Index Income | Separately Managed Account
The investment objective of the Index Income SMA seeks positive monthly cashflow from option premiums. The strategy employs a long-term, time-decay, premium-capture put credit spread on the S&P 500 or similarly situated exchange-traded funds (ETFs).
Strategy Highlights
Seeks cash-flow in exchange for additional market volatility in existing portfolio.
Targets additional income alongside dividends and interest.
The purchase of a long put as part of the spread limits downside risk.
Underlying portfolio can be managed by us or the client.