RT Journal Article SR Electronic T1 Income Enhancement with Options JF The Journal of Derivatives FD Institutional Investor Journals SP 153 OP 167 DO 10.3905/jod.2021.1.143 VO 29 IS 4 A1 Megan Miller A1 Brian Jacobsen A1 Martijn de Vree YR 2022 UL https://pm-research.com/content/29/4/153.abstract AB Investors have always tried to use various trading strategies to juice their returns. Writing options has often been thought of as a low-risk way to get some additional income (premiums) while not disturbing the underlying asset allocation. Sometimes, however, investors are caught off guard when their option strategy does more harm than good. In this educational piece we describe one of the most common option writing strategies–covered call writing–and the practicalities of how to manage these strategies so they hopefully don’t backfire. The key is to recognize that the returns from covered call strategies are related to the volatility risk premium (also known as the variance risk premium) as well as the equity risk premium.