Equity Premium Strategy updated

Equity Premium Strategy

Investment Objective

•Capture broad equity market upside while creating higher income with less volatility

Investment Strategy

  • Actively manage a diversified equity portfolio using, macro factors, fundamental valuation, and technical tools to establish thematic positions


  • Low-cost, highly liquid ETFs are mainly used to establish broad market exposure


  • An option overlay strategy is utilized to create income and manage portfolio outcomes:
    • Cash secured put-write approach is used in a diversified manner across various sectors, security types, price points, and expiry dates.  Our diversification strategy seeks to optimize the relationship between income created and while minimizing portfolio gamma risk, exercise risk and overall portfolio risk. i.e., smartly capturing volatility risk premium.       
    • Covered calls are selectively sold on the portfolio holdings to create additional income and manage portfolio risk


This strategy avoids the use of leverage to enhance portfolio predictability, liquidity, and transparency