The “income” obsession is what traps most options traders.
They obsess over monthly cash flow from covered calls and CSPs, but never ask about total return in 10 years. They happily give up 200–500% upside so they can collect a few extra bucks this month. Cash flow is not the goal... total return is the goal. If your “income strategy” destroys your long term total CAGR, it’s not a strategy, it’s more work for less money.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
The “income” obsession is what traps most options traders.
They obsess over monthly cash flow from covered calls and CSPs, but never ask about total return in 10 years.
They happily give up 200–500% upside so they can collect a few extra bucks this month.
Cash flow is not the goal... total return is the goal.
If your “income strategy” destroys your long term total CAGR, it’s not a strategy, it’s more work for less money.