The Rational Reminder Podcast | Covered Calls (Plus Robin Powell and Jonathan Hollow on How to Fund the Life You Want) | RR 251 @rationalreminder | Uploaded May 2023 | Updated October 2024, 12 hours ago.
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 How to Fund the Life You Want: What everyone needs to know about savings, pensions and investments. 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!
Timestamps:
0:00 Intro
5:17 Main Topic: Covered Calls
10:18 Income
13:20 Main Topic: Correction
14:45 "Lower Risk"
20:06 Which Model?
24:52 Fees and Costs
31:03 Episode 27: 60 Seconds
34:05 Book Review: How To Fund The Life You Want: What Everyone Needs To Know About Savings, Pension, and Investments
37:04 Special Guests Robin Powell and Jonathan Hollow
1:08:07 Aftershow
Participate in our Community Discussion about this Episode:
community.rationalreminder.ca/t/episode-251-covered-calls-plus-robin-powell-and-jonathan-hollow-on-how-to-fund-the-life-you-want-discussion-thread/23304
Book From Today’s Episode:
How to Fund the Life You Want: What everyone needs to know about savings, pensions and investments — evidenceinvestor.com/book
Links From Today’s Episode:
CE Credits learn.rationalreminder.ca
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Shop Merch — shop.rationalreminder.ca
Join the Community — community.rationalreminder.ca
Follow us on Twitter — twitter.com/RationalRemind
Follow us on Instagram — @rationalreminder
Benjamin on Twitter — twitter.com/benjaminwfelix
Cameron on Twitter — twitter.com/CameronPassmore
Jonathan Hollow on Twitter — twitter.com/jphollow
Robin Powell on Twitter — twitter.com/RobinJPowell
Robin Powell on LinkedIn — linkedin.com/in/robinpowell
Jonathan Hollow on LinkedIn — linkedin.com/in/jonathanhollow
The Evidence-Based Investor — evidenceinvestor.com
'Fact and Fantasy in the Use of Options' — tandfonline.com/doi/abs/10.2469/faj.v31.n4.36
'The Returns and Risks of Alternative Put-Option Portfolio Investment Strategies' — jstor.org/stable/2352854
'Option Investing from a Risk-Return Perspective' — pm-research.com/content/iijpormgmt/25/5/109
'Covered Call Strategies: One Fact and Eight Myths' — tandfonline.com/doi/abs/10.2469/faj.v70.n6.3
'The Sharpe Ratio' — pm-research.com/content/iijpormgmt/21/1/49
'Downside risk' — pm-research.com/content/iijpormgmt/17/4/27
'The Dutch Triangle' — pm-research.com/content/iijpormgmt/26/1/50
'The Impact of Downside Risk on Risk-Adjusted Performance of Mutual Funds in the Euronext Markets' — papers.ssrn.com/sol3/papers.cfm?abstract_id=277352
'Is Covered Call Investing Wise? Evaluating the Strategy using Risk-Adjusted Performance Measures' — worldscientific.com/doi/abs/10.1142/9789812565457_0011
'Behavioral Aspects of the Design and Marketing of Financial Products' — jstor.org/stable/3665864
'The “Superior Performance” of Covered Calls on the S&P 500: Rethinking an Anomaly' — pm-research.com/content/iijderiv/27/2/50
'Portfolio Performance Manipulation and Manipulation-proof Performance Measures' — academic.oup.com/rfs/article-abstract/20/5/1503/1592381?redirectedFrom=fulltext
'Complex Instruments Have Increased Risk and Reduced Performance at Mutual Funds' — papers.ssrn.com/sol3/papers.cfm?abstract_id=2938146
'Retail Trading in Options and the Rise of the Big Three Wholesalers' — papers.ssrn.com/sol3/papers.cfm?abstract_id=4065019
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 How to Fund the Life You Want: What everyone needs to know about savings, pensions and investments. 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!
Timestamps:
0:00 Intro
5:17 Main Topic: Covered Calls
10:18 Income
13:20 Main Topic: Correction
14:45 "Lower Risk"
20:06 Which Model?
24:52 Fees and Costs
31:03 Episode 27: 60 Seconds
34:05 Book Review: How To Fund The Life You Want: What Everyone Needs To Know About Savings, Pension, and Investments
37:04 Special Guests Robin Powell and Jonathan Hollow
1:08:07 Aftershow
Participate in our Community Discussion about this Episode:
community.rationalreminder.ca/t/episode-251-covered-calls-plus-robin-powell-and-jonathan-hollow-on-how-to-fund-the-life-you-want-discussion-thread/23304
Book From Today’s Episode:
How to Fund the Life You Want: What everyone needs to know about savings, pensions and investments — evidenceinvestor.com/book
Links From Today’s Episode:
CE Credits learn.rationalreminder.ca
Rational Reminder on iTunes — itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — rationalreminder.ca
Shop Merch — shop.rationalreminder.ca
Join the Community — community.rationalreminder.ca
Follow us on Twitter — twitter.com/RationalRemind
Follow us on Instagram — @rationalreminder
Benjamin on Twitter — twitter.com/benjaminwfelix
Cameron on Twitter — twitter.com/CameronPassmore
Jonathan Hollow on Twitter — twitter.com/jphollow
Robin Powell on Twitter — twitter.com/RobinJPowell
Robin Powell on LinkedIn — linkedin.com/in/robinpowell
Jonathan Hollow on LinkedIn — linkedin.com/in/jonathanhollow
The Evidence-Based Investor — evidenceinvestor.com
'Fact and Fantasy in the Use of Options' — tandfonline.com/doi/abs/10.2469/faj.v31.n4.36
'The Returns and Risks of Alternative Put-Option Portfolio Investment Strategies' — jstor.org/stable/2352854
'Option Investing from a Risk-Return Perspective' — pm-research.com/content/iijpormgmt/25/5/109
'Covered Call Strategies: One Fact and Eight Myths' — tandfonline.com/doi/abs/10.2469/faj.v70.n6.3
'The Sharpe Ratio' — pm-research.com/content/iijpormgmt/21/1/49
'Downside risk' — pm-research.com/content/iijpormgmt/17/4/27
'The Dutch Triangle' — pm-research.com/content/iijpormgmt/26/1/50
'The Impact of Downside Risk on Risk-Adjusted Performance of Mutual Funds in the Euronext Markets' — papers.ssrn.com/sol3/papers.cfm?abstract_id=277352
'Is Covered Call Investing Wise? Evaluating the Strategy using Risk-Adjusted Performance Measures' — worldscientific.com/doi/abs/10.1142/9789812565457_0011
'Behavioral Aspects of the Design and Marketing of Financial Products' — jstor.org/stable/3665864
'The “Superior Performance” of Covered Calls on the S&P 500: Rethinking an Anomaly' — pm-research.com/content/iijderiv/27/2/50
'Portfolio Performance Manipulation and Manipulation-proof Performance Measures' — academic.oup.com/rfs/article-abstract/20/5/1503/1592381?redirectedFrom=fulltext
'Complex Instruments Have Increased Risk and Reduced Performance at Mutual Funds' — papers.ssrn.com/sol3/papers.cfm?abstract_id=2938146
'Retail Trading in Options and the Rise of the Big Three Wholesalers' — papers.ssrn.com/sol3/papers.cfm?abstract_id=4065019
