered calls? And how can you be sure it's an accurate reflection of reality? For the first portion of today’s episode, we provide a detailed breakdown of everything you need to know about covered calls and why there is no perfect model for assessing risk-adjusted returns. We examine how incorrect measures of risk can make covered calls seem more attractive, what investors need to know about covered calls, and the fees, costs, and taxes you should be considering with these types of strategies. Next, we are joined by lifelong friends and colleagues Jonathan Hollow and Robin Powell to discuss their new book <em>How to Fund the Life You Want: What everyone needs to know about savings, pensions and investments</em>. They describe how their shared passion for financial education motivated them to write their book, before explaining how readers can best use the accompanying workbook to identify and reach their financial goals. Robin and Jonathan then go on to share their advice on day-to-day money management, finding a trustworthy advisor, and why it’s never too early to teach your child about money. Tune in for a detailed breakdown of covered calls and how to make informed decisions about your investments and finances!</p> <p> </p> <p><strong>Key Points From This Episode:</strong></p> <ul> <li>An introduction to the concept of covered calls. <strong>(0:02:41)</strong></li> <li>The definition of covered calls, how risk can be measured incorrectly to make covered call strategies look more attractive, and why risk can never be destroyed. <strong>(0:04:22)</strong></li> <li>A breakdown of the assets involved in covered calls and why their yields can be misleading. <strong>(0:07:00)</strong></li> <li>Why there is no perfect model for assessing risk-adjusted returns and what can be learned from looking at investors through a behavioural lens. <strong>(0:16:19)</strong></li> <li>An overview of why fees, co