Covered Call Income
The sale of covered calls increases the portfolio’s income but limits the profit potential to the strike price written on the calls at the beginning of the process.
Covered Call Income SMA 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.
Covered Call Income 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.