Covered call ETFs have become one of the most popular income-focused ETF strategies, but many investors still wonder how a covered call actually works. In this video, we explain the basics of a covered call strategy, how covered call ETFs generate income, why covered call ETF distributions can sometimes be higher than traditional dividend ETFs, and the trade-offs investors should understand before investing. We’ll cover: • What a covered call is • How a covered call ETF works • How covered call ETFs generate income from option premiums • Why covered call ETF distributions can appear so high • The trade-off between income and upside potential • How covered call strategies perform in different market environments • Tax considerations for covered call ETF investors • How covered call ETFs compare with dividend ETFs and bond ETFs Whether you're researching covered call ETFs for income, retirement planning, or portfolio diversification, understanding how covered call strategies wor...