Recapturing the upside in income generation through covered calls

We take a closer look at futures exposure management in equity call overwriting strategies.

Equities 29 Nov 2022
Markus Purtschert Mario Dal-Col Douglas Hayley-Barker


  • Covered call strategies provide an attractive and stable income stream that enhances the yield from an equity investment and adds a defensive profile to returns
  • Our next generation approach to enhanced income maintains a high income stream, but offers higher equity participation even in bull markets
  • The strategy adds a dynamically managed long index futures position to an index covered call position to improve upside capture of the total portfolio and retain full exposure to alpha potential from stock selection
  • The overlay provides exposure to an alternative source of potential return over time which is not directly correlated with equity market direction

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