Covered Calls Are Not For Hedging With Roy Haya

Covered calls are in the single-stock management canon, but not because they meaningfully hedge risk.Roy Haya, Partner and Head of Derivative Solutions at Fort Point Capital Partners, tells us covered call writing means income today, truncated upside, and often just a small premium for downside cushion. For some clients covered call writing is simply a disciplined way to exit a stock.We talk about the straddle rules, structuring the call to reach Qualified Covered Call status so straddle loss deferral falls away, and why dividends might lose their preferential tax treatment. We close by considering how all of this applies to bitcoin.