Call overwriting strategies have always occupied an interesting niche position straddling the worlds of structured products and funds with the concept originating from equity fund managers decades ago.
The basic idea is to have a primary position invested in a group of stocks or tracking an index, and on top of this a series of call options are written, either on individual stocks or the entire index or basket. This strategy is also known as selling covered calls or buy-write. This terminology comes from the fact that the calls are covered (protected) by the stock holding, or that the stock is bought and then the option written. The call overwrite strategy is similar in spirit to the revers
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