High Income Strategy

Two sources of income. One defined structure. Monthly cash flow by design.

The High-Income Strategy combines two complementary sources of return: option premiums earned from selling short put spreads on the S&P 500 Index, and interest earned on a conservative allocation of approximately 75% of the portfolio to U.S. Treasury Bills. Together, these components are designed to generate consistent monthly income with a defined risk structure and tax treatment most income strategies cannot match.

The strategy's risk framework is built into the option structure itself. By selling put options that are typically 10% out-of-the-money and simultaneously purchasing protective puts further below, the strategy defines a maximum monthly loss before any trade is opened. Market conditions still determine whether losses occur, but the structure caps how far those losses can go in any single month, even during periods of significant equity decline. Losses can be substantial within that cap. They cannot exceed it.

The strategy is also tax-efficient. Section 1256 option contracts allow 60% of gains to be treated as long-term capital gains regardless of holding period, a meaningful advantage for investors in higher tax brackets. Combined with the income from the T-Bill allocation, the structure is engineered to deliver more after-tax yield than most traditional income strategies for high-net-worth investors.

The High-Income Strategy is dynamically managed, with positions monitored and adjusted in response to changing market conditions. It's built for investors who want steady monthly income and are comfortable forgoing the potential for outsized equity gains. The strategy isn't designed to outperform the stock market. It's designed to deliver consistent income with the structural cap on monthly losses known before any month begins.