A covered call strategy is an ideal way to produce additional income in a yield challenged environment, said Jesse Clinton, Managing Director at Snowden Lane. Clinton added that this strategy generally does well during a flat to slightly down market, which is what many Wall Street firms including Goldman Sachs are calling for 2015. He said the PowerShares S&P 500 BuyWrite ETF (PBP) is a good example of this strategy even though he customizes his own version for clients according it their needs and risk tolerances. Finally, Clinton said a covered call strategy works for every type of client, not just wealthy ones.
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