Options Income
Safe "Equity-Bond" High-Yield Income
The profound effect compounding rates of return play in generating wealth puts capital to work automatically, with little-to-no-effort on your part. Options take this a step further to accelerate compounding. Thus our XLR8R Fund.
Our options generate additional income drafting off the considerable analysis and selection process of K.I.M.’s primary funds -- Core Compounders and Momentum-Trend – by selling Covered Call Options that utilize strict underwriting standards.
The Covered-Call is highly capital efficient because the investment – which already purchased ownership shares in a great business via the firm’s prime portfolios (hence the term COVERED Call as there’s no risk exposure whatsoever beyond the underlying shares) – gets collateralized in an option trade that yields a premium similar to interest on a loan or a bond. In short, it lets you get paid for holding stock.
More than a quarter century of data shows that a passive systematic allocation to Options adds +5% alpha over the benchmark S&P 500 Index. Using an active dynamic allocation the gains double. It achieves an annual return of 18.4% (9.3% above the index). (SOURCE: John Marshall, Managing Director, Goldman Sachs Derivatives; Advisory Board, Johns Hopkins University Center for Financial Economics; 2023).
Reinforcing the data, a flagship fund in our network alliance beat its global benchmark during a 23-year span from March 2001 until December 2024 by 28.6% (SOURCE: M.A.P.; 2024).
Fact Sheet
Past performance may not be indicative of future results
| XLR8R | Mid- to Large-Cap | Options Derivatives | 2017 | 4.1% alpha over benchmark S&P500 (net of fee) |
| <20 | ~35 annually | 1.3 | 1.6 | 1.2% |