MAI Managed Volatility Strategy

Investment Strategies > MAI Managed Volatility Strategy



The MAI Managed Volatility Strategy is a risk-managed liquid alternative that combines a portfolio of dividend growing stocks and an option overlay strategy that produces durable portfolio income and can potentially lower portfolio volatility.


The MAI Managed Volatility Strategy with options overlay is distinguished by:

1. Multiple Sources of Performance
  • Option premium cash flow from selling calls and puts
  • Stock appreciation potential
  • Dividend income

2. Actively Managed Options Overlay

To increase portfolio cash flow and lower the volatility of its underlying equity portfolio, the Strategy writes multiple, short duration (≤9 weeks) contracts on individual stocks owned in the strategy.

3. Dividend Growing Equities1

The evidence demonstrates that dividend growers produce stronger long-term performance. History also has shown that not only do dividend growers outperform over a market cycle, but they generally do it with less volatility.

4. Durable Portfolio Income

We believe that the option writing component and individual equity dividend yield can produce durable and predictable cash flow to the portfolio.

5. No Concentrated Bets

The Managed Volatility Strategy is diversified and has no embedded interest rate bets.


1 Source: Ned Davis Research, 12/31/12. Past performance does not guarantee future results, which may vary.



Additional Strategy Information:

Beyond the Covered Call 
Managed Volatility Team >>
For more information on our Managed Volatility Strategy contact: Erik Huss or Riley Rindo
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