A closer look at covered calls

Harvest Portfolios Group Inc. uses a call option strategy to enhance the income generated in 8 of its ETFs.

This method of using a stock’s option to generate income has become more universal in today’s period of low interest rates. Yet, it is still widely misunderstood. While many observers see the strategy as adding risk, it reduces risk in many cases.

When strong, global businesses with growing dividend streams are combined with the call option strategy it is a powerful energizer. Harvest writes calls on up to 33% of each position, generating an attractive tax efficient income while participating in the growth in the companies where it is invested.

Harvest Portfolio CEO Michael Kovacs has written an article explaining how the strategy works, why it reduces risk and how Harvest uses it to generate more money for investors who hold its funds. Click here to read the article.

For more about Harvest Portfolio Group click here.