Covered Call Income | Separately Managed Account
The Covered Call Income SMA strategy seeks income and growth of capital from the sale of covered call options on high-quality U.S. large capitalization equities. Stocks are purchased while call options are written/sold out-of-the-money with the intention of the stocks being called away by expiration.
Strategy Highlights
Seeks cash flow through option premiums, short-term capital gains, and dividends.
Short-term focus can pair well with traditional long-term strategies.
Active management of this SMA focused on mitigating downside risk of individual companies.
SMA Portfolio Construction
1ST | Macro Outlook
Review sector weighting trends based on the S&P 500 and macro-economic research.
2nd | Universe
Identify best candidates of U.S. listed companies finding candidates based on price and market capitalization.
3rd | Screen
Utilize Revelation Investment Research to analyze downside risk based on valuation, growth, fundamentals, and sentiment.
4th | Decision
Select 25-30 U.S. companies for this SMA with sufficient option liquidity, attractive option premiums, and near-term growth outlook. Positions are regularly reviewed.