Stephen Crewe: Option premium as an alternative income source

UK interest rates may have risen for the first time in a decade last month and yet, for those seeking income, an increase of 0.25% is unlikely to have set pulses racing - particularly since it may be some time until we see another hike. In the meantime, balanced funds are still struggling to deliver enhanced levels of income without moving up the risk spectrum - but there is a solution to this dilemma: deriving income from option premia. The strategy of selling options provides an enhanced level of income and exposure to an additional source of return but, most importantly, it allows for...