FINANCIAL INSTRUMENT WITH SELF-COVERING OPTION POSITIONS

摘要

A financial instrument involves creating an underlying asset portfolio and implementing a passive total return strategy into the financial instrument based on writing a covered call option against that same underlying portfolio for a set period and using the premium from selling this new call option to ‘cover’ additional options or option spreads written. The additional options are put option credit spreads, and all option positions are held until expiration, when a new call option is sold, and the premium from that option is used to cover additional options.