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r/optionsr/options· u/wam1983· 21h ago 0

Can we please stop calling it "income?"

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Author argues covered options aren't risk-free income but taking on obligations for cash flow, akin to shorting stock.

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It's not income. It's positive cash flow with an offsetting negative obligation. It's not risk free. It's taking a risk to (hopefully) earn a profit. If I short a stock this collecting positive cash flow, it's literally the exact same trade. So why are we calling covered options "income," and can we please stop already?

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