This thesis evaluates covered call strategies using ATM, 2% OTM, and 5% OTM calls against the SPDR S&P 500 ETF Trust benchmark over 2009–2023.

While no statistically significant outperformance is found overall, the 5% OTM and 2% OTM approaches generate higher annualized returns than SPY, with the 5% OTM strategy delivering the strongest results.

However, the apparent advantage may overstate real-world profitability.

The findings suggest that covered calls can enhance income and slightly improve returns under certain configurations, but execution costs remain a critical consideration.

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