Disclosure. For US accredited investors under Reg D 506(c). Informational only; not an offer. Any commitment requires accreditation verification, KYC/AML, and definitive documents. Targets are estimates. Capital is at risk.
Managed Covered Call Income: Monthly USD Distributions
Goal: steady USD income without you managing options. We run a rules-based covered call program on liquid US exposures, collect option premium and dividends, and pay on a monthly cycle. Upside is capped by design. Drawdowns still happen. We tell you straight and show the policy.
1) Snapshot
Item | Outline |
---|---|
Vehicle | Private LP/LLC. Reg D 506(c). Verified accredited investors only. |
Mandate | Managed covered calls on US-listed exposures with strict risk limits and trading rules. |
Payout policy | Monthly USD distributions after expenses and reserves. Not guaranteed. |
Risk profile | Equity market risk, capped upside, assignment risk, gap moves. No fairy tales. |
Minimum | Typically $250k. Larger tickets prioritised. |
Liquidity | Periodic windows with notice. Gates may apply in stress. |
Fees | Base management plus performance over a preferred return. Full schedule in the PPM. |
2) How Income Is Generated
- Option premium: Systematic call writing over core exposures.
- Dividends: From underlying holdings where applicable.
- Recycling: Rolling and re-striking positions to keep cash working.
- Reserve: 1 to 2 months of payouts held to smooth weak periods.
3) Trading Rules That Matter
- Strike discipline based on target delta bands and realised volatility.
- Days-to-expiry ladder with weekly cycles as core, monthlies for balance.
- Roll criteria: profit target, time decay threshold, or risk-off trigger.
- Earnings and macro blackout rules to avoid dumb assignment.
- Concentration caps across underlyings and sectors.
- No exotic options or leverage-on-leverage. Keep it boring and repeatable.
4) Payout Mechanics and Examples
Illustrative monthly distribution on a $1,000,000 allocation:
Scenario | Net annual rate (policy) | Illustrative monthly distribution |
---|---|---|
Soft month | 5% | $4,166.67 |
Base month | 7% | $5,833.33 |
Strong month | 9% | $7,500.00 |
Distributions vary with market tone and realised volatility. Reserve policy can help smooth, not erase, variability.
5) Risks, Plain Talk
- Market drawdowns: Equity beta still hits NAV.
- Upside cap: Covered calls trade upside for current income.
- Gap moves and assignments: Fast markets can jump strikes.
- Volatility regime shifts: Premiums shrink when vol collapses.
6) Reporting and Tax Outline
- Monthly statements with income components and positions.
- Annual audit and year-end tax package. Structure drives whether you receive a 1099 or K-1.
- No advice given here. Speak with a CPA about your facts.
7) Eligibility and Process
- Confirm accredited status under Reg D 506(c). Verification is required.
- Receive PPM, subscription documents, payout policy, and risk factors.
- Fund on the call date. First distribution after initial accrual per policy.
Ready to allocate to a managed covered call income strategy with monthly USD payouts? Request the pack and start accreditation.
Request Allocation Start AccreditationDisclaimers
- Not an offer or solicitation. Any offer is made only through definitive documents.
- Targets are estimates, not promises. You can lose capital.
- Liquidity is periodic and may be gated to protect existing investors.
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