Setting Up a $50k Covered Call Writing ETF Portfolio – April 13, 2026
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.
Author: Alan Ellman