Covered Call Cash Secured Put Income

objective

Run premium-income option overlays with robust assignment, downside, and carry diagnostics.

workflow

1. define underlier universe, tenor, and strike-selection rules.
2. construct covered-call and cash-secured-put positions with capital constraints.
3. project income, downside exposure, and assignment risk outcomes.
4. stress outcomes under gap moves and volatility repricing.
5. deploy only when yield remains attractive after risk-adjusted filters.

required diagnostics

• premium yield and drawdown profile by moneyness bucket.
• assignment rate and post-assignment inventory impact.
• downside participation versus benchmark underlier returns.
• event-risk sensitivity around earnings and macro dates.
• net income after transaction and hedge costs.