Covered Call
Regular income
Objective
Generate additional income from an asset already owned, with controlled risk.
Principle
OIS Finance, as a discretionary manager , uses the right attached to the client's asset to generate income, without selling the original asset.
The client owns an asset.
OIS Finance implements a strategy that allows for the collection of regular income.
In return, the maximum gain is intentionally limited.
The strategy is tailored to the client's risk profile.
Scenario: 1
Stable or slightly bearish market:
income is collected.
Scenario: 2
Moderately bullish market:
income is collected and the asset is rising.
Scenario: 3
Strongly bullish market:
gains are capped according to defined conditions.
Summary
Assets held → Revenue generated
Capped gain → Controlled risk
💰 Concrete example – Covered Call
Customer situation
Assets held: 1,000 shares of X
Current price: 100 CHF
Portfolio value: CHF 100,000
Objective: to generate income
OIS Finance acts as discretionary manager
Structure set up by OIS Finance
Selling a call
Strike: 110
Deadline: 3 months
Premium received: CHF 3 per share
➡️ Immediate income: CHF 3,000 ➡️ Quarterly return: 3%
Scenarios at the end of the term
🔴 Market ≤ 110
The call expires worthless.
The client retains the shares
Income retained: CHF 3,000
🟠 Slightly bullish market
Stocks are rising
The customer benefits from the increase
The income is retained
🟢 Market > 110
The shares are being sold at CHF 110
Gain on the stock + income received
The increase beyond 110 is abandoned.
Indicative projection of your
investment strategy