Covered Calls

[Taxmantoo]

How much is she paying in commissions?
If he's not churning her, either they did some bad picking or the downturn might be temporary. If he's churning her portfolio to make commissions, she's heading the way that Suze Orman claims a broker did to her 30 years ago, when she turned a substantial sum into nothing in short order.

I'm thinking that if he was more interested in Mom's welfare than his commissions, he might have given her a short put portfolio instead of the equivalent in covered calls.

The broker that I used to cross-refer with probably would have had a 90 y-o heavily in CDs or bonds, mostly tax free munis if she was in a high tax bracket.

There is a good bit of liability potential if a broker advises a client to put their money in vehicles which are "not appropriate for the investor's situation".