Covered calls on growth stocks can limit gains, Adam Khoo warns

Covered calls on growth stocks can limit gains, Adam Khoo warns
Selling covered calls can limit stock gains

Adam Khoo, executive chairman and co-founder at Adam Khoo Learning Technologies Group, cautions investors against selling covered calls on growth stocks such as NVDA, PLTR, FTNT, and PANW.

Khoo states that this approach can lead to missing significant upside when these stocks deliver outsized returns, drawing from his own early experiences in the market.

Khoo previously argued that the so-called “Mag 7” stocks represent exposure to hundreds of companies through acquisitions, countering the perception that they dominate the S&P 500 alone (article). He also cautioned that AI Capex stocks could see a 50 percent correction, with capital likely to shift into other sectors (article). These comments frame his recent warning about covered calls on high-growth names.

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