Also note that I'm talking about dividend paying stocks because that's what the thread is about, not SPY. The OP makes that pretty clear. So once again the reading comprehension thing is an issue. If we were talking about SPY with its greater options liquidity, obviously my comments would have been different.
There is no 'extra points' without no 'extra' risk. You could almost rather say: It is good for essentially no extra points with just some extra risk.
I would agree with you. I do think you quoted the wrong person though - I've been arguing the bonds have interest rate risk. CL has been arguing they don't. Incidentally, given that he discusses his backtest over the last 25 years, and bonds have been in what amounts to a 30 year continual bull market, that's a little disingenuous since we've reached the end of the bull market. We're at zero yield - the ride's over.
Agreed, but that is exactly my point. If Joe Sixpack is diversified, he also has a beta of near 1. I'm not saying this is the best strat out there. In fact, having covered calls as part of the strat automatically disqualifies it from being the best strat, IMO. Also, keep in mind that long treasuries is a hedge against a crash.
No, the point is that over the long term the paper gains and losses due to rate risk will be a wash. Leaving only the yield to consider. Remember that we are essentially talking about a very long term buy and hold. You would only ever be out of the position for 1/2 day occasionally. Rate risk is not a concern.
I never said I performed a 25 year backtest during the ideal period. Again, you need to take your own reading comprehension advice. You stated that long 10Y notes is a losing strat right now. I used that period as an example of how over the long term these rate fluctuations will be a wash. Sometimes it works in your favor and sometimes against, but long term it doesn't matter. It's all about the yield, which contrary to your statement, is not at zero, it is currently 3.5%.