notices - See details
Notices
HP
H P Boyle (not verified)
1st February 2020 | 8:33am

You could be making even more incremental return if you sold positions with low risk-adjusted return and redeployed the capital into positions with higher expected risk-adjusted returns in a more dynamic fashion.

I guess this strategy of forced time rebalance and call option sales makes sense if you have low idea velocity (i.e., there is no better alternative for the capital).