Covered Call ETF Performance Tracker

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Covered Call ETF Performance Tracker

Inspired by a conversation on:

The Rational Reminder Podcast

The Rational Reminder Podcast

Episode 375: Covered Calls: A Devil's Bargain

Host: Benjamin Felix, Cameron Passmore, and Dan Bortolotti

Timestamp: 01:00:00 - 01:00:05

Listen to Episode • View Podcast • All Ideas from The Rational Reminder Podcast

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Feather Flow

Direct Quote

"Covered calls are not good for long-term investors, particularly in cases where the underlying equities have gone up."

Market Gap

Investors lack clarity on the performance of covered call ETFs.

Many investors are drawn to covered call ETFs due to their appealing yield claims. However, these products often underperform compared to their underlying equities, particularly in rising markets. Investors typically do not realize that the high distribution yields come with capped upside potential and increased downside risks. Without a reliable performance tracking tool, investors may continue to invest in these products without fully understanding their implications. This can lead to poor long-term investment decisions and financial outcomes.

Summary

A performance tracking tool for covered call ETFs could help investors understand how these products are performing relative to their underlying assets. This tool could aggregate historical performance data, allowing users to compare the returns of covered call ETFs against their benchmark indices. It could provide insights into how often these funds underperform, especially during market recoveries, thus helping investors make informed decisions. The tool could also include analytics on volatility, risk exposure, and historical yield comparisons to educate users on the real mechanics behind these products.

Categorization

Business Model
SaaS
Target Founder
Generalist
Difficulty
Medium
Time to Revenue
3-6 months
Initial Investment
$1,000-$10,000

Potential MRR (18-24 months)

Conservative
$2,000 - $5,000 MRR
Moderate (Most Likely)
$10,000 - $20,000 MRR
Optimistic
$40,000 - $60,000 MRR

* Estimates assume solo founder/bootstrap scenario with competent execution

Scores

Clarity
8/10
Novelty
7/10
Feasibility
6/10
Market Potential
7/10
Evidence
8/10
Overall
7/10
Found on September 18, 2025 • Analyzed on September 18, 2025 11:39 AM

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