Strategy Library

Structured Options Frameworks

This library maps strategy mechanics to objective, risk posture, and implementation context for institutional overlay design.

Strategy	Objective	Risk Profile	Description
Covered Call	Yield enhancement	Moderate upside cap	Monetizes elevated implied volatility while maintaining core equity exposure.
Cash-Secured Put	Disciplined entry	Equity downside equivalent	Collects premium while defining a lower effective acquisition level for target exposures.
Short Strangle	Volatility premium capture	High tail risk	Sells out-of-the-money call and put to harvest range-bound risk premium.
Iron Condor	Defined-risk carry	Controlled tail exposure	Pairs short spreads on both sides to manage payout convexity in low-volatility regimes.
Calendar Spread	Term-structure expression	Event-sensitive	Exploits divergence between near-dated and deferred implied volatility pricing.
Protective Put Overlay	Drawdown control	Premium drag	Adds convex downside protection around concentrated or regime-sensitive exposures.

• Selection should reflect liquidity depth, borrow constraints, and execution slippage tolerance.
• Position sizing must align with portfolio risk budget and overlay governance limits.
• Event calendars and macro catalysts should be integrated into expiry and strike design.