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CAGR is not really a good metric for the covered calls strategy for several reasons. One, is that the strategy is for generating cash to live on so it gets consumed and cannot be compounded. As Denny says, it is $/day that counts and from an historical standpoint the success/failure metric would be cash generated in year 2 versus that generated in year one.

Another problem is that you probably cannot compound the entire gain because you must add another 100 shares. Not like reinvesting dividends where you can buy fractional shares and compound every penny.

For example,the 9/6 $143's netted $805 which would buy only 5 shares. So you need 20 contracts (actually 18) in order to compound the results the next round.

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