Abstract: A financial instrument involves creating an underlying asset portfolio and implementing a passive total return strategy into the financial instrument based on writing a covered call option against that same underlying portfolio for a set period and using the premium from selling this new call option to ‘cover’ additional options or option spreads written. The additional options are put option credit spreads, and all option positions are held until expiration, when a new call option is sold, and the premium from that option is used to cover additional options.

Abstract: A financial instrument involves creating an underlying asset portfolio and implementing a passive total return strategy into the financial instrument based on writing a covered call option against that same underlying portfolio for a set period and using the premium from selling this new call option to ‘cover’ additional options or option spreads written. The additional options are put option credit spreads, and all option positions are held until expiration, when a new call option is sold, and the premium from that option is used to cover additional options.

Abstract: A financial instrument involves creating an underlying asset portfolio and implementing a passive total return “collar” strategy into the financial instrument based on writing a covered call option against that same underlying portfolio for a set period and using the premium from selling this new call option to buy protective put option diagonal spreads such that the long leg of the put option diagonal spread is longer-dated and struck closer to at-the-money than the short leg of the put option diagonal spread. All option positions are held until just prior to expiration of the shorter-dated options, at which time all option positions are closed, a new call option is sold, and the premium from that option is used buy new protective put option diagonal spreads.

Abstract: This invention provides methods and processes for creating a new investment vehicle which reduces risk while investing in a single asset or index. A fund invests the bulk of its assets in an asset and allocates a fixed annual percentage of its assets to the purchase of hedging derivatives. Each period's investment is treated as a separate tranche or slice of the fund. This allows for subsequent redemptions to be handled appropriately.