Did I ever indicate that I believe, support or endorse that, in any of my posts about CC ETFs?
Your monkey brain shouldnt focus on covered call but on put write investing. From a theoretical point of view, covered call and put write gives the same return and comes with the same risk. Put wrote however has lower volatility. Remember that Volatility was not equal to risk… and your monkey brain loves low volatility and steady returns.
From a practical point of view, put wrote gives 0.1-0.3% higher return than covered call writing. Don‘t remember the reason but there are a few papers, I think it was somehow a matter of how the exposure was generally constructed.
Compared to 100% shares, put write was a bad idea… but when you are a balanced investor, it can further increase risk adjusted returns. The logic is quite simple - you keep writing puts that put your rebalancing to autopilot. Option 1, you get the risk premium, option 2 you rebalance as planned…
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google apparently disagrees with you*, at least if we compare PUTW vs JEPI
- Volatility: Both have significantly lower annualized volatility than the S&P 500 benchmark (approx. 9-11% for these strategies vs. 16%+ for S&P).
- Downside Protection: JEPI’s defensive stock selection may offer better protection during sharp crashes compared to pure put-writing funds.
- Income Type: JEPI’s distributions are often treated as ordinary income
Note that the source seems to be.. Wisdomtree 
2025 Annualized Volatility
- JEPI (JPMorgan Equity Premium Income ETF): 13.62%.
- WTPI (aka PUTW) (WisdomTree Equity Premium Income ETF): 14.84%
*note: Disagrees if I take a put write ETF, you meant writing by hand though..
These are active products with a specific strategy.
I think @TeaGhost compared manual strategy of writing cash-secured puts and writing covered calls in general.
Writing puts on something you want to buy as an alternative to a (limit) buy order might feed monkey brain. However you’re missing upside if you’re not long and it raises.
PUTW and JEPI are fairly „synthetic / engineered“ strategies that mainly aim to maximize dividend income (this is particularel true for JEPI).
If you want to get a genuine feel for possible returns, I would recommend to have a look at the UBS Defensive Covered Call / UBS Defensive Put Write ETF.
i would not write put options myself (its too much hassle and risk if You ask me). My pitch for Balanced Investors (aka 25-75 Shares: take the UBS Defensive Put Write and apply a smart rebalancing that mimics a Portfolio where you didn’t hold the PutWrite ETF but actually kept rolling PUT Buy Orders to (partially) rebalance if certain rebalancing thresholds were met.
Thats why you only do it when shares are at your target share ratio… and to ensure you either get to rebalance (as shares drown) and if not you just get the put write premia ehilst you hold your share quota.
Sorry if I sound dumb.
Then if you get exercised, it means you’re buying at option strike price, with a cost of strike price - premium. Which is, in the best case, the stock ask price, more probably it’s more expensive.
What if I just rebalance with actual ask price of the drown stock?
That is why i write a basket of puts on different stocks - all of which i would not mind owning at a discount
- 4/5 expire worthless → premium is mine
- 1/5 i take delivery → premium is still mine
For me, this approach doesnt just enhance tax efficeient returns, it also reduces risk as i fall less ‘in love’ with one stock but rather take a more unemotional approach woth a basket of selected stocks
i should launch a Mustachian forum t shirt with “i love put writing” on the front and “i love covEred call writing” on the back
I have made a LOT more money from this for instance with
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Hoi monkeys, does anyone here have an opinion on GPIX?
I have a small part in QQQI and IAUI. The tax treatment on ICTAX was marginally better for these 2.
It is not my long term position but like a placeholder for 3-4 years when I dont need this cash.
I would be interested to add BlackRock Systematic Swiss Equity High Income Fund, but it is not available on IBKR as it is fund and not ETF.
Yeah that’s how I look at it too.
Do you mean it’s a mutual fund?
Yes, the one from Blackrock is a MF.