Setting Up a $50k Covered Call Writing ETF Portfolio

Covered call writing portfolios are structured based on cash available, the # of securities used to maximize diversification, as well as appropriate cash allocation and initial time-value return range goals. In this article, 5 exchange traded funds (ETFs) were selected to diversify a $50k portfolio for covered calls.

ETF selection (from the BCI ETF Report published on 12/1/2025): Diversification

• SLV (Silver)
• GDX (Gold)
• ARKG (Tech/ Health care)
• COPX (Copper)
• TAN (Solar)

 

Portfolio Setup (from the BCI Portfolio Setup Spreadsheet): Final Diversification & Cash Allocation

• The initial setup left a large cash balance, so an additional 100 shares was added to the TAN position for a final total of 300 shares
• There is a cash reserve of $920.00 for potential exit strategy opportunities (+ option premium income)

 

Initial per- trade 12-day calculations using the BCI Trade Management Calculator (TMC):  Initial time-value returns

• Red oval: These are 12-day trades
• Yellow cells: Breakeven price points
• Brown cells: Initial 12-day returns + annualized returns
• Purple cells: Additional upside potential from current market value up to the out-of-the-money strikes

 

Initial total portfolio calculations using the BCI Trade Management Calculator (TMC):  Initial time-value returns

• 10 contracts sold
• $924.00 cash generated (1.88%)
• Upside potential: $1820.00
• Max 12-day return (w/o exit strategies): $2744.00 (5.59%)
• Flat 12-day return: 1.88%, 57.18% annualized

 

Discussion

When crafting our option portfolios, stock selection, option selection, diversification, cash allocation and initial time-value returns must all be considered. By doing so, our portfolios will be protected and our opportunities to generate the highest possible returns will increase exponentially.

 

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Covered Call Writing Alternative Strategies: Softcover

Covered call writing is a cash-generating strategy that lowers our cost basis thereby improving our opportunities for successful investments. One of the many benefits of incorporating this strategy into our investment portfolios is that the system can be crafted to meet our trading style, market assessment, portfolio net worth and personal risk tolerance. This book details three such covered call writing-like strategies that will highlight:

• Portfolio Overwriting- using stocks in buy-and-hold portfolios
  The Collar Strategy- using protective puts
  The Poor Man’s Covered Call- using LEAPS options

 

Click here to learn more.

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Free training resources

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Your generous testimonials

Over the years, the BCI community has been incredibly gracious by sending our BCI team email testimonials sharing stories as to what our educational content has meant to their families. Moving forward, we have decided to publish several of these testimonials in our blog articles. We will never use a last name unless given permission:

1. Sarasota Investment Group

Portfolio Overwriting: A Form of Covered Call Writing

Wednesday April 22, 2026

Details to follow.

2. BCI Educational Webinar #10: The Put-Call-Put (PCP) or “Wheel Strategy”

Thursday May 14, 2026, at 8 PM ET

Using both covered call writing & cash-secured puts in a multi-tiered option selling strategy. A 68-day real-life example taken from one of Alan’s portfolios will be analyzed.

BONUS: Barry will share a real-life credit spread trade using our BCI Conservative Credit Spread Management System.

Discount coupons and a live Q&A session will follow the presentation.

Click here for more information and to register (scroll down).

3. American Association of Individual Investors: NYC Chapter

June 10, 2026, at 6 PM – 8 PM ET

More information to come.

4. MoneyShow Masters Symposium Las Vegas

July 20 – 22, 2026

Caesars Palace Hotel

Las Vegas

Details to follow.

5. Toronto Money Show

September 24 – 25, 2026

MaRS Center, Toronto Canada

6. Orlando Money Show

October 5 – 7, 2026

Hilton Orlando Lake Buena Vista

Details to follow.