Is selling covered calls considered a high risk strategy to generate retirement income?

I am looking to increase my overall retirement savings. I have a company 401(k), but also own a Roth IRA that I would like to invest more aggressively. Would you consider selling covered calls too risky because it could jeopardize my funds?

Retirement Savings, Investing, IRAs
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Generally, selling a cover call is considered to be one of the option strategies with the least amount of risk since you already own the shares. Your main risk is that you are capping the unlimited upside potential to your stock and that your shares might be called away from you at the given strike price that you sold.

It's also important to note that many brokerage firms will only allow for covered call strategies in retirement accounts.

 

Best of Luck!

Pat

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