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Yes: you made money out of an income producing strategy. You were not hedging against the downside!!! Would you care to enlighten us on what the market value of the stocks you hold that you write CCs over is? To achieve that return, my guess is that you would need about 5 mil face value of...

Good to see that there are some sane people out there. :D

They really do not protect a portfolio from capital loss. When writing CCs you sell the upside for a couple of pieces of silver, but wear all the downside risk. CCs are an income generating strategy with no value as a hedge.