Go ahead and roast me... Take it up with AI... I have become very select in when I do a CC...But I still do them. "Do pension funds use covered calls"... Yes, some pension funds do utilize covered call strategies, particularly in volatile markets or when seeking to generate income and reduce downside risk. Covered calls can be a useful tool for pension funds seeking to balance income generation with managing risk exposure. Here's why and how pension funds might use covered calls: Income Generation: Covered calls can provide a steady stream of income through the premiums received from selling call options. This can be attractive for pension funds needing to meet their payout obligations. Downside Protection: While not a perfect hedge, covered calls can offer some downside protection by generating income that can offset potential losses if the underlying stock price declines. Volatility Management: In volatile markets, covered calls can help reduce the overall volatility of a portfolio, which is often a key concern for pension fund managers. Strategic Implementation: Pension funds might employ covered calls as part of a broader investment strategy, potentially alongside other asset classes or strategies to achieve specific investment goals. Examples: Several large west coast public pension plans have been reported to have hired investment firms to manage covered call writing programs. The Los Angeles Department of Water and Power Employees' Retirement Plan and the Seattle City Employees Retirement System are examples of pension funds that have adopted covered call strategies, according to Institutional Investor.