Options Income Strategies

Think of options like they’re insurance policies. It can be beneficial to be a buyer or a seller of options, depending on your investment objective. Our cash-covered put writing strategies earn premiums by selling protection on high-quality companies, giving your portfolio an income-generating edge.

Q&A: using options for income

About our options income strategies

  • Cash-covered put selling mines volatility from a portfolio of stocks we love
  • Stocks selected based on screens of quality, value and sentiment factors
  • No leverage and tight risk management
  • Monthly distributions
  • Tax-efficient corporate class structure

Generate a stable yield using deep out of the money puts.

Visit PYF fund page for more details

  1. 1

    A lower-risk source of alternative yield

  2. 2

    Options written 8-10% out of the money

  3. 3

    Stable yield with low volatility and low correlation to equity markets

Diversify your equity holdings using closer to the money puts.

Visit PAYF fund page to learn More

  1. 1

    A medium-risk equity diversifier with an emphasis on yield

  2. 2

    Options written 3-5% out of the money

  3. 3

    Higher yield generated through tighter correlation to equity markets

How to buy

Advisors, please contact your rep or email us.

Purpose Premium Yield Fund

ETF ticker: PYF on the TSX
Class F: PFC2301
Class A: PFC2300

Also available in non-FX hedged (PYF.B) and USD (PYF.U) versions

Purpose Enhanced Premium Yield Fund

ETF ticker: PAYF on the TSX
Class F: PFC4401
Class A: PFC4400

Q&A with the fund manager

  • First off, what’s the difference between selling calls and selling puts?

  • How can investors use puts in their portfolios?

  • How exactly does a put act as insurance for your stocks?

  • Is selling puts essentially applying the insurance business model to an investment portfolio?

  • Insurance companies sometimes pay out huge amounts, yet they manage to operate in a fairly stable manner. Does selling puts add stability to your portfolio?

  • What exactly are you looking for when you decide to execute an options trade?