Beyond Dividends and Coupons: The Role of Options in Multi-Asset Income Investing

AllianceBernstein’s Daniel Loewy, Karen Watkin, Fahd Malik and Alexander Barenboym examine how option strategies can enhance multi-asset income portfolios. Beyond Dividends and Coupons: T…

• Selling options can access the volatility risk premium, providing an income source distinct from dividends and bond coupons.
• Covered calls, put writing and straddles offer different trade-offs between income, upside participation and downside risk.
• Effective implementation requires dynamic risk management, diversification and attention to total return rather than simply maximizing premiums.

Explore the full report to understand how options can complement traditional income assets.