Overcoming Market Crash FEAR – "This Time Is Different"
What really happens to covered-call income ETFs when the market crashes? Erica and Adriano tackle the question they get asked most: how does this strategy hold up through a crash, a long bear market, or distribution cuts?
They explain why a 25% leveraged, roughly 33% covered fund tends to track its underlying stocks over time. They also cover why option premiums get richer when markets get volatile, and why they see a prolonged bear market as "a prolonged sale." Along the way they share what they did through 2008, COVID and 2022, how they think about distribution cuts, and why earning more income than you spend is the key to never being forced to sell.
Uncensored, honest and a little blunt, it's the conversation to have before the next downturn, not during it.
For educational purposes only. Not financial advice.