Quote Senior Portfolio Manager, Macquarie Equity Income Fund.

“The option premium received acts as a partial cushion to downside movements in the market and helps provide more consistent returns to investors, especially in more volatile times. In the current volatile market, investors can generate 20% annualised income by selling call options on a portfolio of shares. The greater the share market volatility, the greater the option premium received and hence, the greater the buffer to downside movements in the market.”

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