Readers of this blog are familiar with the “covered call” strategy but most practitioners (like myself) have only applied this strategy in its basic form. Hence, I was quite intrigued when I came across Bellmont Securities, a Portfolio Management company that implements covered calls a little differently using Index Options. David Montuoro, one of their directors has kindly agreed to contribute an article to educate us about this alternative approach which offers some surprising advantages….
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David Montuoro is a co-founder and director of Bellmont Securities. He holds a Bachelor of Economics (Economics and Computer Science) and a Masters of Finance (Market Microstructure) from the University of Sydney.
Prior to establishing Bellmont, David worked in an advisory role at a Sydney based broking firm where he managed a book of private clients. Starting as the most junior adviser on the desk he quickly become a key person and regularly travelled around Australia representing the firm at seminars and events. In addition to his role as an adviser, David also assisted the firm as a trader / market maker, providing continuous quotes on intra-day SPI futures options and with this background developed an options valuation model for this niche market, a first in Australia.
He is passionate about the intersection of financial services and computer science and has developed a number of proprietary software systems, which sit at the heart of Bellmont’s operations.