Mercury Capital Management’s Monthly S&P Income Generating Program The basic strategy of MCM’s program is to attain profits by selling options on the S&P stock index, balancing collection of premium with risk management.  This will be executed with the use of selling option spreads, with the objective that both options expire worthless and all the premium collected from the sale is retained as profit.  It is a way to take advantage of time decay in a limited risk strategy.

 

Mercury Capital Management’s Monthly S&P Income Generating Program

Some of the benefits of using this type of program:

  • Can be used to possibly generate monthly income

  • Can help to offset losses in a stock portfolio

  • Can be used to support market risk management

Why Stock Index Options?
Because stock indexes tend not to be as volatile as individual stocks. And options on the stock indexes such as the S&P 500 are very liquid, allowing for less slippage in pricing. Using stock index options, and credit spreads, an investor can possibly generate monthly income, as well as help offset losses in their stock portfolio. These strategies can be used for risk management, and be tailored to fit a bullish, bearish, or neutral market outlook.
 

Previous           Next

There is a risk of loss trading futures and options.  Past performance does not necessarily indicate future results. Trade with risk capital only. Commodity trading is not appropriate for all investors.  Read our full disclaimer.